(i) When goods have been exported on consignment basis at the risk of exporter for sale and eventual remittance of sale proceeds to him by the agent/consignee abroad, authorised dealer, while forwarding shipping documents to his overseas branch / correspondent, should instruct the latter to deliver them only against trust receipt/undertaking to deliver sale proceeds by a specified date which should be within the period prescribed for realisation of proceeds of the export. This procedure should be followed even if according to the practice in certain trades, a bill for part of the estimated value is drawn in advance against the exports.

(ii) The agents/consignees may deduct from sale proceeds of the goods expenses normally incurred towards receipt, storage and sale of the goods, such as landing charges, warehouse rent, handling charges, etc. and remit the net proceeds to the exporter.

NOTES: A. In case of goods exported on consignment basis, freight and marine insurance must be arranged in India.

B. In order to enable Indian exporters to arrange off-the-shelf sales for achieving greater penetration of overseas export markets, some Indian organisations have been permitted by Reserve Bank to establish warehouses for stocking the goods. Considering various stages in the cycle of despatch of merchandise to an overseas warehouse for eventual sale to buyers from different parts, the prescribed period for realisation of proceeds of export consignments to any Indian-owned warehouse established abroad with the permission of Reserve Bank has been fixed at fifteen months from the date of shipment.

C. Reserve Bank will permit, on application, exporters with satisfactory track record a longer period up to twelve months for realisation of export proceeds for exports on consignment basis made to CIS countries and East European countries financed in any permitted currency.

(iii) The Account Sales received from the Agent/Consignee should be verified by the authorised dealer before it is sent to Reserve Bank along with the relative duplicate GR/PP forms. Deductions in Account Sales should be supported by bills/receipts in original except in case of petty items like postage/cable charges, stamp duty etc.