"Cancelación" de facturas de exportación no realizadas – Exportación de bienes y servicios – Simplificación del procedimiento

Exports are available with various incentives in India such as refund of taxes paid with respect to export, various duty free scripts, Duty Drawbacks etc. However, all such incentives are available subject to realisation of consideration for export of goods or services. 

Writing off amount receivables in books of accounts is permitted. However, norms are not that easy when balance with respect to export bills is to be written off. Reserve Bank of India has prescribed various rules and regulations for writing of unrealised export bills.

In this article we will discuss an elaborate insight into what a write-off is, what are the RBI and FEMA guidelines regarding unrealised export bills, Write-off relaxation, and extension of time etc..

1. What is a Write-Off of unrealised export bills?

Whenever a business carries out sale of goods or supply of services then the amount receivable against such sales is recorded as “Accounts Receivables” in books of accounts. However, in many situations, such amounts never get released due to various reasons such as insolvency of the customer, mutual dispute, fraud on part of the customer etc. In such a scenario, amount pertaining to unrealised sales invoices is required to be written off.

In case of export of goods or services, It is obligatory on the part of the exporter to realize the full consideration of exported goods or services in foreign currency within a stipulated period of time from the date of export of goods and services. 

However, if any amount related to export bills becomes non-realisable then before writing off such amount the exporter is required to adhere guidelines and regulations issued by RBI relating to “Write-off” of unrealised export bills vide RBI/2012-13/435 A.P. (DIR Series) Circular No. 88 dated 12 March 2013 .

2. RBI guidelines on write-off of unrealised export bills

1. In case an exporter has not been able to realize the outstanding export dues despite his/her best efforts, he/she may opt either of the following options to write off the unrealised export invoices:
   • Directly approach the Authorized Dealer Category-I, who had handled the relevant shipping documents, or 
   • Exporter may himself-write-off the amount with appropriate supporting documentary evidence along with a request for write off of the unrealized portion.
2. Write off is allowed subject to the fulfilment of stipulations regarding surrender of incentives prior to “write-off” adduced in the A.P. (DIR Series) Circular No. 03 dated 22 July 2010.
3. After Liberalisation and simplification of procedure of write off, limits prescribed for ¨write-offs¨ of unrealized bills:

Self-write-off by an exporter (Other than Status Holder Exporter)5%*Self-write-off by Status Holder Exporters10%*Write-off by AD (Authorized Dealer)10%*

*Of the total export proceeds realized during the previous calendar year.

3. Conditions for “write-off” of Unrealised Export bills

Unrealised export invoices shall be allowed to write off subject to the following conditions:

1. Specified percentage for written off shall be computed on total export proceeds realised during the previous year.
2. Write off shall be allowed for such invoices which remain outstanding for more than 9 months.
3. The exporter is required to provided satisfactory documentation evidence that he has made every effort to collect the dues;
4. The case must fall under any of the under noted categories:
   • The overseas buyer was declared bankrupt, and a certificate from the official liquidator stating that the export earnings could not be recovered was produced.
   • the overseas buyer is not traceable over a reasonably long period of time.
   • The commodities exported were auctioned or destroyed by the importing country's port, customs, and health officials.  
   • The unrealized amount is the balance payable in a case that was settled with the help of the Indian Embassy, Foreign Chamber of Commerce, or another similar organisation.
   • The unrealized amount indicates the outstanding undrawn balance of an export bill (not exceeding 10% of the invoice value) that proved unattainable despite the exporter's best efforts.      
   • The cost of pursuing legal action would be disproportionate to the amount of the unrealized export bill, or if the exporter, even after winning a court battle against the foreign buyer, was unable to carry out the Court's judgement owing to circumstances beyond his control;
   • Bills were written for the difference between the letter of credit value and the actual export value, or the provisional and actual freight charges, but the amount has remained unrealized due to the foreign buyer's failure to pay the bills, and there are no prospects for realisation.

5. If any proportionate export incentives were used in relation to the related shipments, the exporter is required to surrender such incentive (for situations not covered by A. P. (DIR. Series) Circular No.03 dated July 22, 2010). Before allowing the applicable bills to be wiped off, AD Category – I banks should seek paperwork demonstrating the surrender of any export incentives received.

6. In the case of self-write-off, the exporter must submit a Chartered Accountant's certificate to the concerned AD bank indicating following details:
   • export realisation in the previous calendar year,
   • Amount write-off already claimed during the year, if any, 
   • the relevant GR / SDF Nos. to be written off;
   • Bill No., invoice value, commodity exported, and country of export. 
   • The CA certificate may also indicate that the exporter's export benefits, if any, have been surrendered.

