payment not receive for samples-how to go about it

[Ramakrishnan Seshadri]

Dear Sir,

We are manufacturer of automobile parts and we are sending samples to our customers under free sample invoice for which we will not received payment. For this we obtain GR waiver certificate from the bank and send the same,

As instructed by the bank as per the rbi guidlines , gr waiver value is restricted to ₹ 5 lakhs for the financial year. After that gr waiver is not possible. In this case if we send samples exceeding the value of ₹ 5 lakhs for which payment will not be received how to proceed for shipment .

Experts please request your guidance and support.

Thanks & Regards,

S.Ramakrishnan

[Yash Jain]

Dear Sir,

Well rbi has only restricted limit of ₹ 5 lacs to AD bank. If an exporter wants to send goods more than 5 lacs, then approach regional office of RBI through AD bank, they (Rbi)will consider merits and may grant permission to AD bank for granting gr waiver.

Also exercise combination of following options,

1. Utilize 2% or 5% limit fully in respect to export write off ; Please do normal sale and then do write off. Just keep corresponding with customer for payment and after 1 year produce all mails and ad bank will write off.

2. Trade fair / Exhibition .: Rbi prescribes no limit. Hence if possible take goods for trade fair and from there give to customers. Rbi allows $5000 gift per fair. Then sale the balance goods for token value and remit proceeds to india.

Rgds

AI Summary

GR waiver limit requires approaching the central bank for permission or using export write off and trade fair exemptions. Shipments of free samples beyond the AD bank's GR waiver ceiling require the AD bank to approach the regional office of the central bank for permission; alternatively exporters may use export write off procedures (treating shipments as sales and later seeking write off on evidentiary proof) or rely on trade fair/exhibition provisions and gift allowances to transfer samples without breaching the GR waiver limit.