Master Circular on Export of Goods and Services
06/2010-11 Dated:- 1-7-2010 Master Circular
FEMA
Master Circular on Export of Goods and Services
Master Circular No. 06/2010-11
Dated 1-7-2010
Export of Goods and Services from India is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange Management (Current Account) Rules, 2000, as amended from time to time.
2. This Master Circular consolidates the existing instructions on the subject of “Export of Goods and Services from India” at one place. The list of underlying circulars/notifications consolidated in this Master Circular is furnished in Appendix.
3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 01, 2011 and be replaced by an updated Master Circular on the subject.
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18
B.18
Export of Goods on Lease, Hire, etc.
19
B.19
Export on Elongated Credit Terms..
19
B.20
B.21
Export of goods by Special Economic Zones (SEZs).
Project Exports and Service Exports.
19
20
B.22
Export of Currency…
21
B.23
Forfaiting…….
.22
B.24
B.25
Exports to neighbouring countries by Road, Rail or River
Border Trade with Myanmar..
22
.23
B.26
Repayment of State Credits
.23
B.27
Counter-Trade Arrangements with Romania..
.23
PART-3
.24
C.
Operational Guidelines for AD Category – I banks
C.1
Citing of Specific Identification Numbers.
C.2
GR/SDF/PP/SOFTEX procedure…
.24
22222
24
24
C.3
GR forms.
.24
C.4
SDF
.26
C.5
PP Forms.
.27
C.6
Random verification.
28
C.7
Certification for EEFC Credits
28
C.8
Consolidation of Air Cargo/ Sea Cargo
28
C.9
Delay in submission of shipping documents by exporters.
29
C.10
Check-list for Scrutiny of Forms
29
C.11
Return of Documents to Exporters.
31
C.12
Handing Over Negot
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C.28
Exporters' Caution List..
44
PART-4
.45
Annex-1
45
Foreign Exchange Management (Current Account Transactions) Rules, 2000
Annex-2…..
.45
52
Notification No. FEMA 23/2000-RB dated 3rd May 2000
Annex-3
Notification No.FEMA 14/2000-RB dated 3rd May 2000
Annex-4
Annex-5…
Annex-6
Annex-7
Appendix
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100
101
102
105
108
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PART-1
A.
(i)
Introduction
Export trade is regulated by the Directorate General of Foreign Trade
(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 issue
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(Guarantees) Regulations, 2000, notified vide Notification No. FEMA 8/2000-RB
dated May 3, 2000, AD Category – I banks have been permitted to issue
guarantees on behalf of exporter clients on account of exports out of India subject
to specified conditions.
(V)
There is no restriction on invoicing of export contracts in Indian Rupees in
terms of the Rules, Regulations, Notifications and Directions framed under the
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Foreign Exchange Management Act 1999. Further, in terms of Para 2.40 of the
Foreign Trade Policy (August 27, 2009 – March 31, 2014), “All export contracts
and invoices shall be denominated either in freely convertible currency or in Indian
Rupees but export proceeds shall be realised in freely convertible currency.
However, export proceeds against specific exports may also be realised in rupees
provided it is through a freely convertible Vostro account of a non-resident bank
s
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ases indicated in Regulation 4 of Notification No. FEMA
23/2000-RB dated May 3, 2000 (Annex 2). The exporters shall, however, be liable
to realise and repatriate export proceeds as 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 ex
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icing bank in India to the
effect that it has received the equivalent amount in foreign exchange, AD
Category I banks may also receive payment for exports made out of India by
debit to the credit card of an importer where the reimbursement from the card
issuing bank/organisation will be received in foreign exchange.
–
(ii) Trade transactions can also be settled in the following manner:
a) All transactions between a person resident in India and a person
resident in Nepal or Bhutan may be settled in Indian Rupees. However,
in case of export of goods to Nepal, where the importer has been
permitted by the Nepal Rashtra Bank to make payment in free foreign
exchange, such payments shall be routed through the ACU mechanism.
b) In Precious metals i.e. Gold / Silver / Platinum by the Gem & Jewellery
units in SEZs and EOUS, equivalent to value of jewellery exported on the
condition that the sale contract provides for the same and the
approximate value of the precious metals is ind
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.
B.3
Realisation and Repatriation of export proceeds
It is obligatory on the part of the exporter to realise and repatriate the full value of
goods or software to India within a stipulated period from the date of export, as
under :
B.4
(i) By Units in Special Economic Zones (SEZs): No specific time period
has been stipulated;
(ii)
(iii)
(iv)
(V)
(i)
By Status Holder Exporters as defined in the Foreign Trade Policy :
Within a period of twelve months from the date of export;
By 100 % Export Oriented Units (EOUS) and units set up under
Electronic Hardware Technology Parks (EHTPs), Software Technology
Parks (STPs) and Biotechnology Parks (BTPs) schemes: Within a
period of twelve months from the date of export on or after September
1, 2004;
Goods exported to a warehouse established outside India: As soon as
it is realised and in any case within fifteen months from the date of
shipment of goods; and
In all other cases: With effect from June 3, 2008, this period of
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anks
concerned.
Reserve Bank may consider applications in Form EFC (Annex 6) from
exporters having good track record for opening a foreign currency
account with banks in India and outside India subject to certain terms
and conditions. Applications for opening the account with a branch of an
AD Category – I bank in India may be submitted through the branch at
which the account is to be maintained. If the account is to be maintained
abroad the application should be made by the exporter giving details of
the bank with which the account will be maintained.
An Indian entity can also open, hold and maintain a foreign currency
account with a bank outside India, in the name of its overseas
office/branch, by making remittance for the purpose of normal business
operations of the said office/branch or representative subject to
conditions stipulated in Regulation 7 of Notification No. FEMA 10/2000-
RB dated May 3, 2000 and as amended from time to time.
A unit located in a Special E
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lery and having an
average annual turnover of Rs. 3 crores or above during the preceding
three licensing years (licensing year is from April to March) are permitted
to transact their business through Diamond Dollar Accounts.
(ii) They may be allowed to open not more than five Diamond Dollar
Accounts with their banks.
(iii) Eligible firms and companies may apply for permission to their AD
Category – I banks in the format prescribed.
B.6
(i)
(ii)
Exchange Earners' Foreign Currency (EEFC) Account
A person resident in India may open with, an AD Category – I bank in
India, an account in foreign currency called the Exchange Earners'
Foreign Currency (EEFC) Account, in terms of Regulation 4 of the
Foreign Exchange Management (Foreign Currency Account by a Person
Resident in India) Regulations, 2000 notified under Notification No.
FEMA 10/2000-RB dated May 3, 2000 as amended from time to time.
All categories of foreign exchange earners are allowed to credit up to
100 per cen
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constituents to extend
trade related loans / advances to overseas importers out of their EEFC
balances without any ceiling subject to compliance of provisions of
Notification No. FEMA 3/2000-RB dated May 3, 2000 as amended from
time to time.
(vi) AD Category – I banks may permit exporters to repay packing credit
advances whether availed in Rupee or in foreign currency from balances
in their EEFC account and / or Rupee resources to the extent exports
have actually taken place.
B.7
Setting up of Offices Abroad and Acquisition of Immovable Property
for Overseas Offices
(i)
(ii)
At the time of setting up of the office, AD Category – I banks may allow
remittances towards initial expenses up to fifteen per cent of the average
annual sales/income or turnover during the last two financial years or up
to twenty-five per cent of the net worth, whichever is higher.
