Forfeiting of advances

[SANJIV KOTHARI]

Dear

We have received export advance from one of Iranian customer for supply of goods. Now customer does not want to take delivery and release balance payment.

Can we forfeit advance so received. Advance was received through UCO bank in INR.

Please let know if some one has idea to dealt such situation.

[YAGAY and SUN]

Please refer Master Circular No. 14/2012-2013 dated 02-07-2012 in this regard.  Further, forfeiting of advance payment would depend on your contract terms and conditions.

AI Summary

Forfeiture of export advance may depend on contractual terms and regulatory circular guidance for cross-border sales.
The permissibility of forfeiting an export advance depends on the express terms and conditions of the underlying contract and on applicable regulatory guidance, as noted in Master Circular No. 14/2012 2013; the advance in this instance was received through a bank in INR and the buyer has refused delivery and payment.