I (Meaning and importance of Exports) Unit Structure

12.8 REALIZATION OF EXPORT PROCEEDS 
Payment against exports should be realized only through an 
authorized dealer. No payment can be received even through bank 
drafts and cheques, unless exempted otherwise by RBI. 
The following are the steps in realizing export proceeds. 
1) Approaching a Bank 
– 
After dispatch of goods, either by sea, or by air, the exporter 
should approach his bank with a formal request to realize sale 
proceeds from the foreign buyer.

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It is obligatory to submit the shipping documents to an 
authorized dealer with 21 days of the date of shipment. In India, the 
exporters have to realize the full value of exports within 180 days 
from the date of shipment. 
2) Submission of documents to the bank 
– 
The exporter should submit the various documents such as 
Bill of Exchange, Full set of bill of Lading, commercial invoice 
copies, certificate of origin, Insurance policy, Inspection certificate, 
packing list, G R Bank certificate and other certificate. 
3) Verification of documents 
– 
The bank will verify the documents to find whether the 
required documents are in order, whether the required documents 
are attested by customs and other. 
4) Letter of Indemnity 
– 
The exporter can collect advance payment from his banker 
by signing a letter of indemnity. The understanding is in case the 
buyer‟s bank does not release the payment, the exporter will refund 
the money with accrued interests to the bank.
5) Discounting of Bills 
– 
The bank may discount or purchase the bills drawn against 
L/C amount, and make immediate payment to the exporter, if so 
required. 
6) Despatch of documents 
– 
The details and the mode of dispatch of the shipping 
documents are specified in the L/C. negotiating, in this sense, 
implies mailing or dispatching a set of documents to ensure that the 
importer or his agent receives the same in time so that he can 
present them to the port authorities and claim delivery of the 
exported goods.