TaxTMI 
TaxTMI 
TaxTMI 
Export of Goods and Services – Project Exports
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....ubmit form DPX 1 / PEX-1 / TCS-1 for obtaining post-award approval was increased to 30 days of entering into contract and iii) A. P. (DIR Series) Circular No. 51 dated September 20, 2013 in terms of which submission of forms DPX1, PEX-1, TCS-1 and DPX-3 to the Regional Office of the Reserve Bank of India (Foreign Exchange Department) within whose jurisdiction the Head Office of the exporter is situated by the Approving Authority (AA), such as, the AD Bank / Exim Bank/ Working Group has been dispensed with. However, submission of these forms to ECGC and Exim Bank where their participatory interests by way of funded / non-funded facilities, insurance /risk cover, etc. are involved shall continue. 2. To further liberalise and simplify the procedure, it has been decided as under: i) The structure of Working Group (consisting of representatives from Exim bank, ECGC & RBI), which has hitherto been permitted to consider project exports and deferred service exports proposals for contracts exceeding USD 100 Million in value will now be dispensed with. The AD banks / Exim Bank can now consider awarding post-award approvals without any monetary limit and permit subsequent ch....
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....be offered by Indian exporters 27 Annexure II Standard conditions to be stipulated by Exim Bank/ authorised dealers for various facilities at the time of conveying post award approval for projects / service contracts 31 Annexure AB Quarterly statement showing value of shipments effected and advance / deferred instalments received in respect of exports under Deferred Payment Arrangements 38 Annexure III Forms Conditions subject to which remittance of agency commission in respect of pure supply contracts may be effected by authorised dealers. 39 Annexure III Forms Forms DPX 1 DPX 2 DPX 3 PEX 1 PEX 2 TCS 1 3 PEM MEMORANDUM OF INSTRUCTIONS ON PROJECT EXPORTS AND SERVICE EXPORTS Introduction 1. Export of engineering goods on deferred payment terms and execution of turnkey projects and civil construction contracts abroad are collectively referred to as 'Project Exports'. Project export contracts are generally of high value and exporters undertaking them are required to offer competitive credit terms to be able to secure orders from foreign buyers in the face of stiff international competition. Indian exporters offering deferred payment ....
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....ation, force majeure and arbitration clauses provided in the contract and penalty/damages payment provisions. (d) Extent of fund-based and non-fund-based facilities required in India including pre-shipment and post-shipment credit and/or bridge finance requirement. (e) In case of turnkey contracts, economic and technical viability thereof as well as special features relating to erection, supervision and commissioning of the contract. (ii) As regards civil construction contracts, the Authorised Dealer / Exim Bank will consider proposals only from contractors who are on the approved list of Ministry of Commerce and Industry, Government of India in order to ensure that only contractors having the necessary competence and capability undertake overseas construction contracts. While considering proposals, Authorised Dealer / Exim 5 Bank will endeavour to promote, wherever possible, the idea of high value construction contracts being undertaken on a consortium basis. Apart from examination of special features relevant to the proposal under consideration and the factors enumerated in sub-paragraph (i) above, Authorised Dealer / Exim Bank will also take into account the follo....
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....nce of proper record of exports made on deferred payment terms, exporters should prominently superscribe both copies of relative EDF/SDF with the name of export contract for which supplies are being made and the number and date of the approval granted by the approving authority (viz. Authorised Dealer, Exim Bank) noted on the EDF/SDF in the space provided therefor. The duplicate copies of the forms should be retained by authorised dealers duly certified after realisation of the last instalment together with interest from overseas buyers. Similar procedure should be followed by sub-suppliers also while declaring their exports on EDF/SDF. (ii) In connection with execution of projects, exporters may sometime be required to export 'consumables' such as tools, tackles, machinery spares etc. for which separate payments will not be made by the overseas buyers. Such consumables will have also to be declared on EDF/SDF in the same manner as exports of machinery, materials, etc. which are separately paid for. In such cases, authorised dealer may, on application, permit exporters to raise invoices against their own site offices abroad, send the shipping documents direct to those offices an....
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....seek the advice of Exim Bank or ECGC in regard to various risks inherent in extension of such long-term credits and ways and means of protecting themselves against these risks. Eligible Goods B.3 An illustrative List (in two parts, A and B) of engineering goods in respect of which commercial export credit may be offered by exporters to prospective buyers abroad is given in Annexure I. The list is subject to revision from time to time. Inclusion of goods in the lists does not imply that their exports may be made only on 8 deferred payment terms. Exporters should always endeavour to secure the best possible terms from their buyers so that foreign exchange accrues to the country as early as possible. Period of Deferred Credit B.4 The periods for which credit may be offered for export of goods, consumer durables, turnkey contracts and civil construction contracts will depend on merits of individual case and may be determined by the exporter and his banker in mutual consultation on the basis of commercial judgement. However, consumer durables and miscellaneous engineering goods (Part B of List) should ordinarily be exported on cash terms. Four major factors viz. antici....
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....ance required for meeting temporary shortfalls in working capital should not normally exceed 25 per cent of the contract value. However, authorised dealer / Exim Bank may clear proposals involving bridge finance in excess of 25% of contract value also wherever they are satisfied that such finance is necessary. (g) Ordinarily, deferred payment terms in respect of the services segment of a turnkey contract may be offered only if the competitors of the exporter from other countries are known to have offered similar terms. In such cases, other terms for the deferred receivables towards services like period of credit, rate of interest and security should be the same as offered for the supply portion of the contract. Note : Authorised dealer / Exim Bank may relax conditions at (d) and (e) above, if necessary, based on their commercial judgement. B.6 Cases where exporters desire to offer, due to local conditions, commercial credit not exceeding one year in respect of goods specified in Annexure I may be considered by the authorised dealers / Exim Bank as per powers delegated to them. Post-award Clearance of Proposals B.7 (i) After entering into contract, the exporter should....
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....cover is desired to be obtained from it. In cases where ECGC agrees to extend counter-guarantees /insurance cover, the authorised dealer / Exim Bank should, while granting clearance, advise the exporter that they will become effective only after the guarantee commission/ deposit premium as prescribed by the Corporation is paid to it. (iv) While according package approval, authorised dealers / Exim Bank should specifically indicate in the approval letter, the terms of clearance giving, inter alia, the break-up of contract value with details of Indian, third country and local supplies and services, payment terms, currency of payment, rate of agency commission, amount of overseas borrowings, funded and non-funded facilities with respective shares of different agencies therein, the value of plant, machinery, equipment etc. to be exported on reimport basis and the extent of ECGC cover guarantee. (v) If there are any Indian sub-contractors, they should be advised by the prime contractor to submit similar applications to the bankers of the prime contractor for obtaining approval for the portion of the contract entrusted to each sub- contractor. The institution which will consider th....
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....arly indicate the fact of completion of the project and full compliance with the requirements relating to completed projects as laid down in paragraph B.10. 12 Requirements relating to Completed Projects B.10 (i) Exporters executing turnkey/construction contracts abroad should take the following steps after completion of the contracts: (a) close the foreign currency accounts and transfer the balances to India; (b) wind up site and liaison offices opened abroad; (c) ensure that the guarantees for performance of the contract and other guarantees issued are cancelled and returned to exporters; (d) liquidate fully overseas borrowings/overdrafts obtained, if any and cancel counter-guarantees; (e) make suitable provision for payment of taxes, customs and other statutory obligations in the country of project; (f) dispose of the equipment, machinery, vehicles, etc. purchased abroad and/or to arrange their import into India. [ In case the machinery etc. is to be used for another overseas project, the market value (not less than book value) should be recovered from the project to which equipment/machinery has been transferred ] (g) recover funds, if any, transfe....
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....to provide the credit. The following principal factors will weigh with Exim Bank while considering proposals under the Buyer's Credit Scheme: a) Competence and capability of the exporter in executing the proposed contract. b) Commercial justification for the contract c) Economic viability of the overseas project for which the credit is required to be offered. d) Creditworthiness, standing and financial position of foreign borrower and general economic conditions of buyer's country. (ii) Since payments to exporters in India in respect of exports financed under buyer's credit will be made on behalf of non-resident buyers, permission of Reserve Bank under Regulation 3 of Notification No. FEMA 3/2000-RB dated 3rd 15 May 2000 [Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000] should be obtained by banks in India before agreeing to extend buyer's credit to importers abroad. The necessary applications for the purpose should be made by authorised dealers to Reserve Bank in form DPX 3 after the proposal is cleared in principle. Where two or more authorised dealers are participating with Exim Bank, the application should be made by the p....
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.... Bank if no facilities are required. Resident individuals, firms and companies may, therefore, freely provide consultancy/technical/management services to overseas clients subject to the condition that the income earned abroad minus expenses will be promptly repatriated to India through normal banking channels. Individuals/firms/companies executing service contract in computer software should, however, repatriate the profits to India. Indian companies/firms executing service contracts abroad, requiring facilities like opening of foreign currency bank accounts and site offices abroad, etc. will need approval from Authorised Dealer/Exim Bank. In the case of exporters executing software service contracts abroad, authorised dealers may permit remittances towards maintenance expenses of the persons deputed abroad to execute such contracts, out of receipts of advance/down payments in respect of the contract from the overseas client and on submission of a declaration by the exporter that the aggregate exchange facilities already availed of / to be availed of for execution of the contract would be within the overall ceiling of project related expenses viz. 70% of the contract value. ....
