FEMA – Foreign Exchange Management – By: – Mr. M. GOVINDARAJAN – Dated:- 11-2-2016 – The Reserve Bank of India made Foreign Exchange (Export of Goods & Services) Regulations, 2015 ( Regulations for short) by virtue of the powers conferred by Section 7(3)(1)(a) and Section 47 (2) of the Foreign Exchange Management Act, 1999 ( Act for short) and in supersession of its Notification No. FEMA.23/2000-RB, dated 03.05.2000 as amended from time to time, which came into effect from 12.01.2016. The Regulations dealt with the exports, the declaration to be filed, the realization of export value etc., The Regulation 2(iv) defines the term export as including 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. Export with prior approval Regulation 13 provides that certain exports require prior app
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and Bhutan, shall furnish to the specified authority a declaration in one of the forms EDR or SOFTEX. The declaration shall be supported by such evidence as may be specified containing true and correct material particulars including the amount representing- The full export value (Regulation 2(v) defines the term export value in relation to export by way of lease or hire purchase or under any other similar arrangement, includes the charges, by whatever name called, payable in respect of such lease or hire purchase or any other similar arrangement) of the goods or software; or If the full 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; Realization of export proceeds in respect of export of goods/software from third party should be duly declared; The Importer-Exporter Code number allotted by the Director General of Foreign Trade
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ovides that Declaration in Form EDF shall be submitted in duplicate to the Commissioner of Customs. After duly verifying and authenticating the declaration form, the Commissioner of Customs shall forward the original declaration form/data to the nearest office of RBI and hand over the duplicate form to the exporter for being submitted to the authorized dealer. 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 or the Free Trade Zones or Special Economic Zones in India. After certifying ll three copies of SOFTEX form, the designated official shall forward the original directly to the nearest office of RBI and return the duplicate to the exporter. The triplicate copy shall be retained by the designated official for record. Export with declaration Regulation 3(3) clarifies
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
claration by the exporter that they are not more than ₹ 5 lakh in value; Aircrafts or aircraft engines and spare parts for overhauling and/or repairs abroad subject to their reimport into India after overhauling/repairs, within a period of six months from the date of export; Goods imported free of cost on re-export basis; The following goods which are permitted by the Development Commissioner of SEX, EHTP, STP or FTZ to be re-exported, namely: Imported goods found defective, for the purpose of their replacement by the foreign suppliers/collaborators; Goods imported from foreign suppliers/collaborators on loan basis; Goods imported from foreign suppliers/collaborators free of cost, found surplus after production operations. Replacement of goods exported free of charge in accordance with the provisions of Foreign Trade Policy in force, for the time being; Goods sent outside India for testing subject to re-import into India; Defective goods sent outside India for repair and re-impor
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
alue declared in the declaration form does not differ from the value shown in the documents being negotiated or sent for collection ; or 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 sin such declaration and thereupon such constituent shall be bound to comply with such requisition and such constituent signing the declaration shall be considered to be the exporter for the purposes of these Regulations to the extent of the full value shown in the documents being negotiated or sent for collection and shall be governed by these Regulations accordingly. Realization of export value Regulation 9 provides that the amount representing the full export value of goods/software/services exported shall be realized and repatriated to India within 9 months from the date of export, provided that where the goods are exported to a warehouse established outside India with the perm
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
yment therefor if the goods has been sold; and The sale of goods and payment thereof, if goods or software has not been sold or reimport thereof into India as the circumstances permit, within such period as the RBI may specify in this behalf; The omission of the RBI to give directions shall not have the effect of absolving the person committing the contravention from the consequences thereof. Advance payment against exports Regulation 15 provides that where an exporter receives advance payment from a buyer/third party named in the declaration made by the exporter, outside India, the exporter shall be under obligation to ensure that- The shipment of goods is made within 1 year from the date of receipt of advance payment; The rate of interest, if any, payable on the advance payment does not exceed the rate of interest LIBOR + 100 basis points; and The documents covering the shipment are routed through the authorized dealer through whom the advance payment is received. In the event of the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
l, which may, having regard to the circumstances, be given or withheld or may be given subject to such conditions as may be specified by the RBI by directions issued from time to time; That a copy of the declaration to be furnished to the specified authority shall be submitted to such authority or organization as may be indicated in the order for certifying that the value of goods specified in the declaration represents the proper value. No direction shall be given by RBI and no approval shall be withheld by the Authorized dealer unless the exporter has been given a reasonable opportunity to make a representation in that matter. Project imports Regulation 17 provides that where an export of goods or services is proposed to be made on deferred payments 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 propos
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =