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Furnishing declaration for Export of Goods or services - FEMA Ready Reckoner - FEMAExtract Furnishing declaration for Export of Goods or services According to section 7 of FEMA Act, 1999 read with Regulation 3, 4 and 5 of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 , declaration furnish declaration containing true and correct material particular, furnish information required by the Reserve Bank for ensuring realisation of export proceeds to RBI or to such other authorities. Indication of importer-exporter code number - Regulation 5 The importer-exporter code number allotted by the Director General of Foreign Trade under Section 7 of the Foreign Trade (Development Regulation) Act, 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. Declaration of Exports - Regulation 3 In case of exports taking place through Customs manual ports , every exporter of goods or software in physical form or through any other form, either directly or indirectly, to any place outside India , except 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. Declarations shall be executed in sets of such number as specified. When export may be done without furnishing declarations:- For the removal of doubt, it is clarified that, in respect of export of services to which none of the Forms specified in these Regulations apply, the exporter may export such services without furnishing any declaration, but shall be liable to realise the amount of foreign exchange which becomes due or accrues on account of such export, and to repatriate the same to India in accordance with the provisions of the Act, and these Regulations, as also other rules and regulations made under the Act. Realization of export proceeds in respect of export of goods / software from third party should be duly declared by the exporter in the appropriate declaration form Para B.8 of RBI FED Master Direction No. 16/2015-16 dated 01-01-2016. Exemptions from furnishing export declaration form (EDF) - Regulation 4 The requirement of declaration of export of goods and software in the prescribed form will not apply to the cases indicated in regulation 4 of FEM (export of goods or services) regulation, 2015. the exporter shall be liable to realise and repatriate export proceeds as per FEMA Regulations. specified the following categories of the export of goods and services that may be made without furnishing the declaration a) Trade Sample :- trade samples of goods and publicity material supplied free of payment: b) Baggage :- personal effects of travellers, whether accompanied or unaccompanied; c) Stores/ Transshipment cargo / Military supplies :- ship's stores, trans-shipment cargo 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) Gifts less than Rs. 5 Lakhs:- by way of gift of goods accompanied by a declaration by the exporter that they are not more than five lakh rupees in value. e) Aircraft for Overhauling:- 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 their export; (ea) Re-export of leased aircraft :- re-export of leased aircraft/ helicopter and/or engines/auxiliary power units (APUs), either completely or in partially knocked down condition re-possessed by overseas lessor and duly de-registered by the Directorate General of Civil Aviation (DGCA) on the request of Irrevocable Deregistration and Export Request Authorisation (IDERA) holder under Cape Town Convention or any other termination or cancellation of the lease agreement between the lessor and lessee subject to permission by DGCA/Ministry of Civil Aviation for such export/s. f) Import on re-export basis :- goods imported free of cost on re-export basis; g) No EDF form in case of re-export of unsold rough diamonds from special notified zones:- the following goods which are permitted by the Development Commissioner of the Special Economic Zones, Electronic Hardware Technology Parks, Software Technology Parks or Free Trade Zones to be re-exported, namely: 1) imported goods found defective, for the purpose of their replacement by the foreign suppliers/collaborators; 2) goods imported from foreign suppliers/collaborators on loan basis; 3) goods imported from foreign suppliers/collaborators free of cost, found surplus after production operations. (ga) goods listed at items (1), (2) and (3) of clause (g) [ see note 1 ] to be re-exported by units in Special Economic Zones, under intimation to the Development Commissioner of Special Economic Zones / concerned Assistant Commissioner or Deputy Commissioner of Customs. 1) imported goods found defective, for the purpose of their replacement by the foreign suppliers/collaborators; 2) goods imported from foreign suppliers/collaborators on loan basis; 3) goods imported from foreign suppliers/collaborators free of cost, found surplus after production operations. (h) Replacement goods exported free of charge:- replacement goods exported free of charge in accordance with the provisions of Foreign Trade Policy in force, for the time being. (i) Goods sent for testing and re-import:- goods sent outside India for testing subject to re-import into India; (j) Defective goods sent abroad for repair and re-import:- 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. (k) Export with permission of RBI:- exports permitted by the Reserve Bank, on application made to it, subject to the terms and conditions, if any, as stipulated in the permission. Note 1. In the original notification it is mentioned as (i) whereas it should be (g), a reference to old regulation would clear the doubt. Grant of export declaration form (EDF) waiver:- AD Category I banks may consider requests for grant of EDF waiver from exporters as under: Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit as below: For all exporters excluding the exporters of following sectors- (1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector. Annual limit of 2% of average annual export realization during preceding three licensing years. For exporters of the following sectors -(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector. Annual limit of ₹ One Crore or 2% of average annual export realization during preceding three licensing years , whichever is lower . In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme. Exports of goods not involving any foreign exchange transaction directly or indirectly requires the waiver of EDF procedure from the Reserve Bank. Who is a Status Holder? How can I become a Status Holder? Status Holders are business leaders who have excelled in international trade and have successfully contributed to country s foreign trade. Status Holders are expected to not only contribute towards India s exports but also provide guidance and handholding to new entrepreneurs. You may become a Status Holder by applying for a Status Holder Certificate. If your application for the requested Status House is approved, you shall be issued a Status Holder Certificate. [ For more details refer para 1.25, 1.26 ]
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