4. Cases where “Write-Off” facility is not available

Following export bills shall not be allowed to be write off under this scheme:

1. Exports to countries with externalisation issues, in which the overseas buyer has deposited the export value in local currency but the amount cannot be repatriated by the country's central banking authorities.
2. The Enforcement Directorate, Directorate of Revenue Intelligence, Central Bureau of Investigation, and others are investigating the EDF (export declaration form), as well as outstanding debts that are the subject of civil and criminal actions.

5. Write-off in cases of payment of claims by ECGC and private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA)

1. El AD cancelará las facturas de exportación correspondientes tras recibir una solicitud del exportador acompañada de pruebas documentales de la ECGC o de compañías de seguros privadas reguladas por la IRDA que indiquen que la reclamación respecto a las facturas pendientes ha sido satisfecha por ellas.
2. Dicha cancelación no se limitará al límite del 10% mencionado anteriormente.
3. Los incentivos se devolverán de acuerdo con la Política de Comercio Exterior.
4. Las reclamaciones liquidadas en rupias por la ECGC y las compañías de seguros privadas reguladas por la IRDA no deben interpretarse como una realización de exportaciones en moneda extranjera.

6. Flexibilización de la cancelación

Con efecto a partir del 27 de agosto de 2009, y tal como se indica en la Política de Comercio Exterior (FTP) 2009-14, no se requerirá la realización de los ingresos de exportación bajo ninguno de los Esquemas de Promoción de Exportaciones de la FTP, sujeto a las siguientes condiciones:

1. De acuerdo con los criterios actuales, el Banco de la Reserva o el banco AD Categoría I en nombre del Banco de la Reserva pueden autorizar una cancelación por méritos;
2. El exportador presenta un documento de la Misión Extranjera de la India correspondiente que certifique que los fondos de exportación no fueron recuperados del comprador; y
3. Esto no sería aplicable en casos de cancelación propia.
4. A excepción del Esquema de Devolución de Derechos, si el exportador se acoge a cualquiera de los Esquemas de Promoción de Exportaciones bajo la FTP 2009-14, se recomienda a los bancos AD Categoría I no insistir en la devolución de los incentivos de exportación proporcionales, sujeto al cumplimiento de los requisitos indicados anteriormente. El importe de la devolución debe recuperarse incluso si la reclamación es liquidada por la Export Credit Guarantee Corporation of India Limited (ECGC) o si el Banco de la Reserva permite la cancelación.

7. Extensión del plazo de realización de los ingresos de exportación

1. El Banco de la Reserva de la India ha otorgado permiso a los bancos AD Categoría I para prolongar el plazo de realización de los ingresos de exportación más allá de los 9 meses desde la fecha de exportación por hasta seis meses a la vez, independientemente del valor de la factura de exportación, sujeto a las siguientes condiciones:
   • La Dirección de Ejecución / Oficina Central de Investigación, así como otras agencias investigadoras, no están investigando las transacciones de exportación cubiertas por las facturas.
   • El banco AD Categoría I está convencido de que el exportador no pudo obtener los ingresos de exportación debido a circunstancias fuera de su control.
   • El exportador certifica que los ingresos de exportación se realizarán durante el período de tiempo extendido.
   • Al solicitar una extensión más allá de los 9 meses desde la fecha de exportación, el total pendiente del exportador no debe exceder un millón de USD o el 10% de los ingresos de exportación promedio de los tres años financieros anteriores, lo que sea mayor.
   • La declaración XOS debe incluir todas las facturas de exportación pendientes que tengan más de seis meses de antigüedad desde la fecha de exportación. Cuando un banco AD Categoría I haya concedido una extensión de plazo, la fecha hasta la cual se concedió la extensión puede indicarse en la columna "Observaciones".
   • Se pueden conceder extensiones en circunstancias en las que el exportador haya iniciado un litigio contra el comprador en otro país, independientemente del importe involucrado o impagado.
2. Cuando un exportador no haya podido realizar los ingresos de una carga realizada durante el plazo extendido debido a circunstancias fuera de su control, pero espera poder hacerlo si se concede una extensión adicional del período. Además, en circunstancias no cubiertas por el subpárrafo (i), se debe enviar una solicitud (por duplicado) a la Oficina Regional del Banco de la Reserva correspondiente en el formulario ETX a través de su banco AD Categoría I, acompañada de la prueba documental adecuada.