TaxTMI 
TaxTMI 
Master Circular on Export of Goods and Services.
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....Document 1 INDEX PART-1 3 A. Introduction 3 PART 2 .5 B. General guidelines for Exports 5 B.1 Exemption from Declarations 5 B.2 Manner of Receipt and Payment 5 B.3 Realisation and Repatriation of export proceeds 8 B.4 Foreign Currency Account. 9 B.5 Diamond Dollar Account (DDA). 10 B.6 Exchange Earners' Foreign Currency (EEFC) Account. 11 B.7 Setting up of Offices Abroad and Acquisition of Immovable Property for Overseas Office. 12 B.8 Advance Payments against Exports 13 B.9 GR Approval for Trade Fair/Exhibitions abroad 14 B.10 GR approval for Export of Goods for re-imports 15 B.11 Part Drawings /Undrawn Balances. 15 B.12 Consignment Exports 16 B.13 Opening / Hiring of Ware houses abroad 16 B.14 Direct dispatch of documents by the exporter 17 B.15 Invoicing of Software Exports 18 B.16 Short Shipments and Shut out Shipments 19 B.17 Counter-Trade Arrangement. 20 B.18 Export of Goods on Lease, Hire, etc. 20 B.19 Export on Elongated Credit Terms 21 B.20 Export of goods by Special Economic Zones (SEZs) 21 B.21 Project Exports and Service Exports 21 B.22 Export of Currency 23 B.23 Forfaiting 23 B.24 ....
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.... (DGFT) and its regional offices, functioning under the Ministry of Commerce and Industry, Department of Commerce, Government of India. Policies and procedures required to be followed for exports from India are announced by the DGFT, from 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,....
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....s per FEMA Regulations. Grant of GR waiver (i) AD Category - I banks may consider requests for grant of GR waiver from exporters for export of goods free of cost, for export promotion up to 2 per cent of 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 ....
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....acilities shall open a NOSTRO collection account for receipt of the export related payments facilitated through such arrangements. Where the exporters availing of this facility are required to open notional accounts with the OPGSP, it shall be ensured that no funds are allowed to be retained in such accounts and all receipts should be automatically swept and pooled into the NOSTRO collection account opened by the AD Category-I bank. d. A separate NOSTRO collection account may be maintained for each OPGSP or the bank should be able to delineate the transactions in the NOSTRO account of each OPGSP. e. The following debits will only be permitted to the NOSTRO collection account opened under this arrangement: I. Repatriation of funds representing export proceeds to India for credit to the exporters' account; II. (b) Payment of fee/commission to the OPGSP as per the predetermined rates / frequency/ arrangement; and III. (c) Charge back to the importer where the exporter has failed in discharging his obligations under the sale contract. f. The balances held in the NOSTRO collection account shall be repatriated and credited to the respective exporter's account with a ban....
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....vertible currency in addition to the ACU mechanism. d) In view of the difficulties being experienced by importers/exporters in payments to / receipts from Iran, it has been decided that with effect from December 27, 2010, all eligible current account transactions including trade transactions with Iran should be settled in any permitted currency outside the ACU mechanism, until further notice. 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 8 Email : [email protected] Website : www.fema.rbi.org.in goods or software to India within a stipulated period from the date of export, as under .. (i) By Units in Special Economic Zones (SEZs): No specific time period has been stipulated; (ii) By Status Holder Exporters as defined in the Foreign Trade Policy : Within a period of twelve months from the date of export; (iii) 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 a....
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....lated in Regulation 6 (A) of Notification No. FEMA 10/2000-RB dated May 3, 2000 and as amended from time to time. (v) A person resident in India being a project / service exporter may open, hold and maintain foreign currency account with a bank outside or in India, subject to the standard terms and conditions in the Memorandum PEM. B.5 Diamond Dollar Account (DDA) (i) 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. 10 Email : [email protected] Website : www.fema.rbi.org.in (iii) Eligible firms ....
