TIME LIMIT AND LIABILITY OF REVERSAL OF FOREX IN CASE OF RECALL

[Guest]

Within what time limit the forex ,incentives obtained by the exporter are to be reversed? Is it necessary to reverse the forex in case the goods recalled do not physically come back( are destroyed by the foreign importer itself)? Which forum/website governs/exhibits the open entries of such forex reversals?

[YAGAY andSUN]

It is commercial terms, if your foreign customer is not demanding the foreign payments paid by him to you then no need to pay it off or if it is being adjusted through credit note/debit note then even in these situation you need to pay it off. Export if completed then no need to reverse or returned to Government otherwise you need to pay it off along with interest at applicable rate.

AI Summary

Reversal of forex incentives depends on commercial adjustment and whether the export is treated as completed; repayment and interest apply otherwise. Reversal of forex incentives depends on contractual facts and export completion: absent buyer demand or commercial adjustment (credit/debit note), the exporter need not remit foreign payments; where adjustment or non-completion applies, the exporter must repay incentives with applicable interest. Physical non-return of goods alone does not automatically trigger reversal. The reply does not specify a forum or website recording forex reversal entries.