GR WAIVER REQUIREMENT

[SUDHAKAR SIVARAMAN]

WE ARE TRUST FORMED FOR CHARITABLE PURPOSE. WE ARE PLANNING TO EXPORT CYCLES TO SRILANKA FREE OF COST FOR CHARITABLE PURPOSE. NOW CUSTOMS AUTHORITIES ASKING US TO PRODUCE GR WAIVER CERTIFICATE FROM BANK. BUT BANKERS ARE SAYING WE CANNOT GIVE WAIVER CERTIFCATE SINCE ITS NOT COVERED UNDER RBI NOTIFICATION SINCE YOUR ORGANISATION IS TRUST. MY QUESTION IS WHAT IS THE PROCEDURE FOR THIS? IF NO WAIVER CERTIFICATE REQUIRED PLS LET ME KNOW FROM WHERE THIS IS POSSIBLE?

[YAGAY andSUN]

You need to follow the guidelines as mentioned in RBI Master Directions (export of goods and service). You AD (Bank) cannot deny to issue a EDF Waiver/GR Waiver. If required, you can submit following documents to your AD (Bank):-

1 CA Certificate stating that these Bicycles are for charitable purpose and does not involve any foreign exchange and foc.

Three copies of commercial invoice along with copies of Packing list.

GST Invoice - FOC.

[SUDHAKAR SIVARAMAN]

Thanks for the reply

I need certain clarification in this regard

1. If the goods are meant value charitable purpose why canot we put either 0 value or Rs.1 value in shipping bill?

2. If so there won't be GR waiver certificate requirement. Is it correct?

3. As per bankers wordings, the RBI does not specified free of cost for charity in their notification, so GR waiver certificate cannot be given. For this any solution?

[YAGAY andSUN]

You need to mention the Cost of Bicycles on the Commercial Invoice (Free of Cost) as a fair value for Customs Valuation Purpose Only with Remarks that These Goods are Free of Cost and does not constitute any commercial transaction as no export proceeds will be generated/received against this Invoice.  GR Waiver will be issued on the basis of Commercial Invoice (Free of Cost) by the AD (Bank) which in turn will be mentioned on the Shipping Bill by giving the Serial No./Date of the GR Waiver (EDF Waiver).  Free Shipping Bill shall be filed and no Export Incentive will be claimed by you.

AI Summary

GR waiver requirement: Banks may issue EDF/GR waivers for free of cost charitable exports when proper documentation is provided. GR waiver for free of cost charitable exports can be issued by the authorised dealer bank under RBI Master Directions when supported by a CA certificate confirming charitable purpose and no foreign exchange involvement, three copies of commercial invoice (marked Free of Cost with a fair value for Customs), packing list, and GST invoice FOC. The shipping bill must be filed as a free shipping bill with the AD's GR/EDF waiver reference, and no export incentives should be claimed.