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....come or turnover during the last two financial years or up to twenty-five per cent of the net worth, whichever is higher. (ii) For recurring expenses, remittances up to ten per cent of the average annual sales/income or turnover during the last two financial years may be sent for the purpose of normal business operations of the office (trading / non-trading) / branch or representative office outside India subject to the following terms and conditions: 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 Ba....
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....entire balances held in the exporter's EEFC accounts maintained at different branches/banks. Note: AD Category - I banks may also be guided by the Master Circular on Guarantees and Co-acceptances issued by DBOD. B.9 GR Approval for Trade Fair/Exhibitions abroad Firms / Companies and other organizations participating in Trade Fair/Exhibition abroad can take/export goods for exhibition and sale 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 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) The exporter shall produce relative Bill of Entry within one month of re-import into India of the unsold items. (ii) The sale proceeds of the items sold are repatriated to India in accordance with the Foreign Exchange Management (Realisation, Repatriation, and Surrender of Foreign....
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....goods have been exported on consignment basis, the AD Category-I bank, while forwarding shipping documents to his overseas branch/ correspondent, should instruct the latter to deliver them only against trust receipt/undertaking to deliver sale proceeds by a specified date within the period prescribed for realization of proceeds of the export. This 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. (ii) 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. (iii) 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 postage/cable charges, stamp duty, etc. (iv) 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 aban....
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....ry - I banks may also permit `Status Holder Exporters' (as defined in the Foreign Trade Policy), and units in Special Economic Zones (SEZ) to dispatch the export documents to the consignees outside India subject to the terms and conditions that: a) The export proceeds are repatriated through the AD banks named in the GR Form. b) The 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. (iii) 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. 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....
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....ite : www.fema.rbi.org.in Customs in the form and manner prescribed, attaching thereto the unused duplicate copy of GR form and the shipping bill. The Customs will verify that the shipment was actually shut out, certify the copy of the notice as correct and forward it to the Reserve Bank together with unused 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 subject to following conditions : (i) 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. (ii) No interest will be payable on balances standing to the credit of the E....
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.... Bank/ Working Group at post-award stage before undertaking execution of such contracts. Regulations relating to ' Project Exports' and 'Service Exports' are 21 Website : www.fema.rbi.org.in Email : [email protected] laid down in the revised Memorandum of Instructions on Project and Service Exports (PEM- October 2003 as amended 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 / Worki....
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....through an AD bank. Such remittances may be made in advance in one lump sum or at monthly intervals as approved by the authority concerned. B.24 Exports to neighbouring countries by Road, Rail or River The following procedure should be adopted by exporters for filing original copies of GR/SDF forms where exports are made to neighboring countries by road, rail or river transport: (i) 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 23 Website : www.fema.rbi.org.in Email : [email protected] 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. (ii) 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 forma....
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....3 GR forms (i) GR forms should be completed by the exporter in duplicate and both the copies submitted to the Customs at the port of shipment along with the shipping bill. (ii) Customs will give their running serial number on both the copies after admitting the corresponding shipping bill. The Customs serial number will have ten numerals denoting the code number of the port of shipment, the calendar year and a six- digit running serial number. (iii) 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. (iv) They will then return the duplicate copy of the form to the exporter and retain the original for transmission to the Reserve Bank. (v) Exporters should submit the duplicate copy of the GR form again to Customs along with the cargo to be shipped. 26 Website : www.fema.rbi.org.in Email : [email protected] (vi) 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. (v....
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....shipping documents. (iv) The manner of disposal of EC copy of Shipping Bill (and form SDF appended thereto) is the same as that for GR forms. The duplicate copy of the form together with a copy of invoice etc. shall be retained by the AD Category - I banks and may not be submitted to the Reserve Bank. In cases where ECGC and private insurance companies 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. ....
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....tion allowed, if any, is within the powers delegated to them or has been duly approved by the Reserve Bank, wherever necessary. C.7 Certification for EEFC Credits Where a part of the export proceeds are credited to an EEFC account, the export declaration (duplicate) form may be certified as under: "Proceeds amounting to 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 (a) Consolidation of Air Cargo i. 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. ii. 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. (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....
