GR Waiver for Import Rejections Re-export against Fresh Replacement

[Basha AbdulRazack]

Sir,

We (are 100% EOU unit) received one message from our HDFC towards GR waiver request for Import rejections re-export and getting fresh replacement.

('Warm Greetings from HDFC Bank.

We have checked internally with our compliance department, GR waiver will not be issued for Repair and Replacement to Non-SEZ units.

Case has to be referred to RBI. Kindly submit a request letter address to RBI thru HDFC Bank')

So it is very difficult to get GR waiver for other than SEZ units as per Banks reply, so please help us in this regard to get GR waiver for Import Rejection re-export against fresh replacement. Also we got permission from the Commissioner of Customs for re-export of rejections.

Please send valuable feedback about GR waiver and to ask righteously to our HDFC bank for
GR waiver.

Thanks & Regards

Abdul Razack.B

[Basha AbdulRazack]

Please clarify the above issues

[YAGAY andSUN]

Following para of RBI's Master Direction will be helpful to you.

C.1 Grant of EDF waiver
12AD Category – I banks may consider requests for grant of EDF waiver from exporters as under:
Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realisation during preceding three licensing years, whichever is lower. For export of pharma products by pharmaceutical companies, the annual limit would be 2% of average annual export realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN,WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme.
Exports of goods not involving any foreign exchange transaction directly or indirectly requires the waiver of EDF procedure from the Reserve Bank.

[Guest]

Sir

]In our case, we had taken EDF Waiver and sent defect equipments aborad for repair. But the exporter bills Euro 155000 towards repair value. Is it permissible to pay so much high amount in case of GR Waiver

Rgds

Jayanbta

AI Summary

EDF waiver requirement where re exports lack foreign exchange affects GR waiver for rejected imports and repairs. For re exports of rejected imports and repair/replacement transactions that do not involve any foreign exchange, an EDF waiver from the Reserve Bank is required and banks may decline GR waiver requests absent RBI approval; free of cost supplies within prescribed limits are ineligible for Duty Drawback or other export incentives.