Page 145 - COMBINED QUESTIONS AND ANSWERS - EDITION 2019 - PART II_Neat

(d) Reserve Bank will caution / de-caution the exporters in such cases based on
the recommendation of AD Category banks.
AD Category banks should follow the procedure mentioned below while handling shipping
documents in respect of caution listed exporters:
(a) They will intimate the exporters about their caution listing, giving the details
of outstanding shipping bills. When caution listed exporters submit shipping
documents for negotiation / purchase/ discount/ collection, etc. the AD
Category bank may accept the documents subject to following conditions:-
(i) The exporters concerned should produce evidence of having
received advance payment or an irrevocable letter of credit
in their favour covering the full value of the proposed
exports;
(ii) In case of usance bills, the relative letter of credit should
cover full export value and also permit such drawings.
Besides, the usance bills should also mature within
prescribed realisation period reckoned from date of
shipment.
(iii) Except under the above mentioned conditions given in 2 (a)
(i) and (ii), AD banks should not handle the shipping
documents of caution listed exporters.
(b) AD Category – I banks should obtain prior approval of the Reserve Bank for
issuing guarantees for caution-listed exporters.
Q-559: What is the meaning of export obligation?
(i) The obligations to export products cover by Advance authorisation or permission in
terms of quantity, value or both as may be prescribed or specified by Regional or
competent authority
(ii) The obligations to re-export products cover by Advance authorisation or permission
in terms of quantity, value or both as may be prescribed or specified by Regional or
competent authority
(iii) The obligations to export restricted products cover by Advance authorisation or
permission in terms of quantity, value or both as may be prescribed or specified by
Regional or competent authority.
(iv) None of the above
A-559: i - The obligations to export products cover by Advance authorisation or permission in terms
of quantity, value or both as may be prescribed or specified by Regional or competent
authority

Q-560: Which one relates to bond under Advance Authorisations which are registered at another
port?

(i) It is a manual process with an issue of a letter to Custom House where the licence is
registered and subsequently a bond debit confirmation letter is obtained and
submitted

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