(i) In terms of Section 18(9) of FERA 1973, Reserve Bank may subject exports of certain exporters who have come to its adverse notice in regard to realisation of export value, to the conditions stipulated in clauses (b) and (d) thereof, in order to ensure that the full export value of further exports to be made by them will be realised in proper time or without delay as required under the law. In such cases, Reserve Bank will issue caution-listing order directing that the exporter should submit GR/PP form through an authorised dealer to Reserve Bank for its prior approval, supported by documentary evidence to show that the exporter has received advance payment or an irrevocable letter of credit in his favour covering the full value of goods to be exported. Copies of the caution-listing order will be furnished, among others, to all Customs authorities in India, for the purpose of ensuring that the conditions of the order are fulfilled. Authorised dealers will also be advised whenever exporters are caution-listed. Authorised dealers should not accept for negotiation/collection shipping documents covering exports declared on GR forms completed by such exporters nor countersign PP forms completed by them unless the GR/PP forms bear approval of Reserve Bank. If a caution-listed exporter presents documents to an authorised dealer together with the GR form which does not bear the approval of Reserve Bank, authorised dealer should withhold the documents and not handle them in any manner without prior approval of Reserve Bank.

(ii) Ordinarily, Reserve Bank will include in the caution-listing order, not only the names of the exporters (including proprietor/partners in case of firms) but also their associate concerns. If authorised dealers come to know of other associate firms of a caution-listed exporter who are in the export field, they should bring the matter to the notice of Reserve Bank promptly.

(iii) When firms and companies included in the caution-list are removed from the list by Reserve Bank, the relative de-caution-listing order will also be forwarded to Customs authorities and authorised dealers will also be advised. Shipping documents etc. submitted by de-caution-listed exporters may be dealt with by authorised dealers according to normal regulations.