Export of Goods and Services – Project Exports
032 Dated:- 28-10-2003 Circular
FEMA
Superseded vide A.P. (DIR Series) Circular No. 20 dated 16-01-2026 w.e.f. 01-10-2026<\/p>\n
Export of Goods and Services – Project Exports<\/p>\n
Reserve Bank of India<\/p>\n
Exchange Control Department<\/p>\n
Central Office<\/p>\n
Mumbai – 400 001<\/p>\n
A.P.(DIR Series) Circular No.32<\/p>\n
October 28, 2003<\/p>\n
To<\/p>\n
All Authorised Dealers in Foreign Exchange<\/p>\n
Madam \/ Sirs,<\/p>\n
Export of Goods and Services – Project Exports<\/p>\n
Attention of Authorised Dealers is invited to Regulation 18 of Notification No.FEMA 23\/2000-RB dated 3^rd May 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 in terms of which export of goods or services on deferred payment terms or in execution of a turnkey project or a civil construction contract requires prior approval of the approving authority, which shall consider the proposal in accordance with the guidelines issued by Reserve Bank from time to t<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n enominated in USD. Uniform monetary limit of USD 100 million has been prescribed for authorised dealers and Exim Bank. Project export contracts exceeding USD 100 million will need to be cleared by the Working Group. Prior to this change, these limits were Rs.50 crore for authorised dealers and Rs.200 crore for Exim Bank. Proposals in excess of Rs.200 crore in value were required to be cleared by the Working Group.<\/p>\n \u2022 2.<\/p>\n Buyer's Credit Scheme of Exim Bank<\/p>\n Authorisation granted to Exim Bank to extend Buyer's credit under its Buyer's Credit Scheme has been revised from Rs.50 crore to USD 20 milli<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of contract value can also be considered by the approving authority (viz. authorised dealer\/Exim Bank\/Working Group). Exporters were earlier required to approach Reserve Bank for approval in such cases.<\/p>\n 5.<\/p>\n Export of Consumables<\/p>\n Powers to grant permission to project exporters to export consumables and raise invoices on their own site offices have been delegated to authorised dealers subject to certain conditions. Hitherto, exporters were required to approach Reserve Bank for such permission.<\/p>\n 6.<\/p>\n Liaison Office<\/p>\n At present, number of liaison offices which can be opened by the exporter is restricted to one in a country where more than one project export contract is executed. This restriction has been removed. Exporters can now be permitted by the approving authority viz. authorised dealer\/Exim Bank\/Working Group to open more than one liaison office in one country, if required.<\/p>\n 7.<\/p>\n Initial Remittance<\/p>\n Remittance for meeting initial \/ mobilisation expenses from India <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n uthorised dealers could open letters of credit in India in favour of third country suppliers provided they were on back-to-back basis. Availability of letters of credit opened by foreign client in favour of the Indian exporters with similar terms and conditions need not be insisted upon. However, the amount of such letter of credit should not exceed the value of third country imports approved by the approving authority while according post award clearance to the project export proposal and payment under such letters of credit should be made from out of the project receipts.<\/p>\n Authorised dealers can now grant waiver for submission of the exchange control copy of the bill of entry subject to certain conditions where third country purchases are directly transported by the overseas supplier to the project site and for which payment is made under letter of credit opened in India. Exporters were earlier required to approach Reserve Bank for grant of such waiver.<\/p>\n 9.<\/p>\n Export of Equipment<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Copies of such approvals may henceforth be sent to the Regional Office of Reserve Bank and in addition, to Exim Bank and ECGC only if their participatory interest by way of funded \/ non-funded facilities, insurance \/ risk cover, etc. is involved.<\/p>\n 11.<\/p>\n Progress Report on Execution of Contract.<\/p>\n Progress of the execution of the contract in Form DPX 5 (now renumbered as DPX 3) was being submitted on a half-yearly basis by the exporter to all the institutions constituting the Working Group and the concerned Regional Office of Reserve Bank through the exporter's bank. Such report may now be sent to the authority approving the project export contract and the concerned Regional Office of Reserve Bank. It will however, be necessary to forward the report to Exim Bank \/ ECGC also in all cases where their financial \/ non-financial assistance \/ risk cover has been obtained. In the case of project export proposals approved by the Working Group, the report in Form DPX 3 may be sent to<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ion, etc. may be forwarded to Exim Bank and ECGC.<\/p>\n 13.<\/p>\n Sale of Equipment Exported on Re-import Basis, etc.<\/p>\n Equipment taken out of the country on reimport basis is required to be reimported to the country. However, if the equipment is sold abroad \/ given on hire basis, documentary evidence showing repatriation of entire sale proceeds or hire charges of equipment given on hire basis to other contractors abroad is required to be submitted to Reserve Bank. Such evidence will now be submitted to the authorised dealer who is monitoring the project.<\/p>\n 14.<\/p>\n Completion of Projects<\/p>\n On completion of the Project, the exporter is required to submit a report giving full account of the various steps taken by him to Reserve Bank and all the members of the Working Group. Such report will now be sent within one month from the completion of the Project, by the exporter through his banker to the approving authority which had cleared the project export contract at the post award stage and in <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \u2022 \u2022 \u2022 \u2022 17.<\/p>\n Foreign Currency Account in India<\/p>\n Approving authority of the overseas contract i.e. Authorised Dealer\/Exim Bank\/Working Group can now allow project\/service exporters to open, hold and maintain foreign currency account in India subject to certain terms and conditions. Hitherto, project\/service exporters were required to approach Reserve Bank for permission to open such account in India.<\/p>\n 18.<\/p>\n Details of Site \/ Liaison Office, Payment of Agency Commission on Overseas <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Export of Goods and Services – Project Exports032 Dated:- 28-10-2003 CircularFEMASuperseded vide A.P. (DIR Series) Circular No. 20 dated 16-01-2026 w.e.f. 01-10-2026 Export of Goods and Services – Project Exports Reserve Bank of India Exchange Control Department Central Office Mumbai – 400 001 A.P.(DIR Series) Circular No.32 October 28, 2003 To All Authorised Dealers in Foreign … Continue reading “Export of Goods and Services – Project Exports”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-329","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=329"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/329\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n\t\t\t\tMonetary limits for clearance of service export contracts have also been revised from Rs.5 crore for authorised dealers and Rs.10 crore for Exim Bank to USD 100 million uniformly for authorised dealers and Exim Bank. Service export contracts exceeding USD 100 million (revised from the present limit of Rs.10 crore) will need to be cleared by the Working Group.<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n\t\t\t\tIntimate the account number, name of the bank, place and country where such account is opened within 15 days from the date of opening of such account.<\/p>\n
\n\t\t\t\tStatement of operations on the account should be on half yearly basis.<\/p>\n
\n\t\t\t\tBank certificates evidencing the amount repatriated, periodically.<\/p>\n
\n\t\t\t\tClosure of foreign currency account with bank certificates evidencing transfer of balance to India immediately on completion of the relevant contract.<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n