TMI BlogMaster Circular on Exports of Goods and ServicesX X X X Extracts X X X X X X X X Extracts X X X X ..... A. Introduction PART 2 B. General guidelines for Exports B.1 Exemption from Declarations B.2 Manner of Receipt and Payment B.3 Realisation and Repatriation of export proceeds B.4 Foreign Currency Account B.5 Diamond Dollar Account (DDA) B.6 Exchange Earners Foreign Currency (EEFC) Account B.7 Setting up of Offices Abroad and Acquisition of Immovable Property for Overseas Office B.8 Advance Payments against Exports B.9 GR Approval for Trade Fair/Exhibitions abroad B.10 GR approval for Export of Goods for re-imports B.11 Part Drawings /Undrawn Balances B.12 Consignment Exports B.13 Opening / Hiring of Ware houses abroad B.14 Direct dispatch of documents by the exporter B.15 Invoicing of Software Exports B.16 Short Shipments and Shut out Shipments B.17 Counter-Trade Arrangement B.18 Export of Goods on Lease, Hire, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayables C.28 Agency Commission on Exports C.29 Refund of Export Proceeds C.30 Exporters' Caution List PART 4 Annex-1 Annex-2 - 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 Annex- 8 Appendix PART-1 A. Introduction (i) 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 issued by Reserve Bank from time to time. In exercise of the powers conferred by clause (a) of sub-section (1) and sub-section (3) of Section 7 and sub-section (2) of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e time base for all transactions pertaining to trade related issues. PART 2 B. General guidelines for Exports B.1 Exemption from Declarations GR Exemption 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 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following conditions a. The AD Category-I banks offering this facility shall carry out the due diligence of the OPGSP. b. This facility shall only be available for export of goods and services of value not exceeding USD 10,000 (US Dollar ten thousand). (effective from June 11, 2013) [Ref: A.P. (DIR Series) Circular No.109 dtd 11-06-2013 ] c. AD Category-I banks providing such facilities shall open a NOSTRO collection account for receipt of the export related payments facilitated through such arrangements. Where the exporters availing of this facility are required to open notional accounts with the OPGSP, it shall be ensured that no funds are allowed to be retained in such accounts and all receipts should be automatically swept and pooled into the NOSTRO collection account opened by the AD Category-I bank. d. A separate NOSTRO collection account may be maintained for each OPGSP or the bank should be able to delineate the transactions in the NOSTRO account of each OPGSP. e. The following debits will only be permitted to the NOSTRO collection account opened under this arrangement: I. Repatriation of funds representing export proceeds to India for credit to the expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounts with their correspondent banks in other participating countries. All eligible payments are required to be settled by the concerned banks through these accounts. c) Relaxation from ACU Mechanism- Indo-Myanmar Trade - Trade transactions with Myanmar can be settled in any freely convertible currency in addition to the ACU mechanism. d) In view of the difficulties being experienced by importers/exporters in payments to / receipts from Iran, it has been decided that with effect from December 27, 2010, all eligible current account transactions including trade transactions with Iran should be settled in any permitted currency outside the ACU mechanism, until further notice. 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 : i. Units located in SEZs shall realize and repatriate, full value of goods / software / services, to India within a period of twelve months from the date of export. Any extension of time beyond the above stipulated period may be granted by Reserve Bank of India, on case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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. (iv) A unit located in a Special Economic Zone (SEZ) may open, hold and maintain a Foreign Currency Account with an AD Category I bank in India subject to conditions stipulated in Regulation 6 (A) of Notification No. FEMA 10/2000-RB dated May 3, 2000 and as amended from time to time. (v) A person resident in India being a project / service exporter may open, hold and maintain foreign currency account with a bank outside or in India, subject to the standard terms and conditions in the Memorandum PEM. B.5 Diamond Dollar Account (DDA) (i) Under the scheme of Government of India, firms and companies dealing in purchase / sale of rough or cut and polished diamonds / precious metal jewellery plain, minakari and / or studded with / without diamond and / or other stones, with a track record of at least 2 years in import / export of diamonds / coloured gemstones / diamond and coloured gemstones s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of foreign exchange earners are allowed to credit 100% of their foreign exchange earnings to their EEFC Accounts subject to the condition that a) the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments. Further, in case of requirements, EEFC account holders are permitted to access the forex market for purchasing foreign exchange. b) The facility of EEFC scheme is intended to enable exchange earners to save on conversion/transaction costs while undertaking forex transactions. This