Understanding of Export Data Processing and Monitoring System (EDPMS) and its proceedings with exporter

What is EDPMS?

• The EDPMS (Export Data Processing and Monitoring System) is a platform used by banks in India to report export transactions. Issues with EDPMS can arise due to various reasons, such as data entry errors, technical glitches, incomplete or incorrect information, or regulatory compliance discrepancies.
• Under the system, the banks download the shipping bills or softex forms issued by export agencies such as customs, special economic zones (SEZ) and Software Technology Parks of India (STPIs), bill of entry issued by ports.
• This data is then matched with the data on inward remittance of export proceeds from the exporting company.
• The data set allows banks to immediately track the status of each consignment exported with all instruments and also allows exporters to claim benefits faster.
• It has been cited as an example of improved foreign trade operations done by India and has contributed to the country’s improved score in the Ease of Doing Business index.
• With the help of this system, the Reserve Bank of India can gather critical data regarding export bills. This information helps in identifying the number of dollar remittances that are meant for India but are floating abroad. Furthermore, this data can help in determining the extent of hedging against the Indian currency, aiding the RBI in managing Forex market operation

Procedures under the Export Data Processing and Monitoring System

• AD banks can suggest the inclusion of any exporter in the caution list based on their track record with the bank and the investigative body.
• These banks can recommend to the concerned Regional Office of RBI’s Foreign Exchange Department if any exporter is detrimental to these following agencies:
  1. Central Bureau of Investigation ( CBI )
  2. Directorate of Revenue Intelligence (DRI)
  3. Enforcement Directorate ( ED )
  4. Other similar law enforcement agencies
• In addition, these banks can recommend:
  1. Any exporter is untraceable or
  2. Is not making genuine efforts to register the paid or payable export proceeds
• However, AD banks can also recommend the de-caution-listing of an exporter to the RBI’s Regional Office.

Remedies for exporters to resolve the issues.

1. Reduction in Invoice Value

If, after a bill has been negotiated or sent for collection, its amount is to be reduced for any reason, the bank may approve such reduction, if satisfied with the genuineness of the request subject to the other conditions of bank

2. Extension of Time

The RBI has permitted the banks to extend the period of realization of export proceeds beyond the stipulated period of realization from the date of export, up to a period specified, at a time, irrespective of the invoice value of the export subject to other conditions:

3. Write off of export bills

An exporter who has not been able to realize the outstanding export dues despite best efforts, may either self-write off or approach the bank, who handled the relevant shipping documents, with appropriate supporting documentary evidence with a request for the write-off of the unrealized portion subject to the fulfillment of stipulations regarding the surrender of incentives before” write-off”

In case of self-write-off, the exporter should submit to the concerned bank, a Chartered Accountant’s certificate, indicating the export realization in the preceding calendar year and also the amount of write-off already availed of during the year, if any, the relevant EDF to be written off, Bill No., invoice value, commodity exported, country of export. The CA certificate may also indicate that the export benefits, if any, availed of by the exporter have been surrendered.