For recurring expenses, remittances up to ten per cent of the average
annual sales/income or turnover during the l
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y should be
promptly reported to the AD Bank.
(iv) AD Category – I banks may also allow remittances by a company
incorporated in India having overseas offices, within the above limits for
initial and recurring expenses, to acquire immovable property outside
India for its business and for residential purpose of its staff.
(v) The overseas office / branch of software exporter company/firm may
repatriate to India 100 per cent of the contract value of each ‘off-site'
contract.
(vi) In case of companies taking up ‘on site' contracts, they should repatriate
the profits of such ‘on site' contracts after the completion of the said
contracts.
(vii) An audited yearly statement showing receipts under 'off-site' and 'on-
site' contracts undertaken by the overseas office, expenses and
repatriation thereon may be sent to the AD Category – I banks.
B.8
Advance Payments against Exports
(1)
In terms of Regulation 16 of Notification No. FEMA 23/2000-RB dated May
3, 2
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nk.
(2) Where the export agreement provides for shipment of goods extending
beyond the period of one year from the date of receipt of advance payment, the
exporter shall require the prior approval of the Reserve Bank.
(3) AD Category – I banks may allow the purchase of foreign exchange from
the market for refunding advance payment credited to EEFC account only after
utilizing the 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
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ditors.
B.10 GR approval for Export of Goods for re-imports
(i)
(ii)
AD Category – I banks may consider request from exporters for granting
GR approval in cases where goods are being exported for re-import after
repairs / maintenance / testing / calibration, etc., subject to the condition
that the exporter shall produce relative Bill of Entry within one month of re-
import of the exported item from India.
Where the goods being exported for testing are destroyed during testing,
AD Category – I banks may obtain a certificate issued by the testing
agency that the goods have been destroyed during testing, in lieu of Bill of
Entry for import.
B.11 Part Drawings /Undrawn Balances
(i)
In certain lines of export trade, it is the practice to leave a small part of the
invoice value undrawn for payment after adjustment due to differences in
weight, quality, etc., to be ascertained after arrival and inspection,
weighment or analysis of the goods. In such cases, AD Category
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ment Exports
(i) When goods have been exported on consignment basis, the AD Category-I
(ii)
(iii)
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.
The agents/consignees may deduct from sale proceeds of the goods
expenses normally incurred towards receipt, storage and sale of the goods,
such as landing charges, warehouse rent, handling charges, etc. and remit
the net proceeds to the exporter.
The account sales received from the Agent/Consignee should be verified
by the AD Category – I banks. Deductions in Account Sales should be
supported by bills/receipts in original except in c
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be as applicable.
(iv)
All transactions should be routed through the designated branch of
the AD Banks.
(V)
The above permission may be granted to the exporters initially for a
period of one year and renewal may be considered subject to the
applicant satisfying the requirement above.
(vi) AD Category – I banks granting such permission/approvals should
maintain a proper record of the approvals granted.
B.14 Direct dispatch of documents by the exporter
(i)
AD Category – I banks should normally dispatch shipping documents to
their overseas branches/correspondents expeditiously. However, they may
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(ii)
(iii)
dispatch shipping documents direct to the consignees or their agents
resident in the country of final destination of goods in cases where:
a)
b)
c)
Advance payment or an irrevocable letter of credit has been received
for the full value of the export shipment and the underlying sale
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opy of the GR form is submitted to the AD banks for
monitoring purposes, by the exporters within 21 days from the date
of shipment of export.
AD Category – I banks may regularize cases of dispatch of shipping
documents by the exporter direct to the consignee or his agent resident in
the country of the final destination of goods, up to USD 1 million or its
equivalent, per export shipment, subject to the following conditions:
a)
The export proceeds have been realised in full.
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b)
The exporter is a regular customer of AD Category – I bank for a
period of at least six months.
c)
The exporter's account with the AD Category – I bank is fully
compliant with the Reserve Bank's extant KYC / AML guidelines.
d)
The AD Category – I bank is satisfied about the bonafides of the
transaction.
In case of doubt, the AD Category – I bank may consider filing Suspicious
Transaction Report (STR) with FIU_
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ent of India at
STPI / EPZ/FTZ /SEZ for valuation / certification not later than 30 days
from the date of invoice / the date of last invoice raised in a month, as
indicated above. The designated officials may also certify the SOFTEX
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(iv)
Forms of EOUs, which are registered with them.
The invoices raised on overseas clients as at (i) and (ii) above will be
subject to valuation of export declared on SOFTEX form by the designated
official concerned of the Government of India and consequent amendment
made in the invoice value, if necessary.
B.16 Short Shipments and Shut out Shipments
(i)
When part of a shipment covered by a GR form already filed with Customs
is short-shipped, the exporter must give notice of short-shipment to the
Customs in the form and manner prescribed. In case of delay in obtaining
certified short-shipment notice from the Customs, the exporter should give
an undertaking t
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to 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.
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(i)
(ii)
(iii)
(iv)
All imports and exports under the arrangement should be at international
prices in conformity with the Foreign Trade Policy and Foreign Exchange
Management Act, 1999 and the Rules and Regulations made there under.
No interest will be payable on balances standing to the credit of the Escrow
Account but the funds temporarily rendered surplus may be held in a short-
term deposit up to a total period of three months in a year (i.e., in a block of
12 months) and the banks may pay interest at the applicable rate.
No fund based/or non-fund based facilities would be permitted against the
balances in the Escrow Account.
Application for permission for opening an Escrow Account may be made by
the overseas exporter / organisation throug
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that country itself subject to the conditions that:
(i)
(ii)
Processing / manufacturing charges are suitably loaded in the export price
and are borne by the ultimate buyer.
The exporter has made satisfactory arrangements for realisation of full
export proceeds subject to the usual GR procedure.
AD Category – I banks may permit units in DTAs to purchase foreign exchange for
making payment for goods supplied to them by units in SEZs.
B.21 Project Exports and Service Exports
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'. Indian exporters offering deferred payment terms to overseas
buyers and those participating in global tenders for undertaking turnkey/civil
construction contracts abroad are required to obtain the approval of the AD
Category I banks/EXIM Bank/Working Group at post-award stage before
undertaking execution of such cont
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egory I bank(s) EXIM Bank / Working Group and also subject to the
–
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reporting requirement and would be monitored by the AD Category – I bank(s) /
EXIM Bank / Working Group.
(ii)
Inter-Project Transfer of Funds [D 1 (i) & D 3]
AD Category – I bank(s) / EXIM Bank / Working Group may permit exporters to
open, maintain and operate one or more foreign currency account/s in a
currency(ies) 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 / Working Group.
(iii)
Deployment of Temporary Cash Surpluses
Project/Service exporters may deploy their temporary cash surpluses, generated
outside India, in the following instruments / products, subject to monitoring by the
AD Category – I bank(s) / EXIM Bank / Working Group :
(a)
investments in short-term paper abroad inclu
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ion
granted under the Regulations, will require prior permission of the Reserve Bank.
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B.23 Forfaiting
Export-Import Bank of India (EXIM Bank) and AD Category – I banks have been
permitted to undertake forfeiting, for financing of export receivables. Remittance of
commitment fee / service charges, etc., payable by the exporter as approved by
the EXIM Bank / AD Category – I banks concerned may be done 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)
(ii)
In case of exports by barges/country craft/road transport, the form should
be presented by exporter or his
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B.25 Border Trade with Myanmar
This is governed by the Agreement on Border Trade between India and Myanmar.