facility is not intended to enable exchange earners to maintain assets in foreign currency, as India is still not fully convertible on Capital Account. (iv) It may be noted that the provisions at paragraph (iii) a) and (iii) b) above will apply, mutatis mutandis, also to holder of either a Resident Foreign Currency Account (Domestic) or a Diamond Dollar Account (DDA). [ Ref: A.P. (DIR Series) Circular No.12 dated 31-07-2012 A.P. (DIR Series) Circular No.79 dtd 22-01-2013 ] (v) The eligible cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) The details of bank accounts opened in the overseas country 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, 2000 , where an exporter receives advance payment (with or without interest), from a buyer outside India, the exporter shall be under an obligation to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 discounted value are also permissible. It would also be permissible to `gift unsold goods up to the value of USD 5000 per exporter, per exhibition/trade fair. AD Category I banks may approve GR Form of export items for display or display-cum-sale in trade fairs/exhibitions outside India subject to the following: The exporter shall produce relative Bill of Entry within one month of re-import into India of the unsold items. The sale proceeds of the items sold are repatriated to India in accordance with the Foreign Exchange Management (Realisation, Repatriation, and Surrender of Foreign Exchange) Regulations, 2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (ii) 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. (iii) 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 case of petty items like postage/cable charges, stamp duty, etc. (iv) In case of goods exported on consignment basis, freight and marine insurance must be arranged in India. AD Category I banks may allow the exporters to abandon the books, which remain unsold at the expiry of the period of the sale contract. Accordingly, the exporters may show the value of the unsold books as deduction from the export proceeds in the Account Sales. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, by the exporters within 21 days from the date of shipment of export. (iii) 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. 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_IND (Financial Intelligence Unit in India). B.15 Invoicing of Software Exports (i) For long duration contracts involving series of transmissions, the exporters should bill their overseas clients periodically, i.e., at least once a month or on reaching the milestone as provided in the contract entered into with the overseas client and the last ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of value of goods imported into India against value of goods exported from India in terms of an arrangement voluntarily entered into 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 subject to following conditions : (i) 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. (ii) 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. (iii) No fund based/or non-fund based facilities would be permitted against the balances in the Escrow Account. (iv) Application for permission for opening an Escrow Account may be made by the overseas exporter / organisation through his / their AD Category I bank to the Regional Office concerned of the Reserve Bank. B.18 Export of Goods on Lease, Hir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before undertaking execution of such contracts. Regulations relating to Project Exports and Service Exports are laid down in the revised Memorandum of Instructions on Project and Service Exports (PEM- October 2003 as amended from time to time). In order to provide greater flexibility to project exporters and exporters of services in conducting their overseas transactions, the guidelines stipulated vide paragraphs B.10 (i) (f),C 1(ii), D.1 (i), D.3 and D.4(iv) of the PEM have been modified as set out below. Project/Service exporters have also been extended the facility of deployment of temporary cash balance as set out here under; (i) Inter-Project Transfer of Machinery [B 10 (i) (f) D 4 (iv)] The stipulation regarding recovery of market value (not less than book value) of the machinery, etc., from the transferee project has been withdrawn. Further, exporters may use the machinery / equipment for performing any other contract secured by them in any country subject to the satisfaction of the sponsoring AD Category I bank(s) / EXIM Bank / Working Group and also subject to the reporting requirement and would be monitored by the AD Category I bank(s) / EXIM Bank / ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) In case of exports by barges/country craft/road transport, the form should be presented by exporter or his agent at the Customs station at the border through which the vessel or vehicle has to pass before crossing over to the foreign territory. For this purpose, exporter may arrange either to give the form to the person in charge of the vessel or vehicle or forward it to his agent at the border for submission to Customs. (ii) As regards exports by rail, Customs staff has been posted at certain designated railway stations for attending to Customs formalities. They will collect the GR/SDF forms for goods loaded at these stations so that the goods may move straight on to the foreign country without further formalities at the border. The list of designated railway stations can be obtained from the Railways. For goods loaded at stations other than the designated stations, exporters must arrange to present GR/SDF forms to the Customs Officer at the Border Land Customs Station where Customs formaliti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber. 