Export Remittance from Third Party

[Rajesh Agarwal]

Dear Experts

Greetings!!

I had exported goods with bill to buyer based in Dubai and Shipped material to Dr. Congo at the instruction of the buyer .Now out of 5 consignments exported for 1st consignment the buyer has paid for 2nd consignment made part payment and said he was unable to make further payment but said he can arrange through some other party balance payments .In order to avoid any revenue loss I accepted payment from the other party arranged by the buyer .The other party’s name is not included in the shipping bill. Now bank is refusing to issue ebrc asking me to incorporate the name of the third party in the shipping bill only then they will consider .Experts kindly guide as what to do as I have no documentary evidence from the buyer that payment being remitted from third just telephonic conversation.

What will be the consequences if I fail to incorporate the name of the other party from whom I have received remittance .I am already in talks with the authorities for incorporation of the name.

Kindly guide.

[YAGAY and SUN]

If you fail to incorporate the name of the other party in Shipping Bill, from whom you had received remittance, then, in this scenario you won't get BRC and Export incentives. Further, you may be penalized under the provisions of FEMA.

AI Summary

Third-party export remittance: absent remitter identification, banks may refuse EBRC and incentives may be forfeited.
Failure to incorporate the third-party remitter's name in the shipping bill will cause the bank to refuse issuance of the Export Bank Realisation Certificate, result in loss of export incentives linked to realised proceeds, and may attract penalties under the Foreign Exchange Management Act; the exporter should seek amendment to the shipping bill and documentary evidence of the payment.