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.... non-repatriable local currency. Note : Condition at (b) above regarding mobilisation advance may be relaxed by authorised dealer / Exim Bank on merits of each case on the basis of their commercial judgement. 17 Pre-requisites for consideration of proposals of Service Contracts on DP terms C.4 The periods for which credit may be offered in respect of a service contract will depend on merits of each individual case and may be determined by the exporter and his banker in mutual consultation on the basis of commercial judgement. The moratorium will be available only for the principal amount and not interest and should not exceed one year. The authorised dealers/Exim Bank will consider proposals for clearance of service contracts abroad on DP terms at post- award stage subject, inter alia, to the fulfillment of the following conditions in addition to those at paragraph C.3(a), (c) & (d). a) The rate of interest on deferred receivables should cover fully the cost to the exporter of export credit to be availed of from the Indian banking system. Periodicity of repayment of principal and payment of interest should not exceed half-yearly intervals. b) Ordinarily, payment t....
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.... contracts as per paragraph B.10 of Memorandum PEM. (iii) The procedure outlined in paragraph B.7 in respect of project export proposals should be followed, mutatis mutandis, by authorised dealer/Exim Bank while granting post-award clearance. Follow-up of Service Contracts C.6 Exporters executing service contracts abroad should furnish progress reports at half yearly intervals ending June and December of each year to institutions concerned in the same manner as stated in paragraph B.9 through their bankers. Requirements relating to Completed Projects C.7 Exporters should comply with the requirements laid down in paragraph B.10 in regard to submission of reports, statements and documentary evidence after completion of the service contracts abroad. 19 PART D - OTHER MATTERS CONNECTED WITH PROJECT EXPORTS AND SERVICE EXPORTS Foreign Currency Accounts/Site Offices Abroad/ Agency Commission/Financial Requirements D.1 (i) Project/ Service exporters may avail of facilities such as opening of foreign currency accounts, temporary site offices, payment of agency commission and availing of temporary overseas borrowings subject to the conditions as may be stipulated ....
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....in such account and no overdraft in the account shall be permitted. c) The balance in the account will be subject to SLR / CRR requirement as prescribed by Reserve Bank (DBOD) from time to time. Approving authority may on request allow such of the project / service exporters, as have been permitted to open foreign currency account in India, to pay their Indian suppliers / service providers in foreign currency from foreign currency account subject to the following conditions : a) Project / service exporter should not claim export benefit on the payment made to Indian supplier / service provider. b) Indian supplier of goods / services should comply with export procedure as per provisions / requirements of Foreign Exchange Management Act, 1999. (ii) In cases where adequate advance payment or an overdraft/loan abroad cannot be arranged, authorised dealer monitoring the project on an application by the project exporter, may allow remittance from India provided such remittance has been approved by the authorised dealer / Exim Bank granting clearance to the project export proposal at the post award stage. Authorised dealer may allow such remittances after obtaining an under....
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....third country imports approved by the approving authority while according post-award clearance to the project export proposal and payments under such letters of credits are made out of project receipts. (ii) In respect of third country purchases by the exporter for execution of the project / service contract abroad, which are directly transported by the overseas supplier to the project site and for which payment is proposed to be made under letter of credit opened with banks in India, authorised dealer on an application made by the exporter, may grant waiver for submission of the exchange control copy of the bill of entry subject to the conditions that (a) the third country purchases have been approved by the concerned approving authority while according post-award approval to the project / service export proposal and (b) the exporter submits the invoice raised on him by the overseas supplier in respect of the goods supplied by him direct to the project site as also documentary evidence for having received the goods at the project site. 22 Inter-project transfer of funds D.3 Requests from the project exporters executing turn-key/construction/service contracts abroad for....
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....pment abroad, where necessary. Approval will be given by approving authority, 23 provided the equipment will be paid for fully out of payments to be received for the services segment of the contract. Full details of such purchases should be reported in the half-yearly statements of foreign currency accounts supported by documentary evidence. Similarly, some exporters may be required to purchase abroad motor vehicles necessary for execution of their contract. Requests for permission to purchase vehicles abroad will be considered by the approving authority on merits of each case. (iii) Exporters may also obtain construction etc. equipment abroad on hire against payment of hire charges out of foreign currency receipts in respect of service segments of their contracts. (iv) Exporters may freely use the equipment for performing any other contract secured by them in the same or any nearby country. They may, if they so wish, also sell the equipment or give it on hire to other contractors abroad, provided the full amount of sale proceeds or hire charges, as the case may be, is repatriated to India promptly through normal banking channels. Documentary evidence showing repatriati....
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.... Guarantee, if they so desire, subject to the condition that the amount of such guarantee shall not exceed 5% of the contract value. Exporters, however, have to ensure that provisions contained in Memorandum PEM and other instructions issued by Reserve Bank from time to time for submission of bids are complied with. (iii) In terms of Reserve Bank Notification No.FEMA 8/2000-RB dated 3rd May 2000, project/service exporters, have been granted general permission to furnish their own Corporate guarantees for performance of the contract or for availing of fund-based and/or non-fund based facilities from banks/financial institutions abroad for the purpose of execution of projects abroad subject to approval of approving authority at post award stage. The details of guarantee/s issued as above should be reported by the project/ service exporters to the concerned Regional Office of Reserve Bank (FED) as also to the concerned authorised dealer/Exim Bank who had cleared the proposal, within 15 days from the issue of such guarantee/s. Guarantees for Borrowings Abroad D.8 In all cases where exporters executing turnkey/civil construction/service contracts abroad are granted an approval ....
