TaxTMI 
TaxTMI 
Master Circular on Export of Goods and Services
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....of Receipt and Payment. B.3 Realisation and Repatriation of export proceeds. B.4 Foreign Currency Account .... B.5 Diamond Dollar Account (DDA). B.6 Exchange Earners' Foreign Currency (EEFC) Account. 3355557700 9 B.7 Setting up of Offices Abroad and Acquisition of Immovable Property for Overseas Offices. 10 B.8 Advance Payments against Exports 11 B.9 GR Approval for Trade Fair/Exhibitions abroad .12 B.10 B.11 GR approval for Export of Goods for re-imports Part Drawings /Undrawn Balances.. 13 13 B.12 Consignment Exports ....... 14 B.13 Opening / Hiring of Ware houses abroad 15 B.14 B.15 Direct dispatch of documents by the exporter Invoicing of Software Exports. 15 17 B.16 B.17 Short Shipments and Shut out Shipments. Counter-Trade Arrangement.. 18 18 B.18 Export of Goods on Lease, Hire, etc. 19 B.19 Export on Elongated Credit Terms.. 19 B.20 B.21 Export of goods by Special Economic Zones (SEZs). Project Exports and Service Exports. 19 20 B.22 Export of Currency... 21 B.23 Forfaiting....... .22 B.24 B.25 Exports to neighbouring countries by Road, Rail or River Border Trade with Myanmar.. 22 .23 B.26 Repayment of Sta....
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....om time to time. (ii) AD Category – I banks may conduct export transactions in conformity with the Foreign Trade Policy in vogue and the Rules framed by the Government of India and the Directions issued by Reserve Bank from time to time. In exercise of the powers conferred by clause (a) of sub-section (1) and sub-section (3) of Section 7 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank has notified the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 relating to export of goods and services from India, hereinafter referred to as the 'Export Regulations'. These Regulations have been notified vide Notification No. FEMA 23/2000-RB dated May 3, 2000, as amended from time to time. (iii) The Directions contained in this Circular should be read with the Rules notified by the Government of India, Ministry of Finance, vide Notification No.G.S.R.381 (E) dated May 3, 2000, (Annex - 1) as also Regulations notified by Reserve Bank vide its Notification No. FEMA 23/2000-RB dated May 3, 2000, as amended from time to time (Annex - 2). (iv) In terms of Regulation 4 of the Foreign Exchange....
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....the average annual exports of the applicant during the preceding three financial years subject to a ceiling of Rs.5 lakhs. For status holder exporters, the limit as per the present Foreign Trade Policy is Rs.10 lakhs or 2 per cent of the average annual export realization during the preceding three licensing years (April-March), whichever is higher. (ii) Export of goods not involving any foreign exchange transaction directly or indirectly requires the waiver of GR/PP procedure from the Reserve Bank. B.2 Manner of Receipt and Payment (i) The amount representing the full export value of the goods exported shall be received through an AD Bank in the manner specified in the Foreign Exchange Management (Manner of Receipt & Payment) Regulations, 2000 notified vide Notification No. FEMA. 14/2000-RB dated May 3, 2000 (Annex-3) in the following manner: a) Bank draft, pay order, banker's or personal cheques. b) Foreign currency notes/foreign currency travellers' cheques from the buyer during his visit to India. c) Payment out of funds held in the FCNR/NRE account maintained by the buyer d) International Credit Cards of the buyer. Website: www.fema.rbi.org.in 5 Email trade....
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....U mechanism. B.3 Realisation and Repatriation of export proceeds It is obligatory on the part of the exporter to realise and repatriate the full value of goods or software to India within a stipulated period from the date of export, as under : B.4 (i) By Units in Special Economic Zones (SEZs): No specific time period has been stipulated; (ii) (iii) (iv) (V) (i) By Status Holder Exporters as defined in the Foreign Trade Policy : Within a period of twelve months from the date of export; By 100 % Export Oriented Units (EOUS) and units set up under Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Biotechnology Parks (BTPs) schemes: Within a period of twelve months from the date of export on or after September 1, 2004; Goods exported to a warehouse established outside India: As soon as it is realised and in any case within fifteen months from the date of shipment of goods; and In all other cases: With effect from June 3, 2008, this period of realization and repatriation to India has been enhanced to twelve months from the date of export till March 31, 2011. Foreign Currency Account Participants in international exhibition/tra....
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....Account (DDA) Under the scheme of Government of India, firms and companies dealing in purchase / sale of rough or cut and polished diamonds / precious metal jewellery plain, minakari and / or studded with / without diamond and/or other stones, with a track record of at least 2 years in import / export of diamonds / coloured gemstones / diamond and coloured gemstones studded jewellery / plain gold jewellery and having an average annual turnover of Rs. 3 crores or above during the preceding three licensing years (licensing year is from April to March) are permitted to transact their business through Diamond Dollar Accounts. (ii) They may be allowed to open not more than five Diamond Dollar Accounts with their banks. (iii) Eligible firms and companies may apply for permission to their AD Category - I banks in the format prescribed. B.6 (i) (ii) Exchange Earners' Foreign Currency (EEFC) Account A person resident in India may open with, an AD Category - I bank in India, an account in foreign currency called the Exchange Earners' Foreign Currency (EEFC) Account, in terms of Regulation 4 of the Foreign Exchange Management (Foreign Currency Account by a Person Residen....
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....lowing terms and conditions: Website: www.fema.rbi.org.in 10 Email [email protected] 11 of 110 a) the overseas branch/office has been set up or representative is posted overseas for conducting normal business activities of the Indian entity; b) the overseas branch/office/representative shall not enter into any contract or agreement in contravention of the Act, Rules or Regulations made there under; c) the overseas office (trading / non-trading) / branch / representative should not create any financial liabilities, contingent or otherwise, for the head office in India and also not invest surplus funds abroad without prior approval of the Reserve Bank. Any funds rendered surplus should be repatriated to India. (iii) The details of bank accounts opened in the overseas country should be promptly reported to the AD Bank. (iv) AD Category - I banks may also allow remittances by a company incorporated in India having overseas offices, within the above limits for initial and recurring expenses, to acquire immovable property outside India for its business and for residential purpose of its staff. (v) The overseas office / branch of software exporter compan....