People living along both sides of the India-Myanmar border are permitted to
exchange certain specified locally produced commodities (Annex 5) under the
barter trade arrangement. They can also trade in freely convertible currency. AD
banks should follow the guidelines stipulated in A.P.(DIR Series) Circular No.17
dated October 16, 2000.
B.26 Repayment of State Credits
Export of goods and services against repayment of state credits granted by
erstwhile USSR will continue to be governed by the extant directions issued by the
Reserve Bank, as amended from time to time.
B.27 Counter -Trade Arrangements with Romania
The Reserve Bank will consider counter trade proposals from Indian exporters
with Romania involving adjustment of value of exports from India against value of
imports made into India in terms of a voluntarily entered arrangement between the
concer
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of as under:
C.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)
(iv)
(V)
Customs will certify the value declared by the exporter on both the copies of
the GR form at the space earmarked and will also record the assessed
value.
They will then return the duplicate copy of the form to the exporter and
retain the original for transmission to the Reserve Bank.
Exporters should submit the duplicate copy of the GR form again to
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(vi)
Customs along with the cargo to be shipped.
After examination
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and date of the Reserve Bank approval and/or
number and date of the relative RBI circular should be recorded at the
appropriate place on the GR form.
Where Duplicate copy of GR form is misplaced or lost, AD Category |
banks may accept another copy of duplicate GR form duly certified by
Customs.
Note: At present, GR Forms [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] can be obtained by the exporters from the Regional
Offices of the Reserve Bank. As part of simplifying the procedures, GR Forms are
now made available on-line on the Reserve Bank's website www.rbi.org.in.
(Link:- Notification FEMA Forms For Printing of GR Form)
Accordingly, the exporters have the option to use the GR Forms available on-line
as well.
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C.4
SDF
The following system may be followed in case of SDF:
(i)
(ii)
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ulated 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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C.5
PP Forms
The manner of disposal of PP forms is the same as that
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r, countersign PP forms covering
parcels addressed direct to the consignees, provided:
a)
An irrevocable letter of credit for the full value of the export has been
opened in favour of the exporter and has been advised through the
AD Category – I banks concerned.
Or
b)
The full value of the shipment has been received in advance by the
exporter through an AD Category – I banks.
Or
c)
The AD Category – I bank is satisfied, on the basis of the standing
and track record of the exporter and the arrangements made for
realization of the export proceeds, that he could do so.
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In such cases, particulars of advance payment/letter of credit / AD Category -1
bank's certification of standing, etc., of the exporter should be furnished on the
form under proper authentication.
(v)
Any alteration in the name and address of consignee on the PP form
should also be authenticated by the AD Category – I bank
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ills (HAWBS) to individual shippers.
AD Category – I banks may negotiate HAWBs only if the relative
letter of credit specifically provides for negotiation of these
documents in lieu of Airway Bills issued by the airline company.
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(b) Consolidation of Sea Cargo
(i)
–
AD Category I banks may accept Forwarder's Cargo Receipts
(FCR) issued by steamship companies or their agents (instead of
'IATA' approved agents), in lieu of bills of lading, for negotiation /
collection of shipping documents, of export transactions backed by
letters of credit, only if the relative letter of credit specifically provides
for negotiation of this document, in lieu of bill of lading.
(ii) Further, relative sale contract with the overseas buyer should also
provide that FCR may be accepted in lieu of bill of lading as a
shipping document.
C.9
Delay in submission of shipping documents by exporters
In cases where exp
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(iv) The documents submitted do not reveal any material inter se discrepancies
(V)
(vi)
in regard to description of goods exported; export
country of destination.
value or
Where the marine insurance is taken by the exporters on buyer's account to
verify, that the actual amount paid is received from the buyer through
invoice and the bill.
To accept the Bill of Lading/Airway Bill issued on 'freight prepaid' basis
where the sale contract is on f.o.b., f.a.s. etc. basis provided the amount of
freight has been included in the invoice and the bill.
(vii) To negotiate the documents, in cases where the documents are being
negotiated by a person other than the exporter who has signed GR/PP/SDF
/SOFTEX Form for the export consignment concerned, after ensuring
compliance with Regulation 12 of Foreign Exchange Management (Export
of Goods and Services) Regulations, 2000.
(viii) To accept the variations in the val
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s drawn at the
time of shipment; but the results of such analysis will become
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c)
available only after the shipment has been made. Sometimes,
contracts may provide for payment of penalty for late shipment of
goods in conformity with trade practice concerning the commodity. In
these cases, while exporters declare to the Customs the full export
value based on the contract price, invoices submitted along with
shipping documents for negotiation/ collection may reflect a different
value arrived at after taking into account the results of analysis of
samples or late shipment penalty, as the case may be.
To accept for negotiation or collection the bills for exports by sea or
air which fall short of the value declared on GR/SDF forms on
account of trade, only if the discount has been declared by the
exporter on relative GR/SDF form at the time of shipment and
accepted by Customs.
C.11 Return of Do
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10
(ii)
(iii)
of payment, the fortnightly period of R Supplementary Return with which
the ENC statement covering the transaction was sent to the Reserve Bank,
should be available.
AD Category – I banks should ensure that all types of export transactions
are entered in the Export Bills Register and are given bill numbers on a
financial year basis (i.e. April to March).
The bill numbers should be recorded in ENC statement and other relevant
returns submitted to the Reserve Bank.
C.14 Follow-up of Overdue Bills
(i)
(ii)
(iii)
(iv)
(V)
–
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 concern
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concerned of
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the Reserve Bank, on a half-yearly basis, a consolidated statement in Form
XOS (Annex 7) giving details of all export bills outstanding beyond six
months from the date of export as at the end of June and December every
year. The statement should be submitted in triplicate within fifteen days
from the close of the relative half-year.
C.15 Reduction in Invoice Value on Account of Prepayment of Usance Bills
Occasionally, exporters may approach AD Category – I banks for reduction in
invoice value on account of cash discount to overseas buyers for prepayment of
the usance bills. AD Category – I banks may allow cash discount to the extent of
amount of proportionate interest on the unexpired period of usance, calculated at
the rate of interest stipulated in the export contract or at the prime rate/LIBOR of
the currency of invoice where rate of interest is not stipulated in the contract
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cent of the average annual export realization during the preceding
three financial years.
For the purpose of reckoning the percentage of export bills outstanding to
the average export realizations during the preceding three 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
(i)
(ii)
AD Category – I banks may remit export claims on application, provided the
relative export proceeds have already been realised and repatriated to
India and the exporter is not on the caution list of the Reserve Bank.
In all such cases of remittances, the exporter should be advised to
surrender proportionate export incentive, if any, received by him.
C.18 Change of buyer/consignee
Prior approval of the Reserve Bank is not required if, after goods have been
shipped, they are to be transferred to a buyer other than the original buyer in the
event
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vestigation by Directorate of
Enforcement / Central Bureau of Investigation or any other
Investigating Agencies.
Exporters dealing with more than one AD Category – I banks can avail of
this facility through each AD Category – I bank, i.e., the limit of 10 per cent
for self write-off (including reduction in invoice value) and extension of time
for realization of export proceeds would be applicable for export bills lodged
for realization with that AD Category – I banks.
