Compounding of Contravention under FEMA
Shailesh Verma
(Querist) 11 December 2017
This query is : Resolved
I want to know whether non realization of export proceeds can be compounded or is there any other process to solve this?
P. Venu
(Expert) 12 December 2017
You have not disclosed any fact at all.
Shailesh Verma
(Querist) 12 December 2017
We have exported goods to a client in 2014 for the invoice value of USD 3795 on terms payment against documents. The buyer sent only USD 995. USD 2800 is still balance. We are unable to realize the balance payment. What can we do in this case?
M V Gupta
(Expert) 13 December 2017
If the goods were exported on terms" payment against documents" how the importers bankers delivered the docs without full payment? If the bankers delivered the documents in breach of conditions of delivery of documents, they are primarily answerable to you. Consider issuing notice to the bank and the importer..
M V Gupta
(Expert) 13 December 2017
In continuation of my above reply, I would suggest that you should refer to the RBI Master circular No.14/2014-15.
Shailesh Verma
(Querist) 14 December 2017
Documents were sent directly to the client alonwith the shipment.
M V Gupta
(Expert) 16 December 2017
In ur posting on 12 December u have stated that the export of goods was made on terms payment against delivery of documents. Now u are saying that u had sent the documents directly. This is against the normal practice of international trade and RBI guidelines. I have suggested to see the master circular of RBI. u may take steps to resolve the non repatriation of the sale proceeds in the light of directions conatained in it. U may also seek guidance of your bankers (AD).