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....e outside India without the prior approval of the Reserve Bank. Unsold exhibit items may be sold outside the exhibition/trade fair in the same country or in a third country. Such sales at Website: www.fema.rbi.org.in Email [email protected] 12 13 of 110 discounted value are also permissible. It would also be permissible to `gift' unsold goods up to the value of USD 5000 per exporter, per exhibition/trade fair. AD Category - I banks may approve GR Form of export items for display or display- cum-sale in trade fairs/exhibitions outside India subject to the following: (i) (ii) (iii) The exporter shall produce relative Bill of Entry within one month of re- import into India of the unsold items. The sale proceeds of the items sold are repatriated to India in accordance with the Foreign Exchange Management (Realisation, Repatriation, and Surrender of Foreign Exchange) Regulations, 2000. The exporter shall report to the AD Category - I banks the method of disposal of all items exported, as well as the repatriation of proceeds to India. (iv) Such transactions approved by the AD Category - I banks will be subject to 100 per cent audit by their internal in....
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.... procedure should be followed even if, according to the practice in certain trades, a bill for part of the estimated value is drawn in advance against the exports. The agents/consignees may deduct from sale proceeds of the goods expenses normally incurred towards receipt, storage and sale of the goods, such as landing charges, warehouse rent, handling charges, etc. and remit the net proceeds to the exporter. The account sales received from the Agent/Consignee should be verified by the AD Category - I banks. Deductions in Account Sales should be supported by bills/receipts in original except in case of petty items like Website: www.fema.rbi.org.in Email [email protected] 14 15 of 110 (iv) postage/cable charges, stamp duty, etc. In case of goods exported on consignment basis, freight and marine insurance must be arranged in India. AD Category - I banks may allow the exporters to abandon the books, which remain unsold at the expiry of the period of the sale contract. Accordingly, the exporters may show the value of the unsold books as deduction from the export proceeds in the Account Sales. B.13 Opening / Hiring of Ware houses abroad AD Category - I....
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....duplicate copy of the GR form is submitted to the AD banks for monitoring purposes, by the exporters within 21 days from the date of shipment of export. AD Category - I banks may regularize cases of dispatch of shipping documents by the exporter direct to the consignee or his agent resident in the country of the final destination of goods, up to USD 1 million or its equivalent, per export shipment, subject to the following conditions: a) The export proceeds have been realised in full. Website: www.fema.rbi.org.in 16 : Email [email protected] 17 of 110 b) The exporter is a regular customer of AD Category - I bank for a period of at least six months. c) The exporter's account with the AD Category - I bank is fully compliant with the Reserve Bank's extant KYC / AML guidelines. d) The AD Category - I bank is satisfied about the bonafides of the transaction. In case of doubt, the AD Category - I bank may consider filing Suspicious Transaction Report (STR) with FIU_IND (Financial Intelligence Unit in India). B.15 Invoicing of Software Exports (i) For long duration contracts involving series of transmissions, the exporters should bill their overse....
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....d duplicate copy of the GR form. In this case, the original GR form received earlier from Customs will be cancelled. If the shipment is made subsequently, a fresh set of GR form should be completed B.17 Counter-Trade Arrangement Counter trade proposals involving adjustment of value of goods imported into India against value of goods exported from India in terms of an arrangement voluntarily entered into between the Indian party and the overseas party through an Escrow Account opened in India in US Dollar will be considered by the Reserve Bank. Website: www.fema.rbi.org.in 18 Email [email protected] 19 of 110 (i) (ii) (iii) (iv) All imports and exports under the arrangement should be at international prices in conformity with the Foreign Trade Policy and Foreign Exchange Management Act, 1999 and the Rules and Regulations made there under. No interest will be payable on balances standing to the credit of the Escrow Account but the funds temporarily rendered surplus may be held in a short- term deposit up to a total period of three months in a year (i.e., in a block of 12 months) and the banks may pay interest at the applicable rate. No fund based....
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....from time to time). In order to provide greater flexibility to project exporters and exporters of services in conducting their overseas transactions, the guidelines stipulated vide paragraphs B.10 (i) (f),C 1(ii), D.1 (i), D.3 and D.4(iv) of the PEM have been modified as set out below. Project/Service exporters have also been extended the facility of deployment of temporary cash balance as set out here under; (i) Inter-Project Transfer of Machinery [B 10 (i) (f) & D 4 (iv)] The stipulation regarding recovery of market value (not less than book value) of the machinery, etc., from the transferee project has been withdrawn. Further, exporters may use the machinery / equipment for performing any other contract secured by them in any country subject to the satisfaction of the sponsoring AD Category I bank(s) EXIM Bank / Working Group and also subject to the - Website: www.fema.rbi.org.in 20 Email [email protected] 21 of 110 reporting requirement and would be monitored by the AD Category - I bank(s) / EXIM Bank / Working Group. (ii) Inter-Project Transfer of Funds [D 1 (i) & D 3] AD Category - I bank(s) / EXIM Bank / Working Group may permit exporters t....
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....DF forms where exports are made to neighboring countries by road, rail or river transport: (i) (ii) In case of exports by barges/country craft/road transport, the form should be presented by exporter or his agent at the Customs station at the border through which the vessel or vehicle has to pass before crossing over to the foreign territory. For this purpose, exporter may arrange either to give the form to the person in charge of the vessel or vehicle or forward it to his agent at the border for submission to Customs. As regards exports by rail, Customs staff has been posted at certain designated railway stations for attending to Customs formalities. They will collect the GR/SDF forms for goods loaded at these stations so that the goods may move straight on to the foreign country without further formalities at the border. The list of designated railway stations can be obtained from the Railways. For goods loaded at stations other than the designated stations, exporters must arrange to present GR/SDF forms to the Customs Officer at the Border Land Customs Station where Customs formalities are completed. Website: www.fema.rbi.org.in 22 Email tradedivisionexport@....