Exporters operating under a consortium of banks or with multiple banks will
also have the option of computing the 10 per cent limit on an aggregate
basis with all the banks, provided the lead bank of the consortium or in
case of multiple banking, a nodal bank, undertakes to verify the exporters'
annual performance on behalf of all the banks.
(iv) Within a month from the close of the financial year, exporters should submit
a statement (Annex 4), giving details of export proceeds due, realised and
not realise
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AD Category – I banks may promptly advise the exporter concerned to
seek extension of time/reduction in invoice value/write-off in respect of non-
realization in excess of the 10 per cent limit, failing which, the AD Category
– I banks may inform the exporter about the withdrawal of this facility of self
write-off / extension of time, within a month, under advice to the Regional
Office concerned of the Reserve Bank.
C.20 Extension of Time
(i)
The Reserve Bank of India has permitted the AD Category – I banks to
extend the period of realization of export proceeds beyond 12 months from
the date of export, up to a period of six months, at a time, irrespective of the
invoice value of the export subject to the following conditions:
a)
b)
The export transactions covered by the invoices are not under
investigation by Directorate of Enforcement / Central Bureau of
Investigation or other investigatin
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(ii)
In cases where an exporter has not been able to realise proceeds of a
shipment made within the extended period for reasons beyond his control,
but expects to be able to realise proceeds if further extension of the period
is allowed to him, as well as in respect of cases not covered under Para (i)
above necessary application (in duplicate) should be made to the Regional
Office concerned of the Reserve Bank in form ETX through his AD
Category – I bank with appropriate documentary evidence.
–
C.21 Write off by AD Category – I banks
(i)
An exporter who has not been able to realise the outstanding export dues
despite best efforts, may approach the AD Category – I banks, who had
handled the relevant shipping documents, with appropriate supporting
documentary evidence with a request for write off of the unrealised portion.
AD Category – I banks may accede to such requests subject to the under
noted conditions:
a.
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ng country.
iv. The unrealised amount represents the balance due in a case
settled through the intervention of the Indian Embassy, Foreign
Chamber of Commerce or similar Organisation.
v. The unrealised amount represents the undrawn balance of an
export bill (not exceeding 10 per cent of the invoice value)
remained outstanding and turned out to be un realizable despite
all efforts made by the exporter.
vi. The cost of resorting to legal action would be disproportionate to
the unrealised amount of the export bill or where the exporter
even after winning the Court case against the overseas buyer
could not execute the Court decree due to reasons beyond his
control.
vii. Bills were drawn for the difference between the letter of credit
value and actual export value or between the provisional and
the actual freight charges but the amount have remained
unrealised consequent on dishonour of the bills by the overseas
buyer and there are no prospects of realization.
The case is
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olicy, and
manufacturer exporters exporting more than 50 per cent of their production,
and recognized as such by DGFT, may be permitted to “write off”
outstanding export dues to the extent of 5 per cent of their average annual
realization during the preceding three financial years or 10 per cent of the
export proceeds due during the financial year, whichever is higher. This
limit will be cumulatively available in a financial year and subject to the
following conditions:
–
a. The exporter should submit to the AD Category I banks
concerned, a Chartered Accountant's certificate indicating —
–
(i)
the export realization in the preceding three financial years and also
the amount of “write off ” already availed of during the year, if any,
(ii)
the relevant GR/SDF/PP Nos. to be written off, Bill No., invoice
value, commodity exported, country of export,
(iii)
the export benefits, if any, availed of by the exporter have been
surrendered.
b.
The following do not qua
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e
Regional Office of the Reserve Bank under whose jurisdiction they are
functioning, indicating details of write offs etc., every half year ended 30th
June and 31st December within 15 days from the date of completion of the
relevant half year.
AD Category – I banks are to put in place a system under which their
internal inspectors or auditors carryout random sample check/per cent
check of outstanding export bills written off.
C.22 Write off in cases of Payment of Claims by ECGC and private
insurance companies regulated by Insurance Regulatory and Development
Authority (IRDA)
(i) AD Category – I banks shall, on an application received from the exporter
supported by documentary evidence from the ECGC and private insurance
companies regulated by IRDA confirming that the claim in respect of the
outstanding bills has been settled by them, write off the relative export bills
and delete them from the XOS statement.
(ii) Such write-off will not be restricted to the limit of 10
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um of his 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.25 'Netting off' of export receivables against import payments – Units in
Special Economic Zones (SEZs)
AD Category – I banks may allow requests received from exporters for 'netting off'
of export receivables against import payments for units located in Special
Economic Zones subject to the following:
(i) The 'netting off' of export receivables against import payments is in respect of
the same Indian entity and the overseas buyer / supplier (bilateral netting)
and the netting may be done as on the date
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ication submitted by
the exporter. The remittance on agency commission may be allowed
subject to the following conditions:
a)
b)
Amount of commission has been declared on GR/SDF/PP/SOFTEX
form and accepted by the Customs authorities or Ministry of
Information Technology, Government of India / EPZ authorities as
the case may be. In cases where the commission has not been
declared on GR/SDF/PP/SOFTEX form, remittance may be allowed
after satisfying the reasons adduced by the exporter for not
declaring commission on Export Declaration Form, provided a valid
agreement/written understanding between the exporters and/or
beneficiary for payment of commission exists.
The relative shipment has already been made.
(ii)
AD Category
–
I banks may allow payment of commission by Indian
exporters, in respect of their exports covered under counter trade
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arrangement through Escrow Accounts designated
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d of the exporter
ii.
verify the bonafides of the transactions
iii.
iv.
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 availed, if any, for the relevant export
have been surrendered
obtain an undertaking from the exporter that the goods will be re-imported
within three months from the date of remittance and
V. ensure that all procedures as applicable to normal imports are adhered to.
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C.28 Exporters' Caution List
(i)
(ii)
(iii)
AD Category – I banks will also be advised whenever exporters are
cautioned in terms of provisions contained in Regulation 17 of “Export
Regulations” (Annex 2). They may approve GR/SDF/PP forms of exporters
who have been placed on caution list if the exporters concerned produce
evidence of having received an advance payment
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dered it necessary in the public interest, makes the following rules,
namely :
1. Short title and commencement.(1) These rules may be called the Foreign
Exchange Management (Current Account Transactions) Rules, 2000;
(2) They shall come into effect on the 1st day of June 2000.
2. Definitions. In these rules, unless the context otherwise requires :
(a)
1999);
“Act” means the Foreign Exchange Management Act, 1999 (42 of
(b) “Drawal” means drawal of foreign exchange from an ealizatio
person and includes opening of Letter of Credit or use of International Credit
Card or International Debit Card or ATM Card or any other thing by whatever
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 ExchangeDrawal of foreig
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shall not apply where the payment is made out of funds
held in Resident Foreign Currency (RFC) Account of the remitter.
6. (1) Nothing contained in Rule 4 or Rule 5 shall apply to drawal made out of
funds held in Exchange Earners' Foreign Currency (EEFC) account of the
remitter.
(2) Notwithstanding anything contained in sub-rule (1), restrictions imposed under
rule 4 or rule 5 shall continue to apply where the drawal of foreign exchange from
the Exchange Earners Foreign Currency (EEFC) Account is for the purpose
specified in items 10 and 11 of Schedule II, or item 3, 4, 11, 16 & 17 of Schedule
Ill as the case may be.
