Request clarification on export.

[Vishal Shrivastava]

There is a manufacturer in India who entered into agreement with a Guinean company to export machinery from India to Guinea. As part of the agreement, the payment has to be made at certain times by the Guinean company. However, an issue has arisen where the manufacturer has recieved the money in total, but the export has not happened due to ongoing geopolitcal crises. Please let me know if he is in breach of any Indian law due to the ongoing situation, and what advise can be given.

The manufacturer advised that he has to submit data on Export Data Processing and Monitoring System (EDPMS).

AI Summary

Advance export payments require timely export completion or regularisation when geopolitical disruption delays shipment and leaves monitoring entries outstanding.
Advance payment received for machinery exports remains subject to FEMA export-completion and monitoring requirements where shipment is delayed by geopolitical disruption. Export is required within three years of receiving advance payment; after that period, refund of unutilised advance or payment of interest requires prior Reserve Bank approval. Receipt without a shipping bill leaves the transaction outstanding in EDPMS until completion, regularisation or closure. The exporter should notify the AD Bank, retain supporting evidence, amend the contract if delivery continues, and process any cancellation refund through the AD Bank.