Exporters welcome RBI decision to extend realisation period

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SME Times News Bureau | 21 Nov, 2012
Exporters' body Federation of Indian Export Organisations has welcomed the Reserve Bank of India's decision to extend the period of realisation and repatriation for exporters of goods and software from 6 months to 12 months from the date of export.

Extension in the repatriation period will provide relief to the exporters and will reduce the transaction time since they would no longer be required to approach authorized dealer for extension in repatriation period if it is within 12 months from the date of exports, said FIEO president Rafeeque Ahmed in a press statement.

The RBI on Tuesday had extended the period of realisation and repatriation for exporters of goods and software from 6 months to 12 months to help them deal with the global economic slowdown.

". . . it has been decided, in consultation with the Government of India, to extend the above relaxation with effect from October 1, 2012 till March 31, 2013," RBI said in a notification.

This relaxation was up to March 31, 2011.

The provisions in regard to period of realization and repatriation to India of the full export value of goods or software exported by a unit situated in a Special Economic Zone (SEZ) as well as exports made to warehouses established outside India remains unchanged.

"Such a move can also be used by the exporters as a part of marketing strategy for promoting exports by offering longer period of credit," Ahmed viewed.

India's exports fell for the sixth consecutive month in October by 1.63 per cent year-on-year, with trade deficit widening to a record $21 billion. For the first seven months (April-October) of the 2012-13 fiscal, exports have shrunk by 6.18 per cent to $166.92 billion.