In a move welcomed by the GJEPC, the Reserve Bank of India (RBI) has issued a notification allowing banks to close outstanding small-value shipping bills in the Export Data Processing and Monitoring System (EDPMS). Notably, under its initiative to streamline retail exports via e-commerce, GJEPC has been advocating for the introduction of a de-minimis threshold for regularising shipping bills.
The dispensation, applicable until March 31, 2025, allows Authorised Dealer (AD) Category-I banks to close shipping bills valued at USD 1,000 (or its Indian rupee equivalent) subject to certain conditions. These conditions include verification of the transaction’s legitimacy (bona fide), receipt of export funds, and adherence to Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT) regulations. Additionally, the exporter should not be under any investigations or court cases related to these transactions.
Mr. Vipul Shah, Chairman, GJEPC, said, “GJEPC has been advocating for a ‘de-minimis threshold’ to simplify the process of regularising shipping bills for small value exports. This RBI notification is seen as a positive initial step towards achieving that goal. The streamlining of this process is expected to benefit a significant number of gem and jewellery exporters, particularly those engaged in e-commerce, by reducing administrative burdens and expediting the closure of outstanding bills.”