7. Use of International Credit Card while outside India
Nothing contained in Rule 5 shall apply to the use of International Credit Card for
making payment by a person towards meeting expenses while such person is on
a visit outside India.
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Schedule I
Transactions which are Proh
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(see Rule 4)
2. Advertisement in foreign print
media for the 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 / Department of Govt. of
India whose approval is required
Ministry of Human Resources
Development, (Department of
Education and Culture)
Ministry of Finance, (Department of
Economic Affairs)
3. Remittance of freight of vessel Ministry of Surface Transport,
chartered by a PSU
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)
5. Multi-modal transport operators
making remittance to their agents
abroad
6. Remittance of hiring charges of
transponders by
(a) TV Channels
(b) Internet Service providers
7. Remittance of container detention
charges exceeding the rate
prescribed by Director General of
Shipping
8. omitted
(Chartering Wing)
Ministry
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d Bhutan).
3. Gift remittance exceeding USD 5,000 per remitter/donor per annum. @
4. Donation exceeding USD 5000 per remitter/donor per annum. #
5. Exchange facilities exceeding USD 100,000 for persons going abroad for
employment.
6. Exchange facilities for emigration exceeding USD 100,000 or amount
prescribed by country of emigration.
7. Remittance for maintenance of close relatives abroad, @@
i. exceeding net salary (after deduction of taxes, contribution to provident fund and
other deductions) of a person who is resident but not permanently resident in India
and –
(a) is a citizen of a foreign State other than Pakistan; or
(b) is a citizen of India, who is on deputation to the office or branch or subsidiary
or joint venture in India of such foreign company.
ii. exceeding USD 100,000 per year, per recipient, in all other cases.
Explanation: For the purpose of this item, a person resident in India on account
of his employment or deputation of a specified duration (irre
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ial plots in India exceeding USD 25,000 or 5% of the inward remittance
whichever is more.
12. Omitted
13. Omitted
14. Omitted
15. Remittance exceeding USD 1,000,000 per project, for any consultancy service
procured from outside India.
16. Omitted
17.* Remittance exceeding USD 100,000 by an entity in India by way of
reimbursement of pre-incorporation expenses.
18. Omitted
(Amendments)
Notification GSR.663 (E) dated August 17, 2000,
S.O.301(E) dated March 30, 2001,
GSR.442(E) dated November 2, 2002,
GSR.831(E) dated December 20, 2002,
GSR.33(E) dated January 16, 2003,
GSR.397(E) dated May 14, 2003,
GSR.731(E) dated September 11, 2003,
GSR.849(E) dated October 29, 2003,
GSR.608(E) dated September 13, 2004,
G.S.R.512(E) dated July 28,2005,
G.S.R.412(E) dated July 11, 2006,
G.S.R.511(E) dated July 28, 2006, and
G.S.R.382 (E) dated May 05, 2010.
Please Note:
@ Stands amended vide A.P. (DIR Series) Circular No. 24 dated December 20,
2006.
# Stands amended vide A.P.
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2000.
2. Definitions :-
In these Regulations, unless the context requires otherwise, –
(i) 'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999) ;
(ii) 'Authorized dealer' means a person Authorized as an Authorized Dealer
under sub-section (1) of section 10 of the Act, and includes a person carrying on
business as a factor and Authorized as such under the said section 10 ;
(iii) 'EXIM Bank' means the Export-Import 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
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regards export of goods and services :-
(1) Every exporter of goods or software in physical form or through any other form,
either directly or indirectly, to any place outside India, other than Nepal and
Bhutan, shall furnish to the specified authority, a declaration in one of the forms
set out in the Schedule and supported by such evidence as may be specified,
containing true and correct material particulars including the amount representing-
(i) the full export value of the goods or software; or
(ii) if the full export value is not ascertainable at the time of export, the value
which the exporter, having regard to the prevailing market conditions expects to
receive on the sale of the goods or the software in overseas market, and affirms in
the said declaration that the full export value of goods (whether ascertainable at
the time of export or not) or the software has been or will within the specified
period be, paid in the specified manner.
(2) Declarations shall be exe
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argo and goods supplied under 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
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India for testing subject to re-import into India;
1) defective goods sent outside India for repair and re-import provided the goods
are accompanied by a certificate from an Authorised Dealer in India that the
export is for repair and re-import and that the export does not involve any
transaction in foreign exchange;
m) exports permitted by the Reserve Bank, on application made to it, subject to
the terms and conditions, if any, as stipulated in the permission.
5. Indication of importer-exporter code number :-
The importer-exporter code number allotted by the Director General of Foreign
Trade under Section 7 of the Foreign Trade (Development & Regulation) Act,
1992 (22 of 1992) shall be indicated on all copies of the declaration forms
submitted by the exporter to the specified authority and in all correspondence of
the exporter with the Authorised Dealer or the Reserve Bank, as the case may
be.
6. Authority to whom declaration is to be furnished and the manner of
dealing
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eserve 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.
(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 of the export proceeds, the duplicate copies of export
declaration forms viz. GR, PP and Softex and Exchange Control Copies of
the shipping bills together with related Statutor
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Explanation:
For the purpose of this regulation, 'final place of destination' means a place in a
country in which the goods are ultimately imported and cleared through Customs
of that country.
8. Manner of payment of export value of goods :-
Unless otherwise Authorised by the Reserve Bank, the amount representing the
full export value of the goods exported shall be paid through an Authorised
Dealer in the manner specified in the Foreign Exchange Management (Manner of
Receipt and Payment) Regulations, 2000.
Explanation:
For the purpose of this regulation, re-import into India, within the period specified
for realization of the export value, of the exported goods in respect of which a
declaration was made under Regulation 3, shall be deemed to be realization of full
export value of such goods.
9. Period within which export value of goods/software to be realised :-
d.
The amount representing the
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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
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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 period of twelve months
(b) The Reserve Bank may for reasonable and sufficient cause direct that the
said exporters shall cease to be governed by sub-regulation (2):
Provided that no such direction shall be given unless the unit has been given a
reasonable opportunity to make a representation in the matter;
I On such direction, the said exporters shall be governed by the provisions of
sub-regulation (1), until directed otherwise by the Reserve Bank.
Explanation:
For the purpose of this r
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ified period of 21 days, for reasons beyond
the control of the exporter.
12. Transfer of documents :-
Without prejudice to Regulation 3, an Authorised Dealer may accept, for
negotiation or collection, shipping documents including invoice and bill of
exchange covering exports, from his constituent (not being a person who has
signed the declaration in terms of Regulation 3) :
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Provided that before accepting such documents for negotiation or collection, the
Authorised Dealer shall –
a) Where the value declared in the declaration does not differ from the value
shown in the documents being negotiated or sent for collection, or
b) Where the value declared in the declaration is less than the value shown in
the documents being negotiated or sent for collection,
require the constituent concerned also to sign such declaration and thereupon
such constituent shall be bound to comply with such requisitio
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oods or software subject to such deductions, if any, as
may be allowed by the Reserve Bank or, subject to the directions of the Reserve
Bank, by an Authorised dealer;
Provided that no proceedings in respect of contravention of these provisions
shall be instituted unless the specified period has expired and payment for the
goods or software representing the full export value, or the value after deductions
allowed under clause (iii), has not been made in the specified manner within the
specified period.