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....f the port of shipment, the calendar year and a six-digit running serial number. (iii) (iv) (V) Customs will certify the value declared by the exporter on both the copies of the GR form at the space earmarked and will also record the assessed value. They will then return the duplicate copy of the form to the exporter and retain the original for transmission to the Reserve Bank. Exporters should submit the duplicate copy of the GR form again to Website: www.fema.rbi.org.in 24 Email [email protected] 25 of 110 (vi) Customs along with the cargo to be shipped. After examination of the goods and certifying the quantity passed for shipment on the duplicate copy, Customs will return it to the exporter for submission to the AD Category - I banks for negotiation or collection of export bills. (vii) Within 21 days from the date of export, exporter should lodge the duplicate copy together with relative shipping documents and an extra copy of the invoice with the AD Category - I banks named in the GR form. (viii) After the documents have been negotiated / sent for collection, the AD Category - I banks should report the transaction to the Reserve Bank in s....
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....mpanies regulated by Insurance Regulatory and Development Authority (IRDA) initially settles the claims of exporters in respect of exports insured with them and subsequently receives the export proceeds from the buyer/buyer's country through the efforts made by them, the share of exporters in the amount so received is disbursed through the bank which had handled the shipping documents. In such cases, ECGC and private insurance companies regulated by IRDA will issue a certificate to the bank, which had handled the relevant shipping documents after full proceeds have been received. The certificate will indicate the number of declaration form, name of the exporter, name of the AD Category I banks, date of negotiation, bill number, invoice value and the amount actually received by ECGC and private insurance companies regulated by IRDA. - Website: www.fema.rbi.org.in 26 Email [email protected] 27 of 110 C.5 PP Forms The manner of disposal of PP forms is the same as that for GR forms. Postal Authorities will allow export of goods by post only if the original copy of the form has been countersigned by an AD Category - I banks. Therefore, PP forms should ....
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........ .... representing per cent of the export realisation credited to the EEFC account maintained by the exporter with " C.8 Consolidation of Air Cargo/ Sea Cargo Consolidation of Air Cargo (a) (i) (ii) Where air cargo is shipped under consolidation, the airline company's Master Airway Bill will be issued to the Consolidating Cargo Agent. The Cargo agent in turn will issue his own House Airway Bills (HAWBS) to individual shippers. AD Category - I banks may negotiate HAWBs only if the relative letter of credit specifically provides for negotiation of these documents in lieu of Airway Bills issued by the airline company. Website: www.fema.rbi.org.in 28 Email [email protected] 29 of 110 (b) Consolidation of Sea Cargo (i) - AD Category I banks may accept Forwarder's Cargo Receipts (FCR) issued by steamship companies or their agents (instead of 'IATA' approved agents), in lieu of bills of lading, for negotiation / collection of shipping documents, of export transactions backed by letters of credit, only if the relative letter of credit specifically provides for negotiation of this document, in lieu of bill of lading. (ii) Further, relative sale....
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....hmetical accuracy of the calculations and on conforming the terms of underlying contracts. Some such instances (where the values declared to the customs authorities and that shown on the documents may differ) are enumerated hereunder: a) b) The export realizable value may be more than what was originally declared to/accepted by the Customs on the GR/SDF form in certain circumstances such as where in c.i.f. or c. & f. contracts, part or whole of any freight increase taking place after the contract was concluded is agreed to be borne by buyers or where as a result of subsequent devaluation of the currency of the contract, buyers have agreed to an increase in price. In certain lines of export trade, the final settlement of price may be dependent on the results of quality analysis of samples drawn at the time of shipment; but the results of such analysis will become Website: www.fema.rbi.org.in 30 Email [email protected] 31 of 110 c) available only after the shipment has been made. Sometimes, contracts may provide for payment of penalty for late shipment of goods in conformity with trade practice concerning the commodity. In these cases, while expor....
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....h the concerned exporter. If the exporter fails to arrange for delivery of the proceeds within 12 months or seek extension of time beyond 12 months, the matter should be reported to the Regional Office concerned of the Reserve Bank stating, where possible, the reason for the delay in realizing the proceeds. The duplicate copies of GR/ SDF / PP / SOFTEX Forms should, continue to be held by AD Category I banks until the full proceeds are realised, except in case of undrawn balances. - AD Category - I banks should follow up export outstandings with exporters systematically and vigorously so that action against defaulting exporters does not get delayed. Any laxity in the follow up of realization of export proceeds by AD Category – I banks will be viewed seriously by the Reserve Bank, leading to the invocation of the penal provision under FEMA, 1999. The stipulation of twelve months or extended period thereof for realization of export proceeds is not applicable for units located in Special Economic Zones (SEZs). The units in SEZS will however continue to follow the GR/SDF/PP/SOFTEX export procedure outlined above. AD Category - I banks should furnish to the Regi....
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.... the local currency. C.17 Export Claims (i) (ii) AD Category - I banks may remit export claims on application, provided the relative export proceeds have already been realised and repatriated to India and the exporter is not on the caution list of the Reserve Bank. In all such cases of remittances, the exporter should be advised to surrender proportionate export incentive, if any, received by him. C.18 Change of buyer/consignee Prior approval of the Reserve Bank is not required if, after goods have been shipped, they are to be transferred to a buyer other than the original buyer in the event of default by the latter, provided the reduction in value, if any, involved does not exceed 25 per cent of the invoice value and the realization of export proceeds is not delayed beyond the period of 12 months from the date of export. C.19 Extension of time and Self write-off by the exporters (i) For export proceeds due within the prescribed period during a financial year all exporters (other than Status Holder exporters) have been allowed to write off (including reduction in invoice value) outstanding export dues and extend the prescribed period of realization beyond 12 mon....