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.... of Foreign Exchange Management (Export of Goods and Services) Regulations, 2000. (viii) To accept the variations in the value declared to the customs authorities and that is reflected on the export documents which stem from the terms of contract, on production of documentary evidence after verifying the arithmetical 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) 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. b) 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 availa....
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....up of Overdue Bills (i) AD Category - I banks should closely watch realization of bills and in cases where bills remain outstanding, beyond the due date for payment or 12 months from the date of export, the matter should be promptly taken up with 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. (ii) 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. (iii) 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. (iv) The stipulation of twelve months or extended period thereof for real....
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....ree financial years, outstanding of exports made to countries facing externalization problems may be ignored provided the payments have been made by the buyers in the local currency. C.17 Export Claims 35 Website : www.fema.rbi.org.in Email : [email protected] (i) 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. (ii) In all such cases of remittances, the exporter should be advised to surrender proportionate export incentives, 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 pre....
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.... the AD Category - I banks but unrealised as at the end of financial year will be computed for export proceeds due in the following financial year. (vi) In cases where exporters have failed to comply with the above requirement, 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 37 Email : [email protected] Website : www.fema.rbi.org.in value of the export subject to the following conditions: a) The export transactions covered by the invoices are not under investigation by Directorate of Enforcement / Central Bureau of Investigation ....
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....the exporter having made all efforts to realise the dues; d. The case falls under any of the under noted categories: i. The overseas buyer has been declared insolvent and a certificate 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 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 39 Website : www.fema.rbi.org.in Email : [email protected] e....
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....: i. Exports made to countries with externalization problem i.e. where the overseas buyer has deposited the value of export in local currency but the amount has not been allowed to be repatriated by the central banking authorities of the country. ii. 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 which are subject matter of civil/ criminal suit. C. 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 (iii) 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 41 Email : [email protected] Website : www.fema.rbi.org.in December within 15 days from the date of completion of the relevant half year. (iv) A....
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.... Credit Guarantee Corporation of India Limited (ECGC) or the write -off is allowed by the Reserve Bank. C.25 Shipments Lost in Transit When shipments from India for which payment has not been received either by negotiation of bills under letters of credit or otherwise are lost in transit, the AD Category - I banks must ensure that insurance claim is made as soon as the loss is known. In cases where the claim is payable abroad, the AD Category - banks must arrange to collect the full amount of claim due on the lost shipment, through the medium of their overseas branch/correspondent and release the duplicate copy of GR/SDF/PP form only after the amount has been collected. A certificate for the amount of claim received should be furnished on the reverse of the duplicate copy. AD Category - I banks should ensure that amounts of claims on shipments lost in transit which are partially settled directly by shipping companies/airlines under carrier's liability abroad are also repatriated to India by exporters. C.26 'Netting off' of export receivables against import payments - Units in Special Economic Zones (SEZs) 43 Website : www.fema.rbi.org.in Email : tradedivi....
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....e payment of commission satisfies the conditions as at (a) and (b) stipulated in paragraph (i) above. (b) The commission is not payable to Escrow Account holders themselves. (c) The commission should not be allowed by deduction from the invoice value. (iii) Payment of commission is prohibited on exports made by Indian Partners towards equity participation in an overseas joint venture / wholly owned subsidiary as also exports under Rupee Credit Route except commission up to 10 per cent of invoice value of exports of tea & tobacco. C.28 Refund of Export Proceeds AD Category - I banks, through whom the export proceeds were originally realised may consider requests for refund of export proceeds of goods exported from India and being re-imported into India on account of poor quality. While permitting such transactions, AD Category - I banks are required to : (i) exercise due diligence regarding the track record of the exporter (ii) verify the bonafides of the transactions (iii) obtain from the exporter a certificate issued by DGFT / Custom authorities that no incentives have been availed by the exporter against the relevant export or the proportionate incentives ....