14. Certain Exports requiring prior approval :-
A. Export of goods on lease, hire, etc.
No person shall, except with the prior permission of the Reserve Bank, take or
send out by land, sea or air any goods from India to any place outside India on
lease or hire or under any arrangement or in any other manner other than sale or
disposal of such goods.
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B. Exports under trade agreement/rupee credi
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eclared
on the specified form, the specified period has expired and the payment therefor
has not been made as aforesaid, the Reserve Bank may give to any person who
has sold the goods or software or who is entitled to sell the goods or software or
procure the sale thereof, such directions as appear to it to be expedient, for the
purpose of securing, (a) the payment therefore if the goods or software has been
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
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the period
of one year from the date of receipt of advance payment, the exporter shall
require the prior approval of the Reserve Bank.
17. Issue of directions by Reserve Bank in certain cases :-
(1) Without prejudice to the provisions of Regulation 3 in relation to the export of
goods or software which is required to be declared, the Reserve Bank may, for the
purpose of ensuring that the full export value of the goods or, as the case may be,
the value which the exporter having regard to the prevailing market conditions
expects to receive on the sale of goods or software in the overseas market, is
received in proper time and without delay, by general or special order, direct from
time to time that in respect of export of goods or software to any destination or any
class of export transactions or any class of goods or software or class of
exporters, the exporter shall, prior to the export, comply with the conditions as
may be specified in the order, namely;
a) that the paym
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pportunity to make a representation in the matter.
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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
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Form GR:
Form SDF:
Form PP:
Schedule
(Refer to Regulation 3)
To be completed in duplicate for export otherwise than by Post including
export of software in
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, 2004
G.S.R..279(E)/April 23,2004
Amended vide Notification No. FEMA 116/2004-RB dated March 25, 2004
G.S.R..352(E)/June 8,2004
Amended vide Notification No FEMA 176/2008-RB dated July 23,2008
G.S.R..576(E)/August 5,2008
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Forms: -GR, SDF, PP and SOFTEX
EXCHANGE CONTROL DECLARATION (GR) FORM NO.
ORIGINAL
Exporter
Invoice
Date
No. & SB No. & Date
AR4/AR4A No. &
Date
Q/Cert. No. &
Importer-Exporter Code No.
Date
Consignee
Export
Control
Trade
Custom House
Agent
L/C. No.
Pre-Carriage
by
Place
Receipt
of
by
Pre-Carrier
Vessel/Flight Rotation No.
No.
If export under:
Deferred Credit
Joint Venture
Rupee Credit
Others
RBI's Approval/Cir. No. & Date
Type of shipment:
Outright Sale
Consignment
Export
Others (Specify)
Port
Loading
of
Nature
of
/C&F
/FOB
contract CIF
Other
(Specify)
Port of Discharge
Country
of
Destination
Exchange Rate u/s 14 of CA
Currenc
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n under Foreign Exchange Management Act, 1999: I/We hereby declare that â˜â˜
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)
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t CIF
Other
(Specify)
Country
Destination
of
Exchange Rate u/s 14 of CA
Currency of invoice
S.
Marks & Container No. & Kind of
No.
No.
Nos.
Pkgs.
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Statistical Code & Quantity Value FOB
Description of
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Goods
Net Weight
Gross
Weight
Total FOB value (in
words)
Analysis of Export Currency Amount
value
Full export value or where not
ascertainable, the value which exporter
expects to receive on the sale of
goods.
FOB Value
Freight
Insurance
Commission
Rate
Discount
Currency
Amount
Other Deductions
EXCHANGE CONTROL DECLARATION (GR) FORM NO.
Is Export under L/C
arrangements?
Ye
No
S
If yes, name of advising bank in India
Bank through which payment is to be received
For customs
Customs Assessable value Rs.
(Rupees)
Export value Verified
Customs
Appraiser
Cargo shipped in
full/part
Quantity
Value
Whether payment is to be received through
the ACU Yes/No
Date
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ndia.
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 not applicable
FOR AUTHORISED DEALER'S USE
Uniform Code
Number
*Indicate ( ) in the box applicable
Date of *(i)
(ii) receipt for
negotiation
collection,
Bill
No
Type of Bill* (i)
(ii)
(iii)
Others
DA
DP
(Specify)
Type of shipment: *(i) Firm
Sale Contract
(ii) Consignment
Basis
(iii)
Others
(Specify)
The GR Form was included in the statement sent to the Reserve Bank with the R Return
for the fortnight ending_
sent on
We certify and confirm that we have received the total amount of
(amount) as under being the proceeds of exports declared on this form.
(Currency)
Date Currency
of
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tracted with the buyer is the same as the full export value declared in the
above shipping bill (b) *the full export value of the goods is not ascertainable at
the time of export and that the value declared is that which I/We, having regard to
the prevailing market conditions, expect to receive on the sale of goods in the
overseas market.
I/We undertake that I/We will deliver to the bank named herein
The
foreign exchange representing the full export value of the goods on or before @
in the manner specified in the Regulations made under the Foreign Exchange
Management Act, 1999. I/We further declare that I/We am/are resident in India
and I/We have a place of business in India.
I/We* am/are OR am/are not in Caution List of the Reserve Bank of India.
Date:
(Signature
Exporter)
of
@ 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 da
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3)
In the
name of**
(4)
Held
Held
with us
with**
(5)
(6)
**(Write the name of the concerned Indian Authorised Dealer Branch)
Any other manner of receipt (Specify)
RBI
(7)
(Stamp & Signature of Authorised dealer)
Date :
Address
SPACE FOR USE BY RESERVE BANK OF INDIA
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FORM PP*
EXCHANGE CONTROL
Exporter's Declaration
ORIGINAL
4.
Buyer's/Consignee's
Form Number:
(Please see 'Notes to Exporters')
1. (a)
(b)
2.
3.
234
Name of the Post Office
Number and date of Parcel Receipt
Exporter's Name
Importer/Exporter Code No.
(for RBI use)
Name and
address:
56
5.
Country of destination
6.
Nature of contract* (i) CIF/(ii)
C&F/(iii)FOB/
(iv) Others (Specify): _…..
7.
Date of despatch.
8.
Type of
Shipment* (1) Outright
Sale/(ii)
Consignment
export/(iii)
Others
(Specify) ……
Description of goods :
Quantity of goods: Unit€ …..Quantity
9.
10.
11.
Sq.
Cu
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roval
15. If the export is made under L/C
arrangements, name of advising bank in
India
16. State if the payment is to be received
through the Asian Clearing Union: *Yes/No
17. Name & address of bank through whom
payment is to be received
I/We hereby declare that I/we am/are the *SELLER/CONSIGNOR of the goods in
respect of which the declaration is made and that the 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.
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st Office through which the goods have been dispatched will
forward the Original to the nearest office of Reserve Bank of India.
All documents relating to export of goods from India must be passed
through the medium of an Authorised Dealer in foreign exchange in India
within 21 days of the date of shipment of the goods.
The amount representing the full export value of goods must be
realised on the due date for payment or within six months from the
date of shipment, whichever is earlier.
Note Government of India/Indian Financial institutions may conclude from
time to time Special Trade Agreements with other countries providing for
settlement of certain payments from the countries in a specified manner
or for exports to be financed from Government to Government Credits.
