There are remedies available for nonpayment of exports. Learn more


The trade in goods and services has increased dramatically during the globalization era, as well as other economic reforms and relaxations made by governments. As evidenced by the growing exports of goods, India is just one example of a country that has greatly benefited from globalization. Despite the many benefits of exporting goods and services, Indian exporters might face risks. One such chance is delayed or nonpayment of exports. This article will discuss the options available to aggrieved Indian exporters when a defaulting importer delay or fails to pay for exports.

Statutory provisions

The Foreign Exchange Management Regulations (Export of Goods and Services), 2015 outlines the rules for exporting goods and services from India. Regulation 2 (iv) defines export as the taking or sending goods by land or sea to a foreign country. It also includes sales, leases, hire purchases, and other arrangements. Software export also provides for the transmission of data through electronic media. Regulation 8 deals with how to pay the export value of goods. It states that payment must be made through an authorized dealer in accordance with the Foreign Exchange Management (Manners of Receipts and Payments) Regulations 2000. As explained in this regulation, the re-importation into India within the specified period for realization of export value of exported goods, for which a declaration has been made under Regulation 3, will be considered realization of the entire export value. As per Regulation 9, the export value of goods/software/ services must be realized and repatriated back to India within the nine-month period or such other time frame as the Reserve Bank of India may determine in consultation with Government. This provision may be subject to exceptions in certain cases.

Dealing with a foreign country can lead to delays in payment or nonpayment for exports. Regulation 14 of Foreign Exchange Management (Export Of Goods and Services Regulations, 2015 addresses situations where payment delays. The R.B.I. can issue directions to secure payment if delayed payment occurs. The R.B.I. may issue recommendations for securing payment if the situation needs to be clarified.

Other Remedies

Exporters can also contact key Indian organizations if they are unable to pay export proceeds. The Directorate-General of Foreign Trade created the Quality Complaints and Trade Disputes online platform to help exporters and importers resolve trade disputes. The DGFT process is relatively easy. A complainant exporter can file a claim on the DGFT website. Click the Services tab to the Quality Complaints and Trade Disputes Section. Upload all relevant documents to support the claim. The complaint is then forwarded to the Indian Mission Abroad (I.M.A.) of the country in question. A complaint may be filed with the Federation of Indian Export Organisations. After an inquiry, the FIEO or the DGFT blocks any errant importer.

An aggrieved exporter can also file a complaint to the Indian Embassy in the importer’s country. This will allow the trade wing of the country where the importer lives to press the relevant trade organizations to take legal action against him.

International commercial arbitration may be used to resolve trade disputes. This can be costly, especially for small businesses.

Exporters can approach M.A.H. International with the correct documentation and support communication. International Corporation in Switzerland. Most importers will pay the outstanding amounts to avoid any reputation damage. This process can be costly both financially and in time.

The Export Credit Guarantee Corporation (ECGC), which approves insurance coverage, is a great option for novice exporters who have shipped goods and have yet to receive payment. The Export Credit Guarantee Corporation with its network of connections finds the true cause of the default after the exporter is reimbursed. If the ECGC’s investigation report does not meet with expectations, any importer or firm will be removed from the list and information circulated to all international associates. The implication would be that the buyer cannot buy/import goods from any other suppliers/sellers/exporters on a credit basis.


It can be concluded that an Indian exporter aggrieved by nonpayment from a foreign importer for exports made has many legal remedies and other options to ensure that he/she gets the export proceeds without any hassles. It is important that the aggrieved foreign exporter, while challenging nonpayment for exports, can provide sufficient supporting documentation, as and when necessary.

Leave a Reply

Your email address will not be published. Required fields are marked *