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....ement, Website: www.fema.rbi.org.in 35 Email: [email protected] 36 of 110 AD Category - I banks may promptly advise the exporter concerned to seek extension of time/reduction in invoice value/write-off in respect of non- realization in excess of the 10 per cent limit, failing which, the AD Category - I banks may inform the exporter about the withdrawal of this facility of self write-off / extension of time, within a month, under advice to the Regional Office concerned of the Reserve Bank. C.20 Extension of Time (i) The Reserve Bank of India has permitted the AD Category - I banks to extend the period of realization of export proceeds beyond 12 months from the date of export, up to a period of six months, at a time, irrespective of the invoice value of the export subject to the following conditions: a) b) The export transactions covered by the invoices are not under investigation by Directorate of Enforcement / Central Bureau of Investigation or other investigating agencies, The AD Category - I bank is satisfied that the exporter has not been able to realise export proceeds for reasons beyond his control, c) The exporter submits a declaration th....
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....ertificate from the official liquidator indicating that there is no possibility of recovery of export proceeds produced. ii. The overseas buyer is not traceable over a reasonably long period of time. iii. The goods exported have been auctioned or destroyed by the Website: www.fema.rbi.org.in 37 Email: [email protected] 38 of 110 e. f. g. Port/Customs/Health authorities in the importing country. iv. The unrealised amount represents the balance due in a case settled through the intervention of the Indian Embassy, Foreign Chamber of Commerce or similar Organisation. v. The unrealised amount represents the undrawn balance of an export bill (not exceeding 10 per cent of the invoice value) remained outstanding and turned out to be un realizable despite all efforts made by the exporter. vi. The cost of resorting to legal action would be disproportionate to the unrealised amount of the export bill or where the exporter even after winning the Court case against the overseas buyer could not execute the Court decree due to reasons beyond his control. vii. Bills were drawn for the difference between the letter of credit value and actual export value or be....
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.... but the amount has not been allowed to be repatriated by the central banking authorities of the country. GR/SDF/PP forms which are under investigation by agencies like, Directorate of Enforcement, Directorate of Revenue Intelligence, Central Bureau of Investigation, etc. as also the outstanding bills Website: www.fema.rbi.org.in Email: [email protected] 39 40 of 110 (iii) (iv) C. which are subject matter of civil/ criminal suit. After the "write off" has been permitted AD Category - I banks may certify the duplicate form as under:- "Write off of (Amount in words and figures) permitted in terms of A. P. (DIR Series) Circular No.30 dated April 4, 2001.†- Date Stamp & Signature of AD Category - I bank AD Category I banks may forward a statement in form EBW to the Regional Office of the Reserve Bank under whose jurisdiction they are functioning, indicating details of write offs etc., every half year ended 30th June and 31st December within 15 days from the date of completion of the relevant half year. AD Category - I banks are to put in place a system under which their internal inspectors or auditors carryout random sample check/per cent ....
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....g: (i) The 'netting off' of export receivables against import payments is in respect of the same Indian entity and the overseas buyer / supplier (bilateral netting) and the netting may be done as on the date of balance sheet of the unit in Website: www.fema.rbi.org.in Email: [email protected] 41 42 of 110 SEZ. (ii) The details of export of goods are documented in GR (O) forms / DTR as the case may be while details of import of goods / services are recorded through A1 A2 form as the case may be. The relative GR/ SDF forms will be treated as complete by the designated AD Category - I banks only after the entire proceeds are adjusted / received. (iii) Both the transactions of sale and purchase in 'R' - Returns under FET-ERS are reported separately. (iv) The export / import transactions with ACU countries are kept outside the arrangement. (v) All the relevant documents are submitted to the concerned AD Category - I banks who should comply with all the regulatory requirements relating to the transactions. C.26 Agency Commission on Exports (i) - AD Category I banks may allow payment of commission, either by remittance or by deduction from invoice val....
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....ll be re-imported within three months from the date of remittance and V. ensure that all procedures as applicable to normal imports are adhered to. Website: www.fema.rbi.org.in 43 Email [email protected] 44 of 110 C.28 Exporters' Caution List (i) (ii) (iii) AD Category - I banks will also be advised whenever exporters are cautioned in terms of provisions contained in Regulation 17 of "Export Regulations" (Annex 2). They may approve GR/SDF/PP forms of exporters who have been placed on caution list if the exporters concerned produce evidence of having received an advance payment or an irrevocable letter of credit in their favour covering the full value of the proposed exports. Such approval may be given even in cases where usance bills are to be drawn for the shipment provided the relative letter of credit covers the full export value and also permits such drawings and the usance bill mature within twelve months from the date of shipment. AD Category - I banks should obtain prior approval of the Reserve Bank for issuing guarantees for caution-listed exporters. Website: www.fema.rbi.org.in 44 Email [email protected] 45 of 110 PART -....
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.... Provided that this Rule shall not apply where the payment is made out of funds held in Resident Foreign Currency (RFC) Account of the remitter. 6. (1) Nothing contained in Rule 4 or Rule 5 shall apply to drawal made out of funds held in Exchange Earners' Foreign Currency (EEFC) account of the remitter. (2) Notwithstanding anything contained in sub-rule (1), restrictions imposed under rule 4 or rule 5 shall continue to apply where the drawal of foreign exchange from the Exchange Earners Foreign Currency (EEFC) Account is for the purpose specified in items 10 and 11 of Schedule II, or item 3, 4, 11, 16 & 17 of Schedule Ill as the case may be. 7. Use of International Credit Card while outside India Nothing contained in Rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India. Website: www.fema.rbi.org.in 46 Email [email protected] 47 of 110 Schedule I Transactions which are Prohibited (see rule 3) 1. Remittance out of lottery winnings. 2. Remittance of income from racing/riding etc. or any other hobby. 3. Remittance for purchase of lottery tickets....
