Bank charge for closing shipping bill too high for ecommerce seller in India.

[calc1991]

Bank is charged a lot of money to realize the export process.  Which is too much for us. Please send the below letter  format by mail to all the institution like RBI, Ministry of finance, Ministry of commerce, DGFT, Customs.

May be in next guidelines or FTP they will change the realize process or reduce the charge. Otherwise we shall force to close our business in near future.

Date:14.08.2021

To,

Sub: Regarding compulsion of EDPMS and closing of shipping bill with the AD Bank and the high bank charges imposed by the AD Banks.

Respected Sir,

            This is to request you to look to into the matter regarding compulsion of EDPMS and closing of the shipping bill with the AD Banks and the high bank charges imposed by the AD Banks upon us. This is state that we are exporting in small quantities and amount, less than a value for Rs. 25000.00 through online portals like e-bay/Amazon and are shipped through courier/India post in CSB-V.  This is to further state that the payments are received in advance through Online Gateway Payment System(OPGSP) like paypal/payoneer. This is to inform that AD Banks are charging an average of Rs. 1500.00-2000.00 as bank charges per shipping bill for EDPMS and closing of the shipping bills which is very high in respect to our monetary volume  of the business which ranges an average invoice value for Rs. 1500.00 to Rs. 5000.00. Hence the bank charges for the above is unbearable for us.

            This is to describe you that International market is a competitive one and to compete there the price should be competitive one. You are requested to look into the matter regarding the modification of the charges imposed by the banks for the above service or modification of the system of uploading the above procedure so that the matter becomes cost effective for us, otherwise it has become difficult for us to continue with the business.

Thanking you,

Yours sincerely,

[in_news_team]

Dear calc1991,

Please note that these charges are completely at the discretion of the bank. Hence it would be best that you please connect with your respective bank to discuss this further.

We understand that this may not be the solution you are looking for and do regret the inconvenience faced by you.

Regards,

eBay IN CBT Team

[muteyaar]

Hi,

I am also having this same problem.

Bank is charging too much per each shipping bill and I have hundreds of pending bills on EDPMS.

Did you find any solution for this?

please let me know.

[electro-international]

I hope this post finds you all well. I am an E-commerce exporter just like many of you, and I have been facing a bit of a challenge with handling my CSBV exports shipping bills and generating e-BRCs. Specifically, I use ICICI Bank's Trade Online software, which is quite helpful in managing my pending import and export submissions. However, I have encountered some issues that I hope some of you may be able to shed some light on.

Recently, Trade Online started displaying a list of CSBV shipments dating back to 1st April 2023 (please see the attached image). Now, my main concern revolves around matching the funds with the Digital FIRC's I receive from Payoneer, which is my chosen payment platform.

Payoneer deducts various fees, such as their commission, eBay fees, and store fees, before refunding the remaining amount. Let me illustrate this with an example. Suppose I received an order on eBay worth 1000 USD on 2nd April 2023. My logistics billing for the previous month (March 2023) was 600 USD, and the store renewal fees for April 2023 amount to 50 USD. Payoneer's commission on the 1000 USD order is 123 USD. Hence, the total payout after these deductions is 227 USD.

Now, my concern is how to properly close the export bill of 1000 USD when I've only received 227 USD. It seems quite perplexing, and I'm wondering if anyone else has encountered such a situation or has any advice on how to handle it efficiently.

Additionally, I've noticed that there are several missing FIRC's that are not showing up on the Payoneer site under "Get your Digital FIRC's." I've reached out to Payoneer multiple times, sending requests and reminders, but unfortunately, no solution has been provided yet.

If any of you have faced similar issues or have insights into handling these matters effectively, I would greatly appreciate your input. Please share your experiences or solutions in the comments section. Let's support each other as a community of exporters, helping each other overcome challenges and ensuring smooth operations for our businesses.

Thank you all for your time and assistance!

[moon.internationals]

Can you tell us about which logistic partner you are using ? and which platform you are using to ship? 