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....i steel plants (electric arc and reduction furnaces). Re-heating and heat treatment furnaces, Rolling Mills and other finishing lines for ferrous and non-ferrous metals. 30. Ice-making machinery 31. Industrial boilers 32. Industrial furnaces 33. Industrial switchboards, Control panels, circuit breakers, air break switches 34. Jute machinery 35. Leather tanning and processing machinery 36. Machine tools 37. Machinery for manufacturing air conditioners, bicycles, corks, electrical goods, enamel-ware, hard board, metal containers, radios, razor blades, refractories and bricks, sewing machines, shoes, steel furniture, wire-ropes and cables etc. 38. Machinery for manufacturing any product figuring in Part B of this List, not specified separately in this Part. 39. Material handling equipment like fork lifts, electric lifts, cranes, hoists etc. and conveyor systems. 40. Metal working machinery 41. Mining machinery 42 Motor vehicles and chassis, including three-wheelers 43. Oil drilling rigs 44 Oil refinery equipment 45. Packaging and weighing machinery 46. Pile foundation machinery 47. Plastic machinery 48. Power generation, transmi....
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....ic electric appliances 83. Drugs and pharmaceuticals 84. Electrical equipment including low tension insulators, batteries and accumulators, parts of electrical machinery and lamps fuses and electrodes for industrial application. 85. Electronic components. 86. Electronic goods including radios, TV, public address systems, record players, tape recorders. 87. Fibreglass, PVC and plastics based products including pipes and tubes, tyre cord. 88. Ferrous/non-ferrous castings, forgings, stampings, extrusions and rolled products. 89. Ferrous/non-ferrous pipes, tubes, sheets, strips, foils, rods, wires, wire ropes 90. Heating and cooling equipment including air conditioners, refrigerators, water coolers. 91. Industrial rubber products including tyres and tubes, cots and aprons, conveyor belts, rubber rollers, hose pipes. 92. Instruments for measurement, scientific survey and for surgical applications. 93. Industrial fasteners, bearings, valves, gears and gaskets. 94 X-ray and other electro-medical and other hospital equipments 95. Office equipments including typewriters, calculators, duplicators, teleprinters. 96. Metal and plastic furniture 97. ....
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....r: 2. Name & address of the buyer : 3. Name of the project Particulars As per last during the Total quarter Report A. Receipts 1. Opening balance 2. Receipts from buyer towards (advance/down/progress payments) (a) supplies from India (b) Third country local supplies (c) Services (d) Reimbursable expenses (e) Extra claims (f) Others (if any) 3. Remittances from India 4. Inter project transfers 5. Transfers from other accounts (short-term deposits/other foreign currency accounts) 6. Others 7. Total of (A): B. Expenditure 1. Third country/local supplies / Indian supplies 2. Site office expenses 3. Taxes/duties 4. Freight/insurance 5. Purchase of construction equipment/ Machinery /tools/ tackles etc. 6. Agency commission 7. Short term deposits 8. Inter project transfer 9. Repatriation to India 10. Others 11. Total of (B) 12. Closing balance (A-B) (Note : Separate statement should be furnished for each account maintained in local/foreign currency) 32 h) The balance in the account in excess of normal requirements should be repatriated to India periodically. If, however, ex....
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....d by Exim Bank / Authorised dealer, at post-award approval stage viz. not exceeding may be made freely. (Value of such supplies) e) Debits representing transfer of funds to the project site, bank charges and project related expenses in rupees may also be made freely. 33 f) Debits for transfer of funds to rupee account in case payment made by the client for supply of material / equipment from India has to be temporarily credited to the account and for conversion of balance in the account into Indian rupees at the end of the contract may be made freely. g) All other credits / debits will require prior approval of approving authority / Reserve Bank of India. h) The account shall be closed immediately after completion of the project and the entire balance should be transferred to rupee account and / or EEFC account as the case may be as per prevailing guidelines. i) Project funds temporarily rendered surplus may be invested in short term deposits, not exceeding one year and on maturity, they should be transferred to the project foreign currency account. However, maturity period of the fixed deposit should not, in any case, go beyond the date of completion of the pr....
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....Raising of Foreign Currency Loans/Overdrafts Abroad against Bank Guarantees from India for bridging temporary shortfall in cash flow a) It will be in order for the project/service exporter to arrange to raise foreign currency borrowings overdraft etc. from a bank abroad not exceeding in value. The exporter should, however, within 15 days from the date of grant of financial accommodation furnish to the authorised dealer details of the account number, name of the bank, place and country where such account is maintained for the purpose of raising loan / overdraft. b) Overdraft/loan limit shall be operated in accordance with the approved cash flow statement and the outstanding balance should not at any time exceed the limit sanctioned by Exim Bank / authorised dealer while granting post-bid clearance. c) The entire amount of overdraft/loan together with interest will have to be liquidated out of payments to be received from the overseas employer on account of the services segment of the contract and no remittance from India will normally be allowed either for repayment of the overdraft/loan or for payment of interest. d) The export value of goods supplied from India and dec....