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....tever name called which has the effect of creating foreign exchange liability; (c) "Schedule" means a schedule appended to these rules; (d) The words and expressions not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act. 3. Prohibition on drawal of Foreign Exchange --- Drawal of foreign exchange by any person for the following purpose is prohibited, namely: a. a transaction specified in the Schedule I; or b. a travel to Nepal and/or Bhutan; or c. a transaction with a person resident in Nepal or Bhutan. Provided that the prohibition in clause (c) may be exempted by RBI subject to such Website : www.fema.rbi.org.in 47 Email : [email protected] terms and conditions as it may consider necessary to stipulate by special or general order. 4. Prior approval of Government of India --- No person shall draw foreign exchange for a transaction included in the Schedule II without prior approval of the Government of India; 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. 5. Prior approval of Reserve....
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.... purposes other than promotion of tourism, foreign investments and international bidding (exceeding USD 10,000) by a State Government and its Public Sector Undertakings Ministry of Finance, (Department of Economic Affairs) 3. Remittance of freight of vessel chartered by a PSU Ministry of Surface Transport, (Chartering Wing) 4. Payment of import through ocean transport by a Govt. Department or a PSU on c.i.f. basis (i.e. other than f.o.b. and f.a.s. basis) Ministry of Surface Transport, (Chartering Wing) 5. Multi-modal transport operators making remittance to their agents abroad Registration Certificate from the Director General of Shipping 6. Remittance of hiring charges of transponders by (a) TV Channels (b) Internet Service providers Ministry of Information and Broadcasting Ministry of Communication and Information Technology 7. Remittance of container detention Ministry of Surface Transport (Director 50 Website : www.fema.rbi.org.in Email : [email protected] charges exceeding the rate General of Shipping) prescribed by Director General of Shipping 8. omitted 9. Remittance of prize Ministry of Human Resources money/spon....
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....th thereof) or for a specific job or assignments, the duration of which does not exceed three years, is a resident but not permanently resident. 8. Release of foreign exchange, exceeding USD 25,000 to a person, irrespective of period of stay, for business travel, or attending a conference or specialised training or for maintenance expenses of a patient going abroad for medical treatment or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/check-up. 9. Release of exchange for meeting expenses for medical treatment abroad exceeding the estimate from the doctor in India or hospital/doctor abroad. 10. Release of exchange for studies abroad exceeding the estimate from the institution abroad or USD 100,000, per academic year, whichever is higher. 11. Commission, per transaction, to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or 5% of the inward remittance whichever is more. 12. Omitted 13. Omitted 14. Omitted 15. Remittances exceeding US$ 10,000,000 per project for any consultancy services in respect of infrastructure projects and US$ 1,000,000 per project, for other ....
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....rt Bank of India established under the Export-Import Bank of India Act, 1981 (28 of 1981); (iv) 'export' includes the taking or sending out of goods by land, sea or air, on consignment or by way of sale, lease, hire-purchase, or under any other arrangement by whatever name called, and in the case of software, also includes transmission through any electronic media ; (v) 'export value' in relation to export by way of lease or hire-purchase or under any other similar arrangement, includes the charges, by whatever name called, payable in respect of such lease or hire-purchase or any other similar arrangement; (vi) 'form' means form annexed to these Regulations; (vii) 'schedule' means schedule appended to these Regulations; (viii) 'software' means any computer programme, database, drawing, design, audio/video signals, any information by whatever name called in or on any medium other than in or on any physical medium ; 55 Website : www.fema.rbi.org.in Email : [email protected] (ix) 'specified authority' means the person or the authority to whom the declaration as specified in Regulation 3 is to be furnished; (x) 'Working Group' means the Group ....
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.... the orders of Central Government or of such officers as may be appointed by the Central Government in this behalf or of the military, naval or air force authorities in India for military, naval or air force requirements; d) goods or software accompanied by a declaration by the exporter that they are not more than twenty five thousand USD in value; e) by way of gift of goods accompanied by a declaration by the exporter that they are not more than five lakhs rupees in value; f) aircrafts or aircraft engines and spare parts for overhauling and/or repairs abroad subject to their re-import into India after overhauling /repairs, within a period of six months from the date of their export; g) goods imported free of cost on re-export basis; h) goods not exceeding USD 1000 or its equivalent in value per transaction exported to Myanmar under the Barter Trade Agreement between the Central Government and the Government of Myanmar; i) The following goods which are permitted by the Development Commissioner of the Export Processing Zones, Electronic Hardware Technology Parks, Electronic Software Technology Parks or Free Trade Zones to be re-exported, namely: 1) imported good....