[electro-international]

Currently, we have established partnerships with both FedEx and DHL, two globally recognized logistics companies known for their reliability and efficiency. These partnerships allow us to offer our customers a seamless and reliable shipping experience.

In terms of our shipping methods, we exclusively utilize eBay's Global Shipping Program (EGS) for all our orders. eBay's Global Shipping Program has proven to be a valuable tool for us, simplifying the international shipping process and ensuring that our customers receive their orders promptly and in good condition. EGS provides end-to-end tracking and customs clearance, giving us and our customers peace of mind throughout the shipping process.

[easternhub]

Hello,

I'm a bit relieved that I'm not the only one facing issues with my Ad Bank.

I'm an e-commerce exporter selling through eBay and Amazon. On December 25th, 2022, we received a call from our bank informing us that we have pending shipping bills that are not closed, and we need to close them as soon as possible within 7 days, or the ED will inquire about it. This news caused me immense stress as I had never heard of such a thing before. I reached out to the bank, and there were 40 shipping bills pending.

As a small exporter, our monetary volume of the business ranges from an average invoice value of Rs 1000 to Rs 5000 and Closing one shipping bill and generating a Bank Realization Certificate (BRC) costs about Rs 1200 plus GST, because of the Digital FIRC given by Payoneer is not a real FIRC but a "Non Objection Certification for Issuance of FIRC/FIRA" and to create a FIRC it will cost Rs 200 plus GST for each invoice. Furthermore, using this FIRC it costs Rs 445 plus GST for creating an Export Bill Collection Document. If we are late in submitting these documents, the late fee will be Rs 550 plus GST.

Completing this task seems impossible, as the bank is requesting invoices, AWB copies, order details, shipping bill copies, exchange rate information, eBay withdrawal details, and an Excel document explaining all the fees associated with eBay and Amazon. Even after providing all this information, the bank still fails to create the FIRC, As they say that RBI can only accept for a minimum of 5-10% of the charges.

Let me explain, Payoneer deducts various fees, including their commission, eBay fees, and store fees, before sending the remaining amount. Allow me to illustrate this with an example. Suppose I received an order on eBay worth 1000 USD. My logistics billing for the previous month was 600 USD, and the store renewal fees for previous month amount to be 50 USD. Payoneer's commission on the 1000 USD order is 123 USD. Therefore, the total payout after these deductions is 227 USD.

Now, I'm even more concerned about how to close a bill of 1000 USD when I've only received 227 USD.

As of Now I have decided to not clear any shipping bills and I surely believe that there will be an update regarding this issue, Banks should understand our business easily and there should be no charges or less charges for e-com exporters.

Best regards,
Bhavesh Chouhan

[anupsurgicalworks]

I am also in the same situation, and I have closed my account in bank and I don't know whether I have done correct or not.

[in_news_team]

Dear Seller,

Thanks for bringing this issue to our notice.

We acknowledge your feedback about few process gaps regarding electronic bank realization certificate (“eBRC”) including the imposition of higher processing fees charged by the banks and requirement of various documents.

We agree that these issues are hindering the growth of e-commerce exports from India. We will submit your feedback and inputs with the relevant government department for their kind attention and consideration to resolve it. We appreciate your patience.

Regards,

Team eBay     

[suman-export-import]

Same issue and all of ecommerce exporters who know this problem in-depth are facing these issues. Those who are not facing this issue, that is because they are unaware of the problem or doing it with loop hole. they will also know this issue very soon once they start getting notices either from the Banks or RBI. Ebay is fulfilling it's compliance, shipping company is fulfilling it's own compliance but sellers can't sell with fulfilling all the compliance as per the RBI Guidelines as there is an issue with ecommerce export structure. Ebay, all the assigned managers, Shipping Companies, Payoneer & Banks, all are simply unaware about this and will not follow up if we ask these kind of questions. sometimes, they come up with answers which will not make sense at all. Only ICICI bank is close to understand these issues but their variant is that expensive that not every seller can afford their bank account and maintain that kind of balance..