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....e Approving Authority does not bind the Exim Bank/ ECGC/Import Trade Control authorities regarding grant of Exim Bank financial assistance / ECGC cover/ import replenishment / third country imports as these are to be dealt with by the respective authorities. 2. The following procedure in respect of the exports to be made under the approval should be observed scrupulously: a. All copies of EDF forms covering exports under the contract should be prominently superscribed in Red Ink as under: Exports under Deferred Payment Arrangements. Approving Authority's approval No. dated . In all communications with the Reserve Bank / Approving Authority, the number and date of the approval should invariably be cited. b. Exporter should submit to Reserve Bank of India and the Approving Authority, a quarterly statement showing the total value of shipment 36 effected as also advance payment / deferred instalments received etc. as per Annexure AB, within ten days from the close of the quarter. This statement should be submitted till all the payments are fully realised. In case there is no transaction to report for a particular quarter a "Nil" statement should be submitted. ....
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....bmitted by exporters after award of contract for export on deferred payment/turnkey basis A. Instructions : The application should be completed in six copies and submitted to an authorised dealer along with six copies of the contract, within fifteen days of entering into contract with the overseas buyer. B. Documentation: Certified copies of the documents, listed in item XII of the application form. I. Exporter Name & Address (other details as per Annexure I). II. Overseas Buyer a) a) Name and Address b) Constitution (Indicating whether a private or Government undertaking b) c) Details of any Indian participation in the capital structure of the buyer or association with buyer in any other manner. c) d) d) Main lines of activity e e) Whether the project is being financed by World Bank/ADB, etc. f) Brief particulars of the overall project to which the present application relates f) g) g) Exporter's past experience with the Buyer, if any. III. Prime Contractor (If other than overseas Buyer) Name & address 40 IV. Export Contract a) a) Date of signing b) b) Effective date c) c) Completion / maintenance period (if any)....
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....ription (Nature of services (g) being rendered, whether turnkey or supervision of erection/ commissioning ) 1. 2. Value 2. (ix) Time schedule for shipments 42 3. Payment terms 3 % Amount a) Advance Payment a) b) Progress Payments c) Deferred Payments/ Retention Money b) c) 4. Number and amount of instalments relating to deferred receivables 4. 5. Security 5. 6. (a) Currency/ies of payment (a) (b) Is there an exchange variation (b) clause? If not, will the exchange risk be covered under ECGC Scheme in respect of deferred receivables, where allowed? (Cost of forward cover, if any, should be built into the tender/offer) 7. Rate of interest on deferred receivables 7. (h) Third country imports (h) (a) Reasons for third country imports (a) (b) Nature of imports, estimated cost, names of suppliers and country of supply (b) (c) Have firm quotations been obtained? If so, how long are they valid? (c) (d) Terms of payment, Are L/Cs required to be opened in favour of suppliers? (d) (e) Will any warranty/Bank guarantee be forthcoming from supplier/s. If so, particulars such as percentage, amount, validity, etc. should be furnished.....
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....r execution of the contract, If so, whether these are to be procured on hire / lease basis or are to be purchased abroad or are to be exported from India on reimport basis, or are to be transferred from other project abroad. Please furnish particulars thereof with value. 45 VIII. Cost & Profitability Estimated profit - amount and % (Annexure III to be completed ) IX. ECGC cover Nature of the ECGC insurance proposed to be obtained. (State whether ECGC quotations have been obtained. If so, furnish rates quoted and certified copies of the relevant correspondence with the Corporation). X. Arrangement for Bank Finance a) Name/s of the exporter/s banker/s a) b) Arrangements made or proposed to be made for obtaining finance during the pre and post shipment stages and guarantee facilities for executing the export order. b) Credit and other facilities (a) Guarantees and letters of credit (a) Amount (Foreign Currency and Rupees equivalent) Period for which required I. Advance Payment Guarantee I. II. Performance Guarantee II. III. Retention Money Guarantee III. IV. Guarantee for borrowings abroad/or IV. V. remittances on repatriation basis V. VI. Any ot....
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....icated in Annexure III. (ii) Statement of probable period of utilisation of the post-shipment credit as per Enclosure. (iii) Cash flow statements in the case of turnkey projects (i) (ii) (iii) Any other relevant information We apply for grant of approval for exports on deferred payment terms/turnkey basis as per details furnished above. We hereby certify that the particulars given above are true to the best of our knowledge and belief. STAMP (Signature of Authorised Official) Name: Place : Designation : Date: Note : Where applicable, amounts are to be stated in foreign currencies and also their Indian rupee equivalent. 48 Enclosure to Form DPX 1 (Item XII(f)(ii) of Form DPX 1) Projections of post-shipment credit requirements Quarter Quarter Quarter Half year Half year Half year Total 1 2 3 4 5 6 7 1. Outstanding at the beginning 2. Advances availed of during the period 1. Total of 1 & 2 2. Less instalments, if any, received from the importer 3. Outstandings at the end of the period N.B. Quarterly figures to be given till the limit is expected to be fully drawn, thereafter, figures may be furnished quarterly/half-yearly/y....