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....s bodies, if the amount involved exceeds USD 100,000. 10. Omitted 11. Remittance for membership of Ministry of Finance (Insurance P&I Club Division) Website: www.fema.rbi.org.in 49 Email [email protected] 50 of 110 Schedule III (See Rule 5) 1. Omitted 2. Release of exchange exceeding USD 10,000 or its equivalent in one calendar year, for one or more private visits to any country (except Nepal and Bhutan). 3. Gift remittance exceeding USD 5,000 per remitter/donor per annum. @ 4. Donation exceeding USD 5000 per remitter/donor per annum. # 5. Exchange facilities exceeding USD 100,000 for persons going abroad for employment. 6. Exchange facilities for emigration exceeding USD 100,000 or amount prescribed by country of emigration. 7. Remittance for maintenance of close relatives abroad, @@ i. exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions) of a person who is resident but not permanently resident in India and - (a) is a citizen of a foreign State other than Pakistan; or (b) is a citizen of India, who is on deputation to the office or branch or subsidiary or joint venture in India of such foreign ....
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.... * Stands amended vide A.P. (DIR Series) Circular No. 47 dated April 30, 2007. @@ May be read with A.P. (DIR Series) Circular No 26 dated January 14, 2010. Website: www.fema.rbi.org.in Email [email protected] 51 52 of 110 Annex-2 Notification No. FEMA 23/2000-RB dated 3rd May 2000 In exercise of the powers conferred by clause (a) of sub-section (1) and subsection (3) of section 7, sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following regulations relating to export of goods and services from India, namely: 1. Short title and commencement :- (i) These Regulations may be called the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000. (ii) They shall come into force on 1st day of June, 2000. 2. Definitions :- In these Regulations, unless the context requires otherwise, - (i) 'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999) ; (ii) 'Authorized dealer' means a person Authorized as an Authorized Dealer under sub-section (1) of section 10 of the Act, and includes a person carrying on business as a factor and Authorized as such under t....
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....laration that the full export value of goods (whether ascertainable at the time of export or not) or the software has been or will within the specified period be, paid in the specified manner. (2) Declarations shall be executed in sets of such number as specified. Website: www.fema.rbi.org.in 53 Email [email protected] 54 of 110 (3) For the removal of doubt, it is clarified that, in respect of export of services to which none of the Forms specified in these Regulations apply, the exporter may export such services without furnishing any declaration, but shall be liable to realise the amount of foreign exchange which becomes due or accrues on account of such export, and to repatriate the same to India in accordance with the provisions of the Act, and these Regulations, as also other rules and regulations made under the Act. 4. Exemptions :- Notwithstanding anything contained in Regulation 3, export of goods or services may be made without furnishing the declaration in the following cases, namely: a) trade samples of goods and publicity material supplied free of payment; b) personal effects of travellers, whether accompanied or unaccompanied; c) ship's....
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....ation made to it, subject to the terms and conditions, if any, as stipulated in the permission. 5. Indication of importer-exporter code number :- The importer-exporter code number allotted by the Director General of Foreign Trade under Section 7 of the Foreign Trade (Development & Regulation) Act, 1992 (22 of 1992) shall be indicated on all copies of the declaration forms submitted by the exporter to the specified authority and in all correspondence of the exporter with the Authorised Dealer or the Reserve Bank, as the case may be. 6. Authority to whom declaration is to be furnished and the manner of dealing with the declaration A. Declaration in Form GR/SDF (1) (i) The declaration in form GR/SDF shall be submitted in duplicate to the Commissioner of Customs. (ii) After duly verifying and authenticating the declaration form, the Commissioner of Customs shall forward the original declaration form/data to the nearest office of the Reserve Bank and hand over the duplicate form to the exporter for being submitted to the Authorised dealer. B. Declaration in Form PP (2) (i) The declaration in form PP shall be submitted in duplicate to the Authorised Dealer named in th....
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....overseas market. Website: www.fema.rbi.org.in 56 Email: [email protected] 57 of 110 Explanation: For the purpose of this regulation, 'final place of destination' means a place in a country in which the goods are ultimately imported and cleared through Customs of that country. 8. Manner of payment of export value of goods :- Unless otherwise Authorised by the Reserve Bank, the amount representing the full export value of the goods exported shall be paid through an Authorised Dealer in the manner specified in the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000. Explanation: For the purpose of this regulation, re-import into India, within the period specified for realization of the export value, of the exported goods in respect of which a declaration was made under Regulation 3, shall be deemed to be realization of full export value of such goods. 9. Period within which export value of goods/software to be realised :- d. The amount representing the full export value of goods or software exported shall be realised and repatriated to India within twelve months from the date of export : Provided that where the goods or s....
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....uments pertaining to export shall, within 21 days from the date of export as, as the case may be, from the date of certification of SOFTEX form, be submitted to the Authorised Dealer mentioned in the relevant declaration form: Provided that, subject to the directions issued by the Reserve Bank from time to time, the Authorised Dealer may accept the documents pertaining to export submitted after the expiry of the specified period of 21 days, for reasons beyond the control of the exporter. 12. Transfer of documents :- Without prejudice to Regulation 3, an Authorised Dealer may accept, for negotiation or collection, shipping documents including invoice and bill of exchange covering exports, from his constituent (not being a person who has signed the declaration in terms of Regulation 3) : Website: www.fema.rbi.org.in 58 Email [email protected] 59 of 110 Provided that before accepting such documents for negotiation or collection, the Authorised Dealer shall - a) Where the value declared in the declaration does not differ from the value shown in the documents being negotiated or sent for collection, or b) Where the value declared in the declaration is le....
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....ment to Govt. of a foreign state shall be governed by the terms and conditions set out in the relative public notices issued by the Trade Control Authority in India and the instructions issued from time to time by the Reserve Bank. (ii) An export under the line of credit extended to a bank or a financial institution operating in a foreign state by the EXIM Bank for financing exports from India, shall be governed by the terms and conditions advised by the Reserve Bank to the Authorised Dealers from time to time. C. Counter Trade Any arrangement involving adjustment of value of goods imported into India against value of goods exported from India, shall require prior approval of the Reserve Bank. 15. Delay in Receipt of Payment :- Where in relation to goods or software export of which is required to be declared on the specified form, the specified period has expired and the payment therefor has not been made as aforesaid, the Reserve Bank may give to any person who has sold the goods or software or who is entitled to sell the goods or software or procure the sale thereof, such directions as appear to it to be expedient, for the purpose of securing, (a) the payment th....
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....n or any class of export transactions or any class of goods or software or class of exporters, the exporter shall, prior to the export, comply with the conditions as may be specified in the order, namely; a) that the payment of the goods or software is covered by an irrevocable letter of credit or by such other arrangement or document as may be indicated in the order; b) that any declaration to be furnished to the specified authority shall be submitted to the Authorised Dealer for its prior approval, which may, having regard to the circumstances, be given or withheld or may be given subject to such conditions as may be specified by the Reserve Bank by the directions issued from time to time. c) that a copy of the declaration to be furnished to the specified authority shall be submitted to such authority or organisation as may be indicated in the order for certifying that the value of goods or software specified in the declaration represents the proper value thereof. (2) No direction under sub-regulation (1) shall be given by the Reserve Bank and no approval under clause (b) of that sub-regulation shall be withheld by the Authorised Dealer unless the exporter has b....
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....) FORM NO. ORIGINAL Exporter Invoice Date No. & SB No. & Date AR4/AR4A No. & Date Q/Cert. No. & Importer-Exporter Code No. Date Consignee Export Control Trade Custom House Agent L/C. No. Pre-Carriage by Place Receipt of by Pre-Carrier Vessel/Flight Rotation No. No. If export under: Deferred Credit Joint Venture Rupee Credit Others RBI's Approval/Cir. No. & Date Type of shipment: Outright Sale Consignment Export Others (Specify) Port Loading of Nature of /C&F /FOB contract CIF Other (Specify) Port of Discharge Country of Destination Exchange Rate u/s 14 of CA Currency of invoice S. No. Marks & Container No. Nos. No. & Kind of Pkgs. Website: www.fema.rbi.org.in 64 Statistical Code & Quantity Value FOB Description of Email [email protected] 65 of 110 Net Weight Gross Weight Total FOB value (in words) Goods export value or where not ascertainable, the value which exporter expects to receive on the sale of goods. Analysis of Export value Curren Amount cy Full FOB Value Freight Insurance Commission Rate Discount Curren cy Amoun t Other Deductions EXCHANGE CONTROL DECLARATION (GR) FORM....
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.... of /C&F /FOB contract CIF Other (Specify) Country Destination of Exchange Rate u/s 14 of CA Currency of invoice S. Marks & Container No. & Kind of No. No. Nos. Pkgs. Website: www.fema.rbi.org.in Statistical Code & Quantity Value FOB Description of 67 Email: [email protected] 68 of 110 Goods Net Weight Gross Weight Total FOB value (in words) Analysis of Export Currency Amount value Full export value or where not ascertainable, the value which exporter expects to receive on the sale of goods. FOB Value Freight Insurance Commission Rate Discount Currency Amount Other Deductions EXCHANGE CONTROL DECLARATION (GR) FORM NO. Is Export under L/C arrangements? Ye No S If yes, name of advising bank in India Bank through which payment is to be received For customs Customs Assessable value Rs. (Rupees) Export value Verified Customs Appraiser Cargo shipped in full/part Quantity Value Whether payment is to be received through the ACU Yes/No Date Shipment of Customs Appraiser Website: www.fema.rbi.org.in 68 Email [email protected] 69 of 110 Declaration under Foreign Exchange Management Act, 1999: I/W....
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....w.fema.rbi.org.in 70 Email [email protected] 71 of 110 Shipping Bill No. SDF [See Regulation 3(1)] [In duplicate] Date: Declaration under Foreign Exchange Management, Act, 1999: I/We hereby declare that I/We am/are the *Seller/Consignor of the goods in respect of which this declaration is made and that the particulars given in the Shipping Bill No. dated are true and that (a) *the value as contracted with the buyer is the same as the full export value declared in the above shipping bill (b) *the full export value of the goods is not ascertainable at the time of export and that the value declared is that which I/We, having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market. I/We undertake that I/We will deliver to the bank named herein The foreign exchange representing the full export value of the goods on or before @ in the manner specified in the Regulations made under the Foreign Exchange Management Act, 1999. I/We further declare that I/We am/are resident in India and I/We have a place of business in India. I/We* am/are OR am/are not in Caution List of the Reserve Bank of India. Date:....
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....lue value is not Particulars expected on sale of Currency goods in the oversease market may be shown @Full Export value No application for F.O.B. Value Amount Website: www.fema.rbi.org.in 73 Email [email protected] 74 of 110 permission for Freight remittance/deduction From the declared value on account of agency Commission and/or discount will be Entertained by the Reserve Bank or Authorised Dealer unless these have been declared on this form Insurance Discount (Rate. ....) Agency Commission (Rate. ..) *see FEM (Export of Goods & Services) Regulation, 2000. (For Use) Customs 13. Customs Assessable Value Export Value (Rupees) verified (Customs Appraiser) 14. If the export is made under general permission of the Reserve Bank of India, Number and date of its approval 15. If the export is made under L/C arrangements, name of advising bank in India 16. State if the payment is to be received through the Asian Clearing Union: *Yes/No 17. Name & address of bank through whom payment is to be received I/We hereby declare that I/we am/are the *SELLER/CONSIGNOR of the goods in respect of which the declaration is made and that the....
