Draft Letter to RBI under FEMA for Non-Realisation of Export Proceeds

 

Draft Letter to RBI under FEMA for Non-Realisation of Export Proceeds

[Your Company Letterhead]

Ref. No.: [Your Reference No.]
Date: [Insert Date]

To
The Chief General Manager,
Foreign Exchange Department,
Reserve Bank of India,
Central Office,
Fort, Mumbai – 400001.

Subject: Complaint regarding Non-Realisation of Export Proceeds under an Irrevocable Letter of Credit – Request for Intervention under FEMA Guidelines

Respected Sir/Madam,

We, M/s. [Your Company Name], an exporter registered under the Directorate General of Foreign Trade (IEC: [Insert IEC No.]), wish to bring to your kind attention a serious issue concerning non-realisation of export proceeds in connection with a shipment made to a buyer in Bangladesh under an irrevocable Letter of Credit.

1. Export Transaction Details:

• Buyer’s Name: M/s. [Name of Bangladeshi Buyer]
• Buyer’s Address: [Full Address, Bangladesh]
• L/C No.: [Insert L/C Number]
• Issuing Bank: [Full Name and Address of Bangladeshi Bank]
• L/C Date: [Insert Date]
• L/C Amount: USD [Amount]
• Shipment Date: [Insert Date]
• Invoice No. and Date: [Insert Details]
• Port of Loading / Destination: [Insert Details]
• Description of Goods: [Brief description]
• Shipping Document Submitted On: [Date]

2. Issue at Hand:

Although we submitted all documents strictly in accordance with the L/C terms, and the goods were received and acknowledged by the Bangladeshi buyer, the issuing bank has failed to honour the payment obligation under the said Letter of Credit till date.

We had routed all documents through our Authorised Dealer Bank, viz., [Name of Indian Bank, Branch Address], who have also corresponded with the issuing bank but to no avail. Despite repeated follow-ups, we have not received any payment.

3. Violation of FEMA Provisions:

As per Section 8 of FEMA, 1999, and RBI Master Direction No. 16/2015-16 on Export of Goods and Services, export proceeds must be realised within 9 months from the date of export. This period has either already lapsed or is about to lapse imminently, putting us in an untenable situation.

4. Efforts Made:

• We have written multiple times to the issuing bank.
• Our Indian bank has initiated follow-up communication.
• We have informed the Indian High Commission in Bangladesh, and have filed a preliminary report with DGFT.
• Despite these steps, there has been no payment, no valid reason for dishonour, and no response from the buyer or the issuing bank.

5. Prayer for RBI Intervention:

In view of the above, we most humbly request your good office to:

• Direct our Authorised Dealer Bank to take immediate remedial action, including invoking UCP 600 protest mechanisms.
• Take up the matter through appropriate diplomatic or inter-governmental trade channels with Bangladesh Bank or concerned authorities.
• Provide necessary instructions regarding reporting in XOS, and permit any permissible legal recourse.
• Prevent the transaction from being classified as a FEMA violation from our end, as we have made all reasonable efforts to recover the dues.

We are enclosing herewith the following documents for your ready reference:

1. Copy of the Letter of Credit
2. Export Invoice and Packing List
3. Bill of Lading / Shipping Documents
4. Bank forwarding letter and submission proof
5. Correspondence with buyer and issuing bank
6. Copies of communications with our Indian bank and Indian High Commission

We look forward to your kind assistance in this matter.

Thanking You,
Yours faithfully,
For [Your Company Name]

[Signature]
[Name of Authorised Signatory]
[Designation]
[Contact Details]
[Email ID]
[Mobile No.]

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