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.... after countersigning the declaration form, hand over the original form to the exporter who shall submit it to the postal authorities through which the goods are being dispatched. The postal authorities after dispatch of the goods shall forward the declaration form to the nearest office of the Reserve Bank. C. Declaration in Form SOFTEX (3) (i) The declaration in form SOFTEX in respect of export of computer software and audio/video/television software shall be submitted in triplicate to the designated official of Ministry of Information Technology, Government of India at the Software Technology Parks of India (STPIs) or at the Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones (SEZs) in India. 58 Website : www.fema.rbi.org.in Email : [email protected] (ii) After certifying all three copies of the SOFTEX form, the said designated official shall forward the original directly to the nearest office of the Reserve Bank and return the duplicate to the exporter. The triplicate shall be retained by the designated official for record. D. Duplicate Declaration Forms to be retained with Authorised Dealers On the realization....
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.... in Special Economic Zones, the stipulation of the period of realization and repatriation to India of full export value of goods or software shall not apply3. Provided that where the goods are exported to a warehouse established outside India with the permission of the Reserve Bank, the amount representing the full export value of goods exported shall be paid to the Authorised Dealer as soon as it is realised and in any case within fifteen months from the date of shipment of goods; Provided further that the Reserve Bank, or subject to the directions issued by that Bank in this behalf, the Authorised Dealer may, for a sufficient and reasonable cause shown, extend the said period of twelve months or fifteen months, as the case may be. (2) (a) Where the export of goods or software has been made by a Status Holder Exporter, as defined in the EXIM Policy in force , then notwithstanding anything contained in sub-regulation (1), the amount representing the full export value of goods or software shall be realised and repatriated to India within twelve months from the date of export; Provided that the Reserve Bank may for a sufficient and reasonable cause shown, extend the said ....
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....so to sign such declaration and thereupon such constituent shall be bound to comply with such requisition and such constituent signing the declaration shall be considered to be the exporter for the purposes of these Regulations to the extent of the full value shown in the documents being negotiated or sent for collection and shall be governed by these Regulations accordingly. 13. Payment for the Export :- In respect of export of any goods or software for which a declaration is required to be furnished under Regulation 3, no person shall except with the permission of the Reserve Bank or, subject to the directions of the Reserve Bank, permission of an Authorised dealer, do or refrain from doing anything or take or refrain from taking any action which has the effect of securing - (i) That the payment for the goods or software is made otherwise than in the specified manner; or 61 Website : www.fema.rbi.org.in Email : [email protected] (ii) That the payment is delayed beyond the period specified under these Regulations; or (iii) That the proceeds of sale of the goods or software exported do not represent the full export value of the goods or software....
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....sold and (b) the sale of goods and payment thereof, if goods or software has not been sold or re- import thereof into India as the circumstances permit, within such period as the Reserve Bank may specify in this behalf ; Provided that omission of the Reserve Bank to give directions shall not have the effect of absolving the person committing the contravention from the consequences thereof. 16. Advance payment against exports :- (1) Where an exporter receives advance payment (with or without interest), from a buyer outside India, the exporter shall be under an obligation to ensure that - i) The shipment of goods is made within one year from the date of receipt of advance payment; ii) The rate of interest, if any, payable on the advance payment does not exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points, and iii) The documents covering the shipment are routed through the Authorised Dealer through whom the advance payment is received; Provided that in the event of the exporter's inability to make the shipment, partly or fully, within one year from the date of receipt of advance payment, no remittance towards refund of unutilised portion of advance pa....
