Export Realization for Rule 96(B)

[DAMINI TALWAR]

As per the provision of Rule 96B(1), where the sale proceeds, or any part thereof, in respect of such export of goods are not realised by the applicant within the period allowed under FEMA, but the RBI writes off the requirement of realisation of sales proceeds on merits, the refund paid to the applicant shall not be receovered.

Here what is the meaning of RBI writes off the requirements of realisation of sales proceeds on merits ? does it cover self-write off cases or by AD Category – I bank on behalf of the Reserve Bank,as mentioned in the RBI circular ?

AI Summary

Export Proceeds Compliance: RBI Write-Offs Validate FEMA Rule 96(B) Timelines, Preventing Refund Recovery for Exporters A discussion forum explores Rule 96(B) regarding export proceeds not realized within prescribed FEMA timelines. The key interpretation is that RBI write-offs on merits, including those by Authorized Dealer Category-I banks under RBI delegation, can prevent refund recovery. Self-write-offs by exporters are not valid. Formal approval from AD banks or RBI is required to protect against potential refund recovery.