Reserve Bank will advise Authorised Dealers of such arrangements by
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issue of circulars. Methods of payment specified in the i
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ue
@
value
is
not Particulars
expected on sale of
goods in
the
oversease market
may be shown
@Full Export value
Currency
No application for F.O.B. Value
Amount
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permission
for Freight
remittance/deduction
From the declared
value on account of
agency
Commission and/or
discount will be
Entertained by the
Reserve Bank or
Authorised Dealer
unless these have
been declared on
this form
Insurance
Discount (Rate. ….)
Agency Commission
(Rate_
(For
Customs 13. Customs Assessable Value
Use)
Export Value (Rupees)
verified
(Customs
Appraiser)
14. If the export is made under general
permission of the Reserve Bank of India,
Number and date of its approval
15. If the export is made under L/C
arrangements, name of advising bank in
India
16. State if the payment is to be received
through the Asian Clearing Union: *Yes/No
17. Name & address of bank through whom
payment is to
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erve 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)
Stamp
&
Signature
of
Authorised
dealer
Date:
Bank's
Uniform
Code No.
(Signature of Exporter)
Date:
Address:
Note: All documents relating to export of goods from India must be passed
through the medium of an Authorised Dealer in foreign exchange in
India within 21 days of the date of shipment of the goods.
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FOR AUTHORISED DEALER'S USE
Uniform Code Number :
Date of *(i) negotiation/(ii) receipt for collection
* Strike out whichever is not
applicable
Bill No.
Type of Bill *DA/(ii)DP/ (iii) Others
Type of shipment: *(i) Firm Sale Contract/
(ii) Consignment Basis/ (iii) Others
(Specify)
The PP Form was included in the
Statement sent to the Reserve Bank with
t
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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
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proceeds actually realised should also be forwarded along with this copy of
the Form.
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 Authorised Dealers by or under the
Exchange Control Manual or the Authorised Dealer's Circular or Circulars,
as the case may be, or the Reserve Bank of India's approval number and
date for reduction.
4. Space for use by Reserve Bank of India
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EXCHANGE CONTROL
SOFTWARE EXPORT DECLARATION (SOFTEX) FO
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obs and Conversion
906
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Software Data Processing
Software Development
Software Product, Packages
Others (Please specify)
9 07
908
10.
(b)
Other Software
Video/TV Software
Others (Please specify)
Analysis of Export Value
Amount
(a)
Full export value
of which :-
i) Net value of exports without
ii)
transmission charges
Transmission charges
included in invoice
Transmission charges (if payable
(b)
separately by the overseas client)
(c)
Deduct: Agency commission,
at the rate of .%
(d)
Any other deductions as
permitted by RBI (please specify)
(e)
Amount to be realised [(a+b) — (c+d)]
909
910
9/11
Currency
11. How export value will be realised
(mode of realization) (Please mark
on the appropriate box)
☠(a) Under L/C
(b) Bank Guarantee
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(a) Name and address of
83
Authorised Dealer
(b) Authorised Dealer Code No.
(a) Name and ad
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D. Code No.
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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 from the buyer represents the export value
contracted and declared above. I/we also declare that the software has been
developed and exported by using Authorised and legitimate datacom links.
I/We undertake that I/we will deliver to the bank named above the foreign
exchange representing the full value of the software exported as above on or
before
(i.e. within six months from the date of invoice/date of last
invoice raised during a month), in the manner specified in the Regulations made
under the Foreign Exchange Management Act, 1999.
Place:
Date:
Name :
Signature of the Exporter
Designation
Enclosure:
(1)
Copy of Export Contract [7(a)]
(2)
Copy o
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/EPZ/SEZ/100% EOU/DTA
unit
5.
Buyer's name and address including
country and their relationship
with exporting unit (if any)
6.
Date and Number of Invoice
7.
a)
Whether export contract/
purchase order already
registered with STPI.
Yes
No
(If 'No', please attach copy
of the contract/purchase
order)
b. Does contract stipulate
payment of royalty
Yes
SECTION-A
(For exports through data communication link)
8.
Name of Authorised datacom
STPI/VSNL/DOT/Internet/Others
service provider
9.
Type of software exported
(Please mark on the appropriate box
on the left side).
No
(Please specify)
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(a) Computer Software
Data Entry jobs and Conversion
RBI Code
906
Software Data Processing
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
Amount
10.
= = = = = = = =
Plain text (Extract) only
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receipt of Royalty on Software Packages/Products exported)
Details of Software Package(s)/ Product(s) exported
12.
(a)
Date of export
(b)
GR/SDF/PP/SOFTEX Form No. on
which exports were declared
(c)
Royalty agreement details
%age and amount of royalty
13.
14.
Period of royalty agreement
(Enclose copy of Royalty
agreement, if not already
registered)
How royalty value will be realised
(as defined in Royalty agreement)
Calculation of royalty amount
(Enclose copy of communication
from the foreign customer)
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15.
16.
Name and address of designated
Authorised Dealer in India through
whom payment has been received/
to be received
Declaration by exporter
A.D. Code No.
SECTION-C
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 from the buyer rep
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n order and
accepted by us.
Place:
Date:
Name:
Designation:
(Signature of Designated Official of STPI/FTZ/EPZ/SEZ
on behalf of Ministry of Information Technology)
Stamp
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AD's Uniform Code No
For Authorised Dealer's use only
Certificate by Authorised Dealer
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 Currency
Receipt
Credit to Nostro Debit to Non-Resident
Account in
Period of R-
Rupee Account of a Return
(Country)
Bank in
which
with
the
(country)
realization has
been reported to
RBI
In our
name
In
the
Held with Held with
name
of **
**
us
1
2
3
4
5
6
7
(** Write the name of the concerned branch
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ent of royalty
Yes
No
Yes
SECTION-A
(For exports through data communication link)
8.
Name of Authorised datacom service provider
TPI/VSNL/DOT/Internet/Others
No
(Please specify)
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9.
Type of software exported (Please mark
on the appropriate box on the left side).
(a) Computer Software
Data Entry jobs and Conversion
RBI Code
906
Software Data Processing
Software Development
907
Software Product, Packages
908
Others (Please specify)
909
(b)
Other Software
910
Video/TV Software
Others (Please specify)
Analysis of Export Value
Amount
10.
(a)
Full export value
of which :-
i)
Net value of exports without
ii)
transmission charges
Transmission charges
included in invoice
Transmission charges (if payable
(b)
separately by the overseas client)
(c)
Deduct: Agency commission,
at the rate of
%
(d)
Any other deductions as
permitted by RBI (please specify)
(e)
Amount t
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eady 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.
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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 from the buyer represents the export value
contracted and declared above. I/we also declare that the software has been
developed and exported by using Authorised and legitimate datacom links.
I/We undertake that I/we will deliver to the bank named above the foreign
exchange representing the full value of the software exported as above on or
before
(i.e
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nferred by Section 47 of the Foreign Exchange
Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the
following regulations in respect of the manner of receipt and payment in foreign
exchange, namely:
1. Short title and commencement:-
i) These Regulations may be called the Foreign Exchange Management
(Manner of Receipt and Payment) Regulations, 2000.
ii) They shall come into effect on 1st day of June, 2000.