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....esentation in the matter. 18. Project exports Where an export of goods or services is proposed to be made on deferred payment terms or in execution of a turnkey project or a civil construction contract, the exporter shall, before entering into any such export arrangement, submit the proposal for prior approval of the approving authority, which shall consider the proposal in accordance with the guidelines issued by the Reserve Bank from time to time. Explanation: For the purpose of this Regulation, 'approving authority' means the Working Group or the EXIM Bank or the Authorised Dealer. (P.R. GOPALA RAO) Executive Director 64 Website : www.fema.rbi.org.in Email : [email protected] Schedule ( Refer to Regulation 3) Form GR: To be completed in duplicate for export otherwise than by Post including export of software in physical form i.e. magnetic tapes/discs and paper media. Form SDF: To be completed in duplicate and appended to the shipping bill, for exports declared to Customs Offices notified by the Central Government which have introduced Electronic Data Interchange (EDI) system for processing shipping bills notified by the Central Gove....
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.... If yes, name of advising bank in India Customs Assessable value Rs. Bank through which payment is to be received (Rupees) Export value Verified Customs Appraiser Whether payment is to be received through the ACU Yes/No Date of Shipment Customs Appraiser No 67 Website : www.fema.rbi.org.in Email : [email protected] 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 above are true and that (a) *the value as contracted with the buyer is the same as the full export value declared overleaf/ (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 under the Act, I/we further declare that I/we am/are resident in India an....
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....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 above are true and that (a) *the value as contracted with the buyer is the same as the full export value declared overleaf/ (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 under the Act, 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 (Signature of Exporter) @ State appropriate date of delivery which must be within six months from the date of shipment, but for exports to warehouses established outside India with the permission of the Reserve Bank, the date of delivery must be within fifteen months. *Strike out whichever is ....
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.... not in Caution List of the Reserve Bank of India. Date: (Signature of Exporter) @ State appropriate date of delivery which must be within six months from the date of shipment but for exports to warehouses established outside India with permission of the Reserve Bank, the date of delivery must be within fifteen months. *Strike out whichever is not applicable. FOR AUTHORISED DEALER'S USE Uniform Code Number (i) negotiation Date of (ii) receipt collection Bill No. for (iii) . (ii) DP (iii) *Type of (i) DA (Specify) Bill Others 73 Website : www.fema.rbi.org.in Email : [email protected] (i) Firm Sale Contract (ii) Consignment Basis *Types of shipment (iii) Others (Specify) *Indicate ( ) in the box applicable The SDF Form was included in the Statement sent to 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 receip t Curren cy Credit to Nostro Account in Country Debit to NR Rupee Account of a Bank in country Perio....
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....e that I/we am/are the *SELLER/CONSIGNOR of the goods in respect of which the declaration is made and that the particulars given above are true and that *(a) the export value as contracted with the buyer is the same as the full export value declared above/*(b) the full export value of 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 above the foreign exchange representing the full export value of the goods on or beforet in the manner prescribed in rule 9 of the Foreign Exchange Regulation Rules, 1974. I/We further declare that I/we am/are resident in India and I/we have a place of business in India. 76 Website : www.fema.rbi.org.in Email : [email protected] I/We* am/are not in the Caution List of the Reserve Bank of India. +State approximate date of delivery which must be the due date for payment or within six months from the date of shipment, whichever is earlier. *Strike out whichever is not applicable. (For A.D.'s use) Date: (Si....
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....on/Kilogram/Litre/Cubic Metre/ Metre/Metre/Number/Others Sq. (Specify) ] ..... @ Where the full export 12. Analysis of export value : value is not ascertainable value Particulars Currency Amount expected on sale of goods in the oversease market may be shown @Full Export value No application for F.O.B. Value 79 Website : www.fema.rbi.org.in Email : [email protected] Freight for permission 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 ) 13. Customs Assessable Value (For Use) Export verified (Customs Appraiser) Customs (Rupees) Value 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 her....
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....name In the name oft Held with us Held witht 1 2 3 4 5 6 7 (+ Write the name of the concerned Indian Authorised Dealer branch). Any other manner of receipt (specify) (Stamp & Signature of Authorised Dealer) Date : . Address : Notes to Authorised Dealer : 1. Please ensure that the columns on the face of the PP Form have been completed by the exporter and that they have been duly authenticated by the Postal authorities wherever necessary. 2. On receipt of the full export value of the shipment declared on this Form, the Authorised Dealer will forward to the Reserve Bank this duplicate copy of the Form together with a copy of the Customs certified Shipper's Invoice, duly certified. In respect of shipments made on consignment basis, the Account Sales received from the consignee in original in support of the proceeds actually realised should also be forwarded along with this copy of the Form. 82 Website : www.fema.rbi.org.in Email : [email protected] 3. In case the net amount received falls short of the full export value declared on the Form for reasons other than deduction of bank charges, please indicate the authority conferred on the Au....