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.... (iii) Taxes (to be specified) (iii) 8. Royalty on the export sales 8. 9. Overseas agent's commission/fee 9. 10. Other commission and service charges 10 11. Interest at the pre-shipment stage 11. 12. Interest at the post-shipment stage (net)* 12. 13. ECGC premium relating to 13. (a) Policies (a) (b) Counter-guarantees (b) Domestic Costs Foreign Exchange Costs currency Local Costs 52 14. Miscellaneous (including cost of forward cover) 14. 15. Contingencies 15. (i) Provision for cost escalation (ii) negotiating margin, if any (iii) any other iii) 16. Sub-total 16. 17. (i) Freight (outward) 17. (i) (ii) Insurance (ii) 18. Total cost 18. 19. Sales value 19. 20. Net profit/loss (19 minus 18) 20. 21. Export Incentives 21. (a) Duty draw-back (a) (b) Others (to be specified) (b) 22. Total profit (20 plus 21) 22. *Net of lower rate, if any, charged to buyer than the prevailing interest rate on the post-shipment deferred credit in India should be indicated as cost. 53 DPX 2 Progress Report from Exporter (Para.B.9 of PEM) Serial Number of the report Period covered (June / December every....
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....l amount of work bills submitted (i) so far (ii) (ii) Amount of work bills certified for payment by the buyer (iii) (iii) Amount of work bills paid by the buyer (iv) (iv) Amount of work bills awaiting payment (v) Reasons for delayed/with held (v) payment (h) (h) In case of deferred credit for services, please indicate the progress of payments (i) Amount receivables (showing the (i) due dates from the beginning of the contract till the date of the report) (ii) Amounts paid by foreign buyers (ii (iii) (iii) Amounts actually repatriated to India 56 VII. Progress Payment (i) Rs. (i) Total value of contract (ii) Rs. (ii) Bills submitted (iii) Rs. (i) Bills certified (iv) Rs. (ii) Bills paid ( v ) Rs. (iii) Bills outstanding (vi) Rs. (iv) Amount repatriated to India so far (vii) (v) Reasons for delay (viii) % (vi) Physical completion of contract VIII. Third country imports (a) Total value as per Contract (a) (b) Particulars of orders placed with suppliers (b) (c) (c) Anticipated/Actual date of commencement of shipment (d) (d) Anticipated/Actual da....
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....te/s for repatriation (d) Amounts repatriated (d) XIV. Particulars of repatriations (Amount in Rs.) Upto last half year (a) Supply of goods During the half year Total (b) Supply of services (c) Reimbursement of rupees expenses (actuals) (d) Reimbursement of non-cash expenses debited (e) Against remittances from India (f) Profit (g) Others (specify) XV. Any other information which exporter may like to furnish (such as Inter-Project transfer of funds, etc.) We hereby certify that the particulars given above are true to the best of our knowledge and belief. STAMP (Signature of Authorised Official) Date : Name: Designation: Name & address : of firm/company CERTIFICATE OF AUTHORISED DEALER It is certified that the particulars furnished above have been verified with reference to the records maintained by the bank and the same have been found to be correct STAMP (Signature of Authorised Official) Name: Date : Designation: 59 Annexure to Form DPX 2 (Item IV of Form DPX 2) 1. Information on back-to-back arrangements with sub-suppliers Brief description Value of Date of signing of goods/services back-t....
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....ened abroad in connection with the work; if so, details thereof 10. (a) Whether the manufacture of the goods exported from (a) India involves import of raw materials/ components; if so, a broad description of the imports needed and value thereof (b) Whether any import licence has been issued (b) (c) Extent of export incentives available on the export of (c) goods/services from India 11. Whether the shipments to the overseas buyer will be effected in foreign vessels and if so, details of the freight payable (applicable in the case of C&F and CIF contracts) 12. The amount of credit to be granted to the foreign buyer/banker. Please furnish brief details of financing. (Ratio of participation by the financing institutions in the credit scheme) 13. Details of repayment of the credit by the foreign buyer (a) Schedule of repayment agreed upon (Schedule may be enclosed separately) (a) (b) Rate of interest on credit (b) (c) Currency of repayment (c) (d) Exchange risk, if any (d) 14. Is there any guarantee for repayment of the credit by the foreign buyer? If so, details thereof. If not, what is the security for the credit proposed to be granted? 1....
