TaxTMI 
TaxTMI 
TaxTMI 
Export of Goods and Services - Project Exports
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....eferred payment terms or in execution of a turnkey project or a civil construction contract requires prior approval of the approving authority, which shall consider the proposal in accordance with the guidelines issued by Reserve Bank from time to time. 2. With a view to simplifying and rationalising procedures, the Memorandum of Instructions on Project and Service Exports (PEM) has been revised. A copy of the revised Memorandum is enclosed. The major changes incorporated in the revised Memorandum are annexed. 3. Authorised Dealers may bring the revised guidelines in the Memorandum to the notice of their constituents concerned. 4. The directions contained in the Memorandum have been issued under Section 10(4) and Section 11(1) of t....
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....n. 3. Periods of Deferred Credit Period for which deferred credit may be offered by the exporter was linked to the value and type of the contract. The period of deferred credit can now be determined by the exporter and his banker in mutual consultation on merits of each case and on the basis of their commercial judgement. However, consumer durables and miscellaneous engineering goods (Part B of the list in Annexure I) should ordinarily continue to be exported on 'cash' terms. 4. Conditions necessary for clearance of proposals by authorised dealers / Exim Bank. At present, proposals which deviate from the stipulated conditions regarding advance / down payment, type of security for the contract etc. are referred to E....
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....to India exceeded one year from the date of such remittance. Approving authority viz. authorised dealer/Exim Bank/Working Group can now allow such remittance even if it exceeds 5 per cent of the contract value on the basis of cash flow position of the project / service export proposal. The period of repatriation can also be determined by the approving authority. Concerned exporter will however, be required to submit an undertaking to the authorised dealer to repatriate the amount within the period determined by the approving authority. Fulfilment of the undertaking by the exporter will need to be monitored by the authorised dealer who allows remittance and he is also required to monitor the project. 8. Third Country Purchases Au....
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....ed dealer. Requisite GR/SDF Form approval may be granted by authorised dealer. Fulfilment of the undertaking by the exporter will need to be monitored by the authorised dealer. 10. Intimation Regarding Approval of the Contract Copies of approval letters in respect of Project and Service Export contracts cleared by authorised dealers were required to be forwarded by the concerned authorised dealer to the concerned Regional Office of Reserve Bank and all the members of the Working Group. Copies of such approvals may henceforth be sent to the Regional Office of Reserve Bank and in addition, to Exim Bank and ECGC only if their participatory interest by way of funded / non-funded facilities, insurance / risk cover, etc. is involved. ....
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....ject. Copies may also be forwarded to Exim Bank / ECGC in all cases where their participation in the project finance / facilities, risks, etc. is involved. In the case of project export proposals approved by the Working Group, copies of the application, etc. may be forwarded to Exim Bank and ECGC. 13. Sale of Equipment Exported on Re-import Basis, etc. Equipment taken out of the country on reimport basis is required to be reimported to the country. However, if the equipment is sold abroad / given on hire basis, documentary evidence showing repatriation of entire sale proceeds or hire charges of equipment given on hire basis to other contractors abroad is required to be submitted to Reserve Bank. Such evidence will now be submitted ....
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....€¢ Intimate the account number, name of the bank, place and country where such account is opened within 15 days from the date of opening of such account. • Statement of operations on the account should be on half yearly basis. • Bank certificates evidencing the amount repatriated, periodically. • Closure of foreign currency account with bank certificates evidencing transfer of balance to India immediately on completion of the relevant contract. 17. Foreign Currency Account in India Approving authority of the overseas contract i.e. Authorised Dealer/Exim Bank/Working Group can now allow project/service exporters to open, hold and maintain foreign currency account in Indi....