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....tee (a) Name and address of Authorised Dealer 85 Email : [email protected] Website : www.fema.rbi.org.in (b) Authorised Dealer Code No. (c) Any other arrangement (a) Name and address of Authorised Dealer e.g. advance payment, etc. including transfer/remittance to bank account maintained (b) Authorised Dealer Code No. overseas (Please specify) SECTION - B (For receipt of Royalty on Software Packages/Products exported) 12. Details of Software Package(s)/ Product(s) exported (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 Royalty agreement, if not already registered) 13. How royalty value will be realised (as defined in Royalty agreement) 14. Calculation of royalty amount (Enclose copy of communication from the foreign customer) 15. Name and address of designated Authorised Dealer in India through whom payment has been received/to be received A.D. Code No. 86 Website : www.fema.rbi.org.in Email : [email protected] SECTION -C 16. Declaration by expo....
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....thers service provider (Please specify) 9. Type of software exported (Please mark on the appropriate box on the left side). (a) Computer Software RBI Code 88 Website : www.fema.rbi.org.in Email : [email protected] Data Entry jobs and Conversion Software Data Processing 906 Software Development 907 Software Product, Packages 908 Others (Please specify) 909 (b) Other Software 910 Video/TV Software Others (Please specify) 911 Analysis of Export Value Currency Amount (a) Full export value Of which :- i) Net value of exports without transmission charges ii) Transmission charges included in invoice (b) Transmission charges (if payable 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)] 10. 89 Website : www.fema.rbi.org.in Email : [email protected] 11. How export value will be realised (mode of realization) (Please mark on the appropriate box) (a) Under L/C a) Name and address of Authorised Dealer b) Authorise....
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....lace: Date: (Signature of Designated Official of STPI/FTZ/EPZ/SEZ on behalf of Ministry of Information Technology) Stamp Name: Designation: 91 Email : [email protected] Website : www.fema.rbi.org.in For Authorised Dealer's use only Certificate by Authorised Dealer AD's Uniform Code No The SOFTEX Form included in the ENC statement sent to the Reserve Bank with the 'R' Return (NOSTRO/VOSTRO) for the period ending sent on ( Currency name ) 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 Receipt Currency Credit to Account in In our name Nostro (Country) In the name of ** Debit to Rupee Bank in Held with us Non-Resident Account of a (country) Held with ** Period of R- Return with which the realization has been reported to RBI 1 2 3 4 5 6 7 Debit to Rupee Bank in Held with us Non-Resident Account of a (country) Held with ** ( ** Write the name of the concerned branch of Authorised Dealer) Any other manner of receipt (Specify) Place: Date: (Signature of Authorised Official) ....
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....angement 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) 12. Details of Software Package(s)/ Product(s) exported (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 Royalty agreement, if not already registered) 13. How royalty value will be realized (as defined in Royalty agreement) 14. Calculation of royalty amount (Enclose copy of communication from the foreign customer) 15. Name and address of designated Authorised Dealer in India through whom payment has been received/to be received A.D. Code No. 95 Website : www.fema.rbi.org.in Email : [email protected] SECTION -C 16. Declaration by exporter I/We hereby declare that I/we am/are the seller of the software in respect of which this declaration is made and that the particulars given above are true and that the value to be received fr....
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....nt (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 reimbursement from his branch or correspondent outside India against payment for export from India, or against any other payment, shall be as mentioned below: 97 Website : www.fema.rbi.org.in Email : [email protected] Group Manner of receipt of foreign exchange (1) member countries in the Asian Clearing Union (except Nepal)namely, Bangladesh Islamic Republic of Iran , Myanmar ,Pakistan and SriLanka a) payment for all eligible current transactions by debit to the Asian Clearing Union dollar account in India of a bank of the member country in which the other party to the transaction is resident or by credit to the Asian Clearing Union dollar account of the authorised dealer maintained with th....