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....nment Credits. Reserve Bank will advise Authorised Dealers of such arrangements by Website: www.fema.rbi.org.in Email [email protected] 75 76 of 110 issue of circulars. Methods of payment specified in the individual arrangements will have to be followed in such cases. Space for use by Reserve Bank of India Website: www.fema.rbi.org.in 76 Email [email protected] 77 of 110 Form Number: FORM PP EXCHANGE CONTROL Exporter's Declaration DUPLICATE (Please see 'Notes to Exporters' overleaf) 1. (a) Name of the Post Office (b) Number and date of Parcel Receipt 234 2. Exporter's Name (for RBI use) 3. Importer/Exporter Code No. 4. Buyer's/Consignee's Name and address: 56 5. Country of destination 6. Nature of contract* (i) CIF/(ii) C&F/(iii)FOB/ (iv) Others (Specify): _..... 7. Date of despatch. 8. Type of Shipment* (i) Outright Sale/(ii) Consignment export/(iii) Others (Specify) ..... 9. 10. 11. Sq. Metre/Metre/Number/Others Description of goods : Quantity of goods : Unitt .....Quantity Currency of Invoice [†Ton/Kilogram/Litre/Cubic Metre/ (Specify)]..... Where the full export 12. Analysis of export v....
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....ng to export of goods from India must be passed through the medium of an Authorised Dealer in foreign exchange in India within 21 days of the date of shipment of the goods. Website: www.fema.rbi.org.in 79 Email [email protected] 80 of 110 FOR AUTHORISED DEALER'S USE Uniform Code Number : Date of *(i) negotiation/(ii) receipt for collection * Strike out whichever is not applicable Bill No. Type of Bill *DA/(ii)DP/ (iii) Others Type of shipment: *(i) Firm Sale Contract/ (ii) Consignment Basis/ (iii) Others (Specify) The PP Form was included in the Statement sent to the Reserve Bank with the R Return for the fortnight ending sent on We certify and confirm that we have received the total amount of (Currency) (Amount) as under being the proceeds of exports declared on this form. Date of Currency Credit to Nostro receipt Account in Debit to NR Rupee Account of a bank Period to R Return with (Country) in which the (country) realization has been reported to RBI In our name In the name Held with us Held witht oft 1 2 3 4 5 6 7 (†Write the name of the concerned Indian Authorised Dealer branch). Any other manner of r....
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....e RBI Code Data Entry jobs and Conversion 906 Website: www.fema.rbi.org.in 82 Email [email protected] 83 of 110 Software Data Processing Software Development Software Product, Packages Others (Please specify) 9 07 908 10. (b) Other Software Video/TV Software Others (Please specify) Analysis of Export Value Amount (a) Full export value of which :- i) Net value of exports without ii) transmission charges Transmission charges included in invoice Transmission charges (if payable (b) separately by the overseas client) (c) Deduct: Agency commission, at the rate of .% (d) Any other deductions as permitted by RBI (please specify) (e) Amount to be realised [(a+b) — (c+d)] 909 910 9/11 Currency 11. How export value will be realised (mode of realization) (Please mark on the appropriate box) ☠(a) Under L/C (b) Bank Guarantee Website: www.fema.rbi.org.in (a) Name and address of 83 Authorised Dealer (b) Authorised Dealer Code No. (a) Name and address of Authorised Dealer Email [email protected] 84 of 110 ☠(c) Any other arrangement e.g. advance payment, etc. including transfer/remittance to b....
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[email protected] 86 of 110 EXCHANGE CONTROL SOFTWARE EXPORT DECLARATION (SOFTEX) FORM (For declaration of Software Exports through data-communication links and receipt of Royalty on the Software Packages/Products exported) FORM NO: AB DUPLICATE 1. Name and address of the exporter 2. STPI Centre within whose jurisdiction the unit is situated 3. Import-Export Code Number 4. Category of exporter : STP/EHTP/EPZ/SEZ/100% EOU/DTA unit 5. Buyer's name and address including country and their relationship with exporting unit (if any) 6. Date and Number of Invoice 7. a) Whether export contract/ purchase order already registered with STPI. Yes No (If 'No', please attach copy of the contract/purchase order) b. Does contract stipulate payment of royalty Yes SECTION-A (For exports through data communication link) 8. Name of Authorised datacom STPI/VSNL/DOT/Internet/Others service provider 9. Type of software exported (Please mark on the appropriate box on the left side). No (Please specify) Website: www.fema.rbi.org.in 86 Email [email protected] 87 of 110 (a) Computer Software Data Entry jobs and Conversion RBI Code 906 Sof....
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.... I/We undertake that I/we will deliver to the bank named above the foreign exchange representing the full value of the software exported as above on or before (i.e. within six months from the date of invoice/date of last invoice raised during a month), in the manner specified in the Regulations made under the Foreign Exchange Management Act, 1999. Place: Date: Name: Designation: Enclosure: Signature of the Exporter Stamp (1) Copy of Export Contract [7(a)] (2) Copy of Royalty Agreement [121] Copy of communication from foreign customer [14] Space for use of the competent authority (i.e. STPI/FTZ/EPZ/SEZ) on behalf of Ministry of Information Technology Certified that the software described above was actually transmitted and the export/royalty value declared by the exporter has been found to be in order and accepted by us. Place: Date: Name: Designation: (Signature of Designated Official of STPI/FTZ/EPZ/SEZ on behalf of Ministry of Information Technology) Stamp Website: www.fema.rbi.org.in 89 Email [email protected] 90 of 110 AD's Uniform Code No For Authorised Dealer's use only Certificate by Authorised Dealer The SOFTEX Form included....
