Self write-off on export proceeds not realied

[Narendra Soni]

Dear Experts,

Kindly suggest meaning of 'self write off' mentioned in para 2.87 of FTP, If we self write off in our books of account, then whether any pay back of incentives/benefit availed under FTP is required to DGFT/Customs.The relevent para is re produced as under:-

2.87 RBI write-off on export proceeds realization

Realization of export proceeds shall not be insisted under Foreign Trade Policy, if the Reserve Bank of India (RBI) or any “Authorised Bank” (authorised by RBI for this purpose) writes off the requirement of realization of export proceeds on merits and the exporter produces a certificate from the concerned Foreign Mission of India about the fact of non-recovery of export proceeds from the buyer. However, this would not be applicable in self - write off cases.

Kindly suggest at the earliest.

AI Summary

Understanding Self Write-Off of Export Proceeds Under FTP Paragraph 2.87: Implications for DGFT Incentives and Customs Benefits A participant in a discussion forum inquired about the implications of 'self write-off' of export proceeds under paragraph 2.87 of the Foreign Trade Policy (FTP). They questioned whether self write-off in accounting records necessitates repayment of incentives or benefits to the Directorate General of Foreign Trade (DGFT) or Customs. The policy states that realization of export proceeds is not required if the Reserve Bank of India (RBI) or an authorized bank writes off the requirement, provided a certificate from the Indian Foreign Mission is obtained. However, this does not apply to self write-off cases. A respondent advised checking a specific RBI Master Circular for further guidance.