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....inancial and management aspects (h) (i) Whether the applicant is on the approved list of OCCI (MOC) ? (i) (j) Details of the overseas contracts with which the firm is associated (country, nature of the contract, value, present position) (j) (a) Contracts under execution (a) (b) Contracts awarded and to be taken up (b) (c) Contracts tendered for and not yet decided, indicating the prospects (c) 64 2. Name and address of the overseas buyer: (i) Nature of constitution indicating private, public sector or Government undertaking (i) (ii) If there is any Indian participation in the capital structure, etc. of the overseas employer, broad details may be indicated (ii) (iii) Main lines of activity (iii) 3. Status of exporter : State whether Prime Exporter or Consortium Member (a) If a Prime Exporter - (a) (i) Name/s and address/es of major sub- supplier/s (i) (ii) Nature of goods/services relating to each sub- supplier/s and value thereof (ii) (iii) Payment and other back-to-back arrangements with sub-supplier/s (iii) (iv) Past experience of major sub-supplier/s (v) Details of banking arrangements made by sub-suppliers for the contract (iv) (v....
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....ceivable (vii 6. Currency of payment (i) In respect of supply of goods (i) (ii) In respect of services portion (ii) (iii) If currency of payment is Indian Rupees, whether payments will be received under any bilateral trade and payments agreement (iii) (iv) If currency of payment is not Indian Rupees, will there be an exchange variation clause ? If not, how is exchange risk proposed to be covered ? (iv) 7. Security Nature of security to be furnished by the buyer for: (a) Down payment (a) (b) Progress payment (b) (c) Deferred receivable and interest (c) 67 8. Foreign Exchange Outgo (a) Break-up Amount Percentage of (i) CIF cost of raw materials and components proposed to be imported into India for the execution of the order or value of import replenishment entitlement whichever is higher Contract Value NOTE:If the item of export is not manufactured by the exporter, then this information should be collected and furnished here by the exporter. (ii) Freight on exports (iii) Third country imports (iv) Agency commission/fees (v) Interest on overseas borrowings / other charges (vi) Remittances of royalty payment, if any, and Exchange....
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....e position of availability of required skilled and unskilled labour in the importing country ? (e) (f) What are the general living conditions regarding accommodation, water and power in the area where the contract is to be executed? (f) (g) Brief account on Taxation provisions affecting repatriation of salary and profits (g) 70 15. Overseas organization proposed to execute the contract (a) Place/s where site/liaison office/s will be required (a) (b) Staff and organization at the site/liaison office (b) (c) Estimated expenditure on the site/liaison offices (c) (d) Who will be the leader of the overseas work? What is his background? (d) (e) What are the special arrangements proposed by the Head Office to co- ordinate and monitor the progress? (e) 16. Overseas expenditure Amount and nature of overseas expenditure involved [Please attach currency-wise cash-flow statement (monthly or quarterly) for Indian, third country and local portion (separately) covering the contract period including maintenance] 17. Agency commission (a) (a) Name and address of overseas agent (b) Nature of services to be rendered by agent (b) (c) Percentage and amoun....
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....he leader And other members of the consortium/joint bidders should also be furnished. (iii) (iv) Details of sub-contractors in Annexure II to this form. Copies of recent Annual Reports and write- up on activities of sub-contractors should also be furnished (iv) (v) Currency-wise cash flow and consolidated cash flow statements for the project. (v) 73 PART B - FACILITIES REQUIRED BY EXPORTER 1. Banking Arrangements Name/s and address/es of the bank/s in India from whom facilities are proposed to be obtained 2. Facilities Required Period for which required Amount Rs. Lakhs (a) Fund-based Facility (a) (i) Preshipment credit (i) (ii) Deferred Credit (ii) (iii) Credit against export incentives (iii) (iv) Other credit facilities (Please specify) (iv) (b) Non-funded Facilities As%of Currency Equivalent Period Contract of issues Indian Rs. Value & amount in lakhs (i) Advance payment guarantee (ii) Performance guarantee (iii) Retention Money guarantee (iv) Guarantee for borrowings abroad (please furnish currency wise cash flows in support) (v) Other guarantees and L/Cs etc. (Please specify) (Please attach specimen forms of g....
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.... in lakhs of rupees) Value of items Value of items to be Value of items to Value of items Total to be exported purchased in the be purchased to be trans- from India from third ferred from countries other projects country where the contract is to be executed Value 1. Machinery required to be installed as part of the project@ 2. Construction equipment* 3. Materials required for construction* @ The particulars of the major items included under this head may be furnished as under: Description of the machinery Value (in lakhs of rupees) * The value shown against these heads should tally with that shown against item 10 of the application 78 Appendix II to Form PEX 1 [Item No.23(f)(ii) of PEX 1] Estimates of cost of construction and profitability (Amounts in lakhs of rupees) Domestic costs Foreign exchange costs Local currency costs Total 1. Cost of goods (i) Raw materials and components (excluding duties) indigenous Imported: (a) into India (b) direct into importing country (ii) Machinery and equipment other than that required for use in contract (i.e. supplied for installation) 2. Direct labour 3. Depreciation on equipment used (....