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....ncluded in invoice Transmission charges (if payable (b) separately by the overseas client) (c) Deduct: Agency commission, at the rate of % (d) Any other deductions as permitted by RBI (please specify) (e) Amount to be realized [(a+b) - (c+d)] 911 Currency Website: www.fema.rbi.org.in 92 Email [email protected] 93 of 110 11. How export value will be realized (mode of realization) (Please mark on the appropriate box) ☠(a) Under L/C a) Name and address of Authorised Dealer b) Authorised Dealer Code No. (b) Bank Guarantee a) Name and address of Authorised Dealer b) Authorised Dealer Code No. ☠(c) Any other arrangement a) Name and address of e.g. advance payment, etc. Authorised Dealer including transfer/ remittance to bank account maintained overseas (Please specify) b) Authorised Dealer Code No. SECTION B - (For receipt of Royalty on Software Packages/Products exported) Details of Software Package(s)/ Product(s) exported 12. (a) Date of export (b) GR/SDF/PP/SOFTEX Form No. on which exports were declared (c) Royalty agreement details %age and amount of royalty Period of royalty agreement (Enclose copy of Royal....
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....ii) They shall come into effect on 1st day of June, 2000. 2. Definitions:- In these Regulations, unless the context requires otherwise, - (i) 'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999); (ii) 'authorised dealer' means a person authorised as an authorised dealer under subsection (1) of Section 10 of the Act; (iii) 'authorised bank' means a bank, other than an authorised dealer, authorised by the Reserve Bank to accept deposits from persons resident outside India; (iv) 'FCNR/NRE account' means an FCNR or NRE account opened and maintained in accordance with the Foreign Exchange Management (Deposits) Regulations, 2000; (v) 'Permitted currency' means a foreign currency which is freely convertible; (vi) the words and expressions used but not defined in these Regulations shall have the same meanings respectively assigned to them in the Act. 3. Manner of Receipt in Foreign Exchange :- (i) Every receipt in foreign exchange by an authorised dealer, whether by way of remittance from a foreign country (other than Nepal and Bhutan) or by way of Website: www.fema.rbi.org.in 95 Email [email protected] 96 of 110 reimbursement from his bra....
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....d by the Reserve Bank to authorised dealers, where the export is covered by the arrangement between the Central Government and the Government of a foreign country or by the credit arrangement entered into by the EXIM Bank with a financial institution in a foreign state; vi) in the form of precious metals i.e. gold/silver/platinum equivalent to value of jewellery exported by Gems and Jewellery units in Special Economic Zones and Export Oriented Units on the condition that the sale contract provides for the same and the value is declared in the relevant GR/SDF/PP forms. 5) Manner of payment in foreign exchange:- (1) A payment in foreign exchange by an authorised dealer, whether by way of remittance from India or by way of reimbursement to his branch or correspondent outside India (other than Nepal and Bhutan) against payment for import into India, or against any other payment, shall be as mentioned below: Group Manner of payment (1) member countries in a) payment for all eligible current transactions by credit the Asian Clearing to the Asian Clearing Union dollar account in India of a Union (except Nepal) bank of the member country in which the other party to Web....
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[email protected] 100 of 110 Annex-4 (C.19, Part-1, Self write-off and extension of time) (PART A) Annual statement to be furnished to Authorised Dealers by exporters giving details of export performance during a calendar year as on 31 Dec..... Total Export Proceeds Due within the Prescribed period of 180 days or higher period as applicable No.of GR/ SOFTEX/SDF / PP forms due Amount Details of Export Bills not Realised (partly or fully) within the prescsribed period GR/SOFTEX/ SDF/PP No. (1) Amount Total Export Proceeds realized within the prescribed period of 180 days or higher period as applicable No. of GR/ SOFTEX/SDF / PP forms Fully Realised Partly Realised (PART B) (Amount in Rs 000s) Export proceeds not realized within the Prescribed Period of 180 days or higher period as applicable No. of GR/ SOFTEX/ Amount SDF/PP forms Details of Extension / Reduction in invoice value/Write off by the Exporter himself Amount Amount (Amount in Rs 000s) Extension/ Reduction in invoice value / Write off sought from AD Revised due date Amount Revised due date @ @ (2) Total NOTE: 1) The exporter should approach AD/RBI fo....
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....om overseas bank indicating terms & conditions of the loan/overdraft/line of credit facilities offered. Certified copies of Reserve Bank's approval in respect of foreign currency loans raised giving their maturity patterns. -23 1. Name and address of the Exporter 2. 3. 4. Importer-exporter's code number Name and address of the bank/ branch with which foreign currency account is proposed to be maintained. In case the account is to be maintained with a bank out-side India, name and address of the branch of a bank in India which will monitor the transactions put through the foreign currency accounts. Website: www.fema.rbi.org.in 102 Email [email protected] 103 of 110 5. Details of exports made and proceeds realized during the period the preceding 3 years and outstanding at the end of the period. Financial Total Amount Outstanding Year exports realised at (Rs.) the end of the made (Rs.) period (Rs.) 6. 7. 8. 9. 10. 11. Details of imports made Calendar Year Financial Year Country Amount (Rs.) Country Amount (Rs.) during the preceding 3 years, country-wise. In case the account is proposed to be opened with a bank abroad, indicate....
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....ng beyond due date Sr. Name Expor No. & Date GR Port Ship- Name Comm- Invoice No. & -ter's date of Form of ping & modity value Add- Code of RBI export No. Ship- bill add- Curr- ress No./ appro ment No. ress ency & of IE -val and of the Amount export Code for date over- -ter No. defe- rred pay- ment seas buyer 1. 2. 3. term 5. 6. 7. 8. 9. 10. 11. Value of goods Total Amount of Total Amount of Rupee covered under deferred deferred instalments instalments outstanding equi- valent of Whether ECGC No. & date Rema -rks payment terms (including (including outstand cover obtained of bank certi- (including interest) already interest) beyond ing (Yes ficate interest) received due date amount /No) issued Curr- Amount Curr- Amount Curr- Amount ency 12. Total ency 13. ency 14. 15. 16. 17. 18. Website: www.fema.rbi.org.in 106 Email [email protected] 107 of 110 Part III: Summary Part I Part II 'Cash' Export on exports consignment Undrawn balances Total Exports on deferred basis Rs. Rs. Rs. Rs. payment basis Rs. Outstandings as on (End of previous half-year) ....