2. Definitions:-
In these Regulations, unless the context requires otherwise, –
(i) 'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999);
(ii) 'authorised dealer' means a person authorised as an authorised dealer
under subsection (1) of Section 10 of the Act;
(iii) 'authorised bank' means a bank, other than an authorised dealer,
authorised by the Reserve Bank to accept deposits from persons
resident
outside India;
(iv) 'FCNR/NRE account' means an FCNR or NRE account opened and
maintained in accordance with the Foreign Exchange Managemen
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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 the correspondent bank in the member
country; and
b) payment in any permitted currency in all other cases
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
b) payment in any permitted currency.
“(1 A) In respect of exports from India to Myanmar, payment may be
received
(2)
in any freely convertible currency or through ACU Mechanism from
Myanmarâž
In respect of an export from India, payment shall be received in a
currency appropriate to the place of final destination as mentioned in
the declaration form irrespective of the country of residence of the
buyer.
4. Payment for export in certain cases:-
Notwithstandi
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authorised dealers, where the export is covered by the arrangement
between the Central Government and the Government of a foreign country
or by the credit arrangement entered into by the EXIM Bank with a financial
institution in a foreign state;
vi) in the form of precious metals i.e. gold/silver/platinum equivalent to
value of jewellery exported by Gems and Jewellery units in Special
Economic Zones and Export Oriented Units on the condition that the sale
contract provides for the same and the value is declared in the relevant
GR/SDF/PP forms.
5) Manner of payment in foreign exchange:-
(1) A payment in foreign exchange by an authorised dealer, whether by way of
remittance from India or by way of reimbursement to his branch or
correspondent outside India (other than Nepal and Bhutan) against
payment for import into India, or against any other payment, shall be as
mentioned below:
Group
Manner of payment
(1) member countries in a) payment for all eligible current transa
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dia,
a) where the goods are shipped from a member country of Asian Clearing
Union (other than Nepal) but the supplier is resident of a country other than
a member country of Asian Clearing Union, payment may be made in a
manner specified for countries in Group (2) of Regulation 5 ;
b) in all other cases, payment shall be made in a currency appropriate to
the country of shipment of goods.
6. Manner of Payment in certain cases:-
Notwithstanding anything contained in Regulation 5-
(1) where an import is covered by the special arrangement between the
Central Government and the Government of a foreign state, the payment
for import shall be made in accordance with the directions issued by the
Reserve Bank to authorised dealer ;
(2) subject to the provisions of sub-regulation (1), a person resident in India
may make payment in foreign exchange through an international card
held by him :
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Provided
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xport Bills not
Realised (partly or fully)
within the prescsribed period
GR/SOFTEX/
SDF/PP No.
(1)
Amount
Total Export Proceeds
realized within the
prescribed period of 180
days or higher period as
applicable
No. of GR/
SOFTEX/SDF
/ PP forms
Fully Realised
Partly Realised
(PART B)
(Amount in Rs 000s)
Export proceeds not
realized within the
Prescribed Period of 180
days or higher period as
applicable
No. of GR/
SOFTEX/
Amount
SDF/PP
forms
Details of Extension /
Reduction in invoice
value/Write off by the
Exporter himself
Amount
Amount
(Amount in Rs 000s)
Extension/ Reduction in
invoice value / Write off
sought from AD
Revised
due date
Amount
Revised
due date
@
@
(2)
Total
NOTE: 1) The exporter should approach AD/RBI 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
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.
Ginger
Annex-5
23. Any other commodities as may be mutually agreed upon between the
two sides
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(para B 4, Part-1 of the Master Circular)
EFC
(Application for opening foreign currency account with
a bank in India or abroad by exporters)
Annex-6
Instructions:
1.
The application should be completed in duplicate and submitted through the
designated branch of a bank authorized to deal in foreign exchange in India with
which the foreign currency account is to be maintained/which will monitor the
account, to the Office of Reserve Bank under whose jurisdiction the exporter is
located.
2. Before forwarding the application to Reserve Bank, authorised dealers should
properly scrutinize it to ensure that it is complete in all respects.
Documentation:
3.
4.
5.
6.
Exporter's declaration duly certified by his auditors, indicating export bills realized
during the preceding 3 years and the exp
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end of
the period.
Financial Total Amount Outstanding
Year exports realised at
(Rs.) the end of the
made
(Rs.)
period
(Rs.)
6.
7.
8.
9.
10.
11.
Details of imports made Calendar Year Financial Year Country Amount (Rs.)
Country Amount (Rs.) during the
preceding 3 years, country-wise.
In case the account is proposed to be
opened with a bank abroad, indicate
the details of arrangements made for
availing of loans/ overdrafts/lines of
credit from the bank with which the
account will be maintained.
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.
Whether the applicant's name has
been/was placed on exporters' caution
list at any time.
Details of foreign currency loan raised
by the exporter and their maturity
patterns.
Any other information that the applicant
may like to provide in support of this
application.
Place:
D
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ue GR/P
of date P/
Code export of SOFT
Port of
Ship-
Ship-
ping
Name
& add-
ment
bill No.
ess
No./
real- EX
and
ress
of the
of
IE
isa- form
date
over-
export Code
tion No.
seas
-ter
No.
buyer
1. 2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Curr-
Invoice Amount Amount
value Realised Outstand-
ing
Curr- Currency
ency
ency
and
and
and
Amount
Amount Amount
Rupee equivalent of outstanding amount
(To be classified as)
Remarks
Cash
exports
Exports on
Consign-
Undrawn
balances
ment
basis
12.
13.
14.
15.
16.
17.
18.
Total
105
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Part II – Exports on deferred payment terms where installments (including
interest) are outstanding beyond due date
Sr.
Name Expor No. &
Date
GR
Port
Ship-
Name Comm-
Invoice
No.
&
-ter's
date
of
Form
of
ping
&
modity
value
Add- Code
of RBI
export No.
Ship-
bill
add-
Curr-
ress
No./
appro
ment
No.
ress
en
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eport
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
Place:
Official)
Stamp
Name:
Date :
Designation:
***************
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Sr.No.
1.
2.
انه
3.
4.
5.
6.
7.
8.
9.
10..
11.
12.
13.
14
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
List of circulars which have been consolidated in the
Master Circular on Export of Goods and Services
Circular No
A.D. (MA Series) Circular No. 15
A.P.( DIR Series) Circular No.12
A.P.(DIR Series) Circular No.4
A.P.(DIR Series) Circular No.5
A.P.(DIR Series) Circular No.6
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st 27, 2001
September 24, 2001
October 25, 2001
November 1, 2001
January 28, 2002
March 26, 2002
April 1, 2002
April 1, 2002
April 12, 2002
June 27, 2002
June 29, 2002
July 4, 2002
August 14, 2002
August 14, 2002
August 28, 2002
September 16, 2002
October 3, 2002
October 23, 2002
October 31, 2002
November 8, 2002
December 14, 2002
December 17, 2002
February 14, 2003
April 1, 2003
April 26, 2003
May 2, 2003
May 31, 2003
June 16, 2003
August 16, 2003
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33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
A.P.(DIR Series) Circular No.12
A.P.(DIR Series) Circular No.20
A.P.(DIR Series) Circular No.22
A.P.(DIR Series) Circular No.26
A.P.(DIR Series) Circular No.30
A.P.(DIR Series) Circular No.32
A.P.(DIR Series) Circular No.40
A.P.(DIR Series) Circular No.61
A.P.(DIR Series) Circular No.68
A.P.(DIR Series
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