Extension of Time Limit

6C.16

In cases where an exporter has not been able to realise proceeds of a shipment made

by him within the period prescribed (i.e the due date for payment which has to

fall within six months from the date of shipment, vide Rule 8 of Foreign Exchange Regulation Rules, 1974) for reasons beyond his control, but expects to be able to realise proceeds if extension of the period is allowed to him, necessary application (in duplicate) for the purpose should be made to Reserve Bank in form ETX together with appropriate documentary evidence. Extension will not ordinarily be granted unless Reserve Bank is satisfied that the exporter is in no way directly or indirectly responsible for the delay in realisation of proceeds and that by grant of a short extension the exporter will be able to realise proceeds.

Shipments Lost in Transit

6C.17

When shipments from India for which payment has not already been received either by

negotiation of bills under letters of credit or otherwise are lost in transit, authorised dealer

must see that insurance claim is made as soon as loss is known. The duplicate copy of GR / PP form should be forwarded to Reserve Bank with following particulars regarding insurance:

(a)

Amount for which shipment was insured.

(b)

Name and address of insurance company

(c)

Place where claim is payable.

In cases where claim is payable abroad, authorised dealer must arrange to collect

the full amount of claim due on the lost shipment, through the medium of his overseas branch/correspondent and forward the duplicate copy of GR/PP form to Reserve Bank only after the amount has been collected. A certificate for the amount of claim received should be furnished on the reverse of the duplicate copy.

NOTE:

Sometimes claims on shipments lost in transit are also partially settled directly by shipping companies/airlines under carriers' liability. Authorised dealers should ensure that amounts of such claims if settled abroad are also repatriated to India by exporters.