Set-off of export receivables against import payables is allowed by the RBI subject to following terms and conditions:

1)     If the import is as per the FT Policy in force.

2)     If invoices / B.L / AWB and EC copies of Bills of Entry for home consumption have been submitted by the importer to the bank.

3)     If payment for the import is still outstanding in the books of the importer.

4)     If set-off of export receivables against import payments should be in respect of the same overseas buyer and supplier and that consent for set-off has been obtained from him.