What changed
The temporary relaxation allowing 12 months (instead of 6) for export proceeds realisation, which was set to expire on Sep 30, 2011, has been extended for another year until Sep 30, 2012. This follows a review with the Government of India.
What it means for you
Exporters get continued breathing room to bring back foreign exchange, reducing pressure on working capital. Banks must update their internal systems and customer advisories to reflect the extended timeline. No change for SEZ units or warehouse exports.
What you must do
- Update internal compliance calendars to reflect the extended realisation period up to Sep 30, 2012.
- Notify all export customers about the continuation of the 12-month window.
- Ensure no change in reporting or documentation for SEZ and warehouse export transactions.
- Monitor circulars for any further extensions or modifications post Sep 2012.
Who it affects
AD Category-I banks handling export documents, Exporters of goods and software, Compliance and trade finance teams
Does this circular change the realisation period for SEZ units?
No, the provisions for SEZ units and exports to overseas warehouses remain unchanged as per earlier instructions.
What is the effective date of this extension?
The extension is effective from October 1, 2011, and will remain in force until September 30, 2012.