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....n 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 the Asian Clearing Union (except Nepal) namely, Bangladesh, Islamic Republic of Iran, Myanmar, Pakistan and SriLanka a) payment for all eligible current transactions by credit to the Asian Clearing Union dollar account in India of a bank of the member country in which the other party to the transaction is resident or by debit to the Asian Clearing Union dollar account of the authorised dealer maintained with the correspondent bank in the member country; and b) payment in any permitted currency in other cases (2) all countries other than those mentioned in (1). a) payment in rupees from the account of a bank situated in any country other than a member country of Asian Clearing Union or Nepal or Bhutan; or 99 Website : www.fema.rbi.org.in Email : [email protected] b) payment in any permitted currency. " (1 A) In respect o....
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.... forms due SOFTEX/SDF Amount / PP forms SOFTEX/ Amount SDF /PP forms Fully Realised Partly Realised (PART B) (Amount in Rs 000s) Details of Export Bills not Details of Extension / Reduction in invoice value/ Write off by the Exporter himself Extension/ Reduction in invoice value / Write off sought from AD Amount Revised due date Realised (partly or fully) within the prescribed period GR/SOFTEX/ Amount SDF/PP No. Amount Revised due date @ @ (1) (2) (3) Total NOTE : 1) The exporter should approach AD/RBI for extension of time in respect of bills in Column (3) in PART B. 2) Total of Bills in Column (2) in Part B should not exceed 10% of those in Column 1 of PART A 3) From 2005 onwards Bills in Column 1 of PART A will include those which have been extended for realization by the exporter himself or with the approval of AD/RBI. 4) In respect of export bills written off (including reduction in invoice value) evidence for surrender of export incentives to be enclosed. @ For cases of extension Exporters Signature : Verified by Authorised Dealer 102 Website : www.fema.rbi.org.in Email : [email protected] Annex- 5....
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....04 Email : [email protected] Website : www.fema.rbi.org.in 5. Details of exports made and proceeds realized during the period the preceding 3 years and outstanding at the end of the period. Financial Year Total exports made (Rs.) realised Amount (Rs.) Outstanding at the end of the period (Rs.) 6. Details of imports made Calendar Year Country Amount (Rs.) during the preceding 3 years, country-wise. Financial Year Country Amount (Rs.) 7. In case the account is proposed to be opened with a bank abroad, indicate the details of arrangements made for availing of loans/ overdrafts/lines of credit from the bank with which the account will be maintained. 8. Quarterwise projections of export receipts to be credited to the account and payments in foreign exchange (itemwise) to be made from the account under various heads, during the next year. 9. Whether the applicant's name has been/was placed on exporters' caution list at any time. 10. Details of foreign currency loan raised by the exporter and their maturity patterns. 11. Any other information that the applicant may like to provide in support of this application. Total exports made (Rs.) r....
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.... cover obtained (Yes /No) No. & date of bank certi- ficate issued Rema -rks Curr- ency Amount Curr- ency Amount Curr- ency Amount 12. 13. 14. 15. 16. 17. 18. Total 108 Website : www.fema.rbi.org.in Email : [email protected] Part III: Summary Part II Part I 'Cash' exports Export on consignment Undrawn balances Total Exports on deferred basis payment basis Rs. Rs. Rs. Rs. Rs. Outstandings as on (End of previous half-year) Add: Addition during the half- year under report Less: Deletion during the half-year Net position of outstanding as on (End of half-year under report) We certify that all export bills i.e. export bills purchased, negotiated and sent for collection, outstanding beyond the prescribed period / due date of realization of as at the end of half-year under report have been included in this statement. (Signature of Authorised Official) Name: Designation: Place: Stamp Date : **** ******* 109 Website : www.fema.rbi.org.in Email : [email protected] Appendix List of circulars which have been consolidated in the Master Circular on Export of Goods and Se....