Project Export and services Exports

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....rated outside India, from such exports, for investments in short-term instruments (with original or residual maturity of one year or less) including in treasury bills and in deposits with banks, outside India. Upto 30-09-2026 Project exports - Regulation 17 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 (1) Required prior approval before entering specific projects 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 of India from time to time. Required a Guarantee prior approval • In case a guarantee is required to be given prior to post award approval, the same may be issued by an authorized dealer bank/ a person resident in India being an exporting company, for perf....

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....bject to the satisfaction of the sponsoring AD Category - I bank(s) / Exim Bank and also subject to the reporting requirement and would be monitored by the AD Category - I bank(s) / Exim Bank. • b) Inter-Project transfer of funds - AD Category - I bank(s) / Exim Bank may permit exporters to open, maintain and operate one or more foreign currency account/s in a currency/currencies of their choice with inter-project transferability of funds in any currency or country. The Inter-project transfer of funds will be monitored by the AD Category - I bank(s) / Exim Bank. • c) Deployment of temporary cash surpluses - Subject to monitoring by the AD Category - I bank(s) / Exim Bank, Project / Service exporters may deploy their temporary cash surpluses, generated outside India investments in short-term paper abroad including treasury bills and other monetary instruments with a maturity or remaining maturity of one year or less and the rating of which should be at least A-1/AAA by Standard & Poor or P-1/-AAA by Moody's or F1/AAA by Fitch IBCA etc., and as deposits with branches / subsidiaries outside India of AD Category - I banks in India. • d) Repatriati....

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....tual 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. anticipated life of the goods to be exported, extent of foreign competition, nature of the foreign market and the contract value constitute the criteria for determining the overall terms of credit. Procedure for Clearance of Proposals • (i) Applications in the prescribed form are required to be submitted by the exporters sufficiently in advance to the Authorised Dealer / Exim Bank to enable to it to consider the proposal and grant a package clearance to it. • (ii) Exporters desiring to submit bids for execution of projects abroad including service contracts will not be required to obtain clearance for submission of bids from Authorised Dealer / Exim Bank. • (iii) Each project export contract or Service Export Contract involving Deferred Payments need to be approved either by AD/ EXIM Bank in India. Such approval need to be obtained on post award stage but before actual execution of the project. Post-award C....

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....ormance guarantee to the overseas employer in respect of the project as a whole especially for contracts in the field of erection/installation of plant and machinery as well as services like electrical or air-conditioning installations associated with civil construction work. • Such service contracts often involve high contract values and some are as complex in character as contracts for turnkey or civil construction projects. • They also involve direct and indirect foreign exchange liabilities by way of execution of performance/advance payments guarantees, counter-guarantees for loans/overdrafts raised from banks abroad and even considerable expenditure in foreign exchange on purchase of instruments/equipment of third country origin, which necessitates recourse to fund-based and/or non-fund-based facilities from Indian commercial banks, Exim Bank and ECGC apart from a variety of foreign exchange approvals. • All Service contracts involving deferred payment (DP) terms also require post-award clearance of authorised dealers/Exim Bank. • Consideration of proposals of Service Contracts on DP terms - The periods for which credit may b....