If after a bill has been negotiated or sent for collection, the amount thereof is desired to be reduced for any reason, authorised dealer may approve such reduction,on submission of an application by a letter with full particulars of shipment, an attested copy of invoice and documentary evidence in support of the reduction sought for, provided:
(a) the reduction does not exceed 10% of invoice value
(b) it does not relate to an export of
(i) gold or silver jewellery or articles made out of cut and polished diamonds,
(ii) commodities or subject to floor price stipulations, and
(iii) the exporter is not on the exporters caution list of Reserve Bank.
(c) the exporter should be advised to surrender proportionate export incentives availed of, if any.
In the case of exporters who have been in the export business for more than three years, reduction in invoice value may be allowed, without any percentage ceiling, subject to the above conditions as also subject to their track record being satisfactory i.e. the export outstandings do not exceed 5% of the average annual export realisations during the preceding three calendar years. For this purpose, the exporters declaration, duly certified by his auditor or by a Chartered Accountant, indicating the total export realisations during each of the preceding three calendar years and the export bills outstanding beyond the prescribed period for realisation of export proceeds and average outstandings in absolute and percentage terms would be required to be furnished. For the purpose of reckoning the percentage of outstanding export bills to average export realisations during the preceding three calendar years, outstanding export bills in respect of exports made to countries facing externalisation problems may be ignored provided the payments have been made by the buyers in the local currency. Authorised dealers should obtain the above declaration duly certified, as on January and July every year.