EBRC issue

[Kishan Barai]

40% Payment received from ECGC & 50% Payment from the Srilankan buyer. Kindly suggest the value for EBRC to claim MEIS. ICICI bank only provided 40% but for such cases, federal bank provides 90%. Who is correct in this case ?

Kindly Read : RBI Norms.

C.22 Write-off – Relaxation

(d) The AD Category – I banks are advised not to insist on the surrender of proportionate export incentives, other than under the Duty Drawback Scheme, if availed of, by the exporter under any of the Export Promotion Schemes under FTP 2009-14 , subject to fulfilment of conditions as stated above. The drawback amount has to be recovered even if the claim is settled by the Export Credit Guarantee Corporation of India Limited (ECGC) or the write –off is allowed by the Reserve Bank.

Link : https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=9056

Experts kindly enlighten ........

[YAGAY andSUN]

Please check FTP & HBP Vol. 1 2015-2020 mid term review for details.

[Kishan Barai]

Already checked but its defined on RBI Guidelines for Export Import which is provided above but it's confusing. So can you provide answer in 'Yes' or 'No' with explanation ??.

AI Summary

Export incentive entitlement may be affected by bank-verified realisation and guidance on recovery and surrender obligations. Whether EBRC value for MEIS should reflect proportions realised via credit-guarantee settlement and buyer receipts is contested among banks. Guidance advises AD Category I banks not to insist on surrender of proportionate export incentives (other than Duty Drawback) where FTP incentives are availed, subject to conditions, and requires recovery of drawback even if claim settled by a credit guarantee entity or write-off is allowed, creating uncertainty for EBRC valuation.