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....n to be submitted by exporters after award of contracts for rendering managerial/technical/consultancy services abroad Instructions : The application should be completed in six copies and submitted to authorised dealer alongwith six copies of the contract, within fifteen days of entering into contract with the overseas buyer Documentation : 3. Certified copies of the documents listed in item XXIII of the application form. PART A - GENERAL I. Exporter (a) Name and address of the exporter (a) (b) Exporter's Code No. (Details to be given in Annexure I) (b) II. Overseas Buyer/Employer (a) Name and address (a) (b) Nature of constitution indicating whether private, public sector or Government organisation (c) If there is any Indian participation in the capital structure, etc. of the overseas employers, broad details may be indicated (b) (c) (d) Main lines of activity (e) Explain past experience, if any with buyer/employer (d) (e) 81 III. Name and Address of Prime Contractor (If other than overseas buyer) IV. Export Contract (a) Date of Signing the contract (a) (b) Effective date (b) V. (a) Description of the proposal mentioning the ....
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.... Interest on overseas borrowings and other charges EEEE (v) (vi) Remittances of royalty payment, if any, and Exchange Control approval therefor. (vi) Total (b) Nature of raw materials and components to be imported into India (b) IX. X. (i v) Agency commission/fees (v) Interest on overseas borrowings and other charges EEEE (v) (vi) Remittances of royalty payment, if any, and Exchange Control approval therefor. 84 XI. Third Country Imports (a) Total Value (a) (b) Nature of imports, estimated cost, names of suppliers, country of supply, schedule of delivery, price and terms of payment quoted to ultimate buyers and profits and mark up (Attach statement) (c) Payment terms for third country imports vis-Ã - vis terms offered by overseas buyers. Would any letter of credit be opened on back-to-back basis ? If not how financing of third country imports will be done should be precisely explained. (b) (c) (d) (d) Currencies of payment (e) (e) Details of financing arrangements, if any, required abroad by the exporters XII. Agency Commission (a) Name and address of overseas agent (a) (b) Nature of services to be rendered by agent (b) ....
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.... in the importing country ? (e) (e) What is the position of availability of required skilled and unskilled labour in the importing country? (f) What are the general living conditions regarding accommodation, water and power in the area where the contract is to be executed (f) XVI. Arrangement for Procurement Please furnish information regarding tie-ups for sub-contracting and services as per Annexure IV 87 XVII. Equipment, Tools and Tackles (a) Particulars and value of construction equipment, tools and tackles and materials required from India, third country and country where project is to be executed for execution of the contract. (a) (b) (b) Estimated value of the above equipment etc. on reimport/sales after completion of contract XVIII. Plans for Execution of Contract (a) (a) Mobilisation plan for men and materials (b) Proposed programme of work with time schedule, PERT and Bar Chart (b) XIX. Overseas Organisation Proposed to Execute the Contract (a) Place/s where site/Liaison Office/s will be required (a) (b) (b) Staff and Organisation at the Site/Liaison Office (c) (c) Estimated expenditure on the site / offices (d) (d) Who will ....
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....are proposed to be obtained (2) Facilities (a) Funded Facilities Amount Period for which required (i) Preshipment credit Rs. Lakhs (ii) Deferred credit (iii) Credit against export incentives (iv) Other credit facilities (please specify) (b) Non-funded Facilities As%of Currency the con- of issue tract and value amount Equivalent Indian Rupees (Lakhs) (i) Advance payment guarantee (i) (ii) (iii) (ii) Performance guarantee (iii) Retention Money guarantee (iv) Guarantee for borrowings abroad (please furnish currency-wise cash flow in support) (iv) (v) Other guarantees and L/Cs etc. (please specify) (v) (Please state period of guarantee against each item.) (iv) Guarantee for borrowings abroad (please furnish currency-wise cash flow in support) 90 (3) Other Facilities Number Location (i) Site office/s overseas (i) (ii) Liaison office/s overseas (ii) (iii) Overseas bank account/s (if more than one is required, reasons thereof) (iii) (iv) Agency commission (amount and percentage) (iv) (v) Initial remittance required (Rs.)/ Inter project transfers subject to repatriation / retransfer within .... months) (v) (vi) Any oth....
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....ollowing (m) (i) Particulars of consultancy/technical service jobs completed and under execution both in India and abroad. The particulars should, inter alia, show date of contract, value of contract, name and address of the buyer, description and scope of work, date or expected date of completion, percentage of work completed, whether contract ended/will end in profit/loss, amount of foreign exchange repatriated to India (year-wise), profit generated in India, extent of loss, if any, and the amount of remittance allowed from India to meet the loss. (ii) Particulars of outstanding tenders/offers, relating to consultancy/technical services contract. (i) (ii) 94 ANNEXURE II to Form TCS 1 (Item XIII and XXIII (f)(i) of Form TCS1) Cost and Profitability Statement Details Rupee Costs Foreign Currency Costs Local Currency Costs Total 1. Materials 1 (a) Indigenous (a) (b) Imported into India (including canalized items) (b) (c) Direct into importing country (CIF (c) Value) 2 2. Know-How/Technical Assistance 3 3. Salary and Wages of Technical and Other Personnel 4 4. Description of Equipment at Site 5 5. Overheads (Accommodation etc.) 6 ....