In a directive issued last week, which ET has seen, banks have been asked to do away with a compliance related to the realisation of exports for which exporters have to pay a fee. The move will benefit ecommerce shipments, most of which are less than $1,000.
At present, routing of courier shipping bills is done through Export Data Processing and Monitoring System (EDPMS), which allows banks to match inward remittances against the shipping bills of exporters.
This closure process is cumbersome and costly as banks charge ₹1,000-2,000 per shipping bill for reconciliation.
For small-value packages, these charges erode profits.
“With the routing of courier shipping bills through the EDPMS, the outstanding entries for small-value shipping bills has increased considerably and is now the major component of the outstanding shipping bills in the EDPMS,” RBI said.An email sent to RBI didn’t elicit a response till press time.The simplification will help close the export reconciliation process based on exporters’ statements without banks having to issue an Electronic Bank Realisation Certificate.
“This is a welcome move as it will bring great relief to all small exporters particularly ecommerce exporters as it lowers compliance costs,” said Ajay Sahai, director general, Federation of Indian Export Organisations. The revised dispensation, applicable until March 31, 2025, includes verification of the transaction’s legitimacy, receipt of export funds and adherence to know your customer, anti-money laundering and combating the financing of terrorism regulations. Also, the exporter should not be under any investigations or court cases related to these transactions to be eligible for the simplified process.
Vipul Shah, chairman, GJEPC, said this de-minimis threshold will simplify the process of regularising shipping bills for small-value exports and benefit gem and jewellery exporters, particularly those engaged in ecommerce.