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 Customs along with the cargo to be shipped. After examination of the goods and certifying the quantity passed for shipment on the duplicate copy, Customs will return it to the exporter for submission to the AD Category I banks for negotiation or collection of export bills. Within 21 days from the date of export, exporter should lodge the duplicate copy together with relative shipping documents and an extra copy of the invoice with the AD Category I banks named in the GR form. After the documents have been negotiated / sent for collection, the AD Category I banks should report the transaction to the Reserve Bank in statement ENC under cover of appropriate R-Supplementary Return. The duplicate copy of the form together with a copy of invoice etc. shall be retained by the AD Category I banks and may not be submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Number. (v) The GR Forms should be duly supported by a certificate from an international cargo surveyor. (vi) The prescribed period of realization and repatriation should be reckoned with reference to the date of transfer of catch as certified by the Master of the Vessel or the date of the invoice, whichever is earlier. (vii) The GR Form, both original and duplicate, should indicate the number and date of Letter of Permit issued by Ministry of Agriculture for operation of the vessel. (viii) The exporter will complete the GR Form in duplicate and both the copies may be submitted to the Customs at the registered port of the vessel or any other port as approved by Ministry of Agriculture. GR (Original) will be retained by the Customs for capturing of data in Customs Electronic Data Interchange. (ix) Customs will give their running serial number on both the copies of GR Form and will return the duplicate copy to the exporter as the value certification of the export has already been done as mentioned above. (x) Rules, Regulations and Directions issued in respect of the procedure for submission of the GR form by exporter to the AD Category-I banks, and the disposal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el is being addressed to their branch or correspondent bank in the country of import and return the original copy to the exporter, who should submit the form to the post office with the parcel. (ii) The duplicate copy of the PP form will be retained by the AD banks to whom the exporter should submit relevant documents together with an extra copy of invoice for negotiation/collection, within the prescribed period of 21 days. (iii) The concerned overseas branch or correspondent should be instructed to deliver the parcel to consignee against payment or acceptance of relative bill. (iv) AD Category I banks may, however, countersign PP forms covering parcels addressed direct to the consignees, provided: 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 The full value of the shipment has been received in advance by the exporter through an AD Category I banks. Or 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeds are credited to an EEFC account, the export declaration (duplicate) form may be certified as under: Proceeds amounting to representing .. per cent of the export realisation credited to the EEFC account maintained by the exporter with C.9 Consolidation of Air Cargo/Sea Cargo (a) Consolidation of Air Cargo Where air cargo is shipped under consolidation, the airline company s Master Airway Bill will be issued to the Consolidating Cargo Agent. The Cargo agent in turn will issue his own House Airway Bills (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. (b) Consolidation of Sea Cargo AD Category I banks may accept Forwarder s Cargo Receipts (FCR) issued by IATA approved agents, in lieu of bills of lading, for negotiation / collection of shipping documents, in respect of export transactions backed by letters of credit, if the relative letter of credit specifically provides for negotiation of this document, in lieu of bill of lading even if the relative sale contract with the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 . To accept the variations in the value declared to the customs authorities and that is reflected on the export documents which stem from the terms of contract, on production of documentary evidence after verifying the arithmetical accuracy of the calculations and on conforming the terms of underlying contracts. Some such instances (where the values declared to the customs authorities and that shown on the documents may differ) are enumerated hereunder: The export realizable value may be more than what was originally declared to/accepted by the Customs on the GR/SDF form in certain circumstances such as where in c.i.f. or c. f. contracts, part or whole of any freight increase taking place after the contract was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd are given bill numbers on a financial year basis (i.e. April to March). (iii) The bill numbers should be recorded in ENC statement and other relevant returns submitted to the Reserve Bank. C.15 Follow-up of Overdue Bills (i) 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 concerned of the Reserve Bank stating, where possible, the reason for the delay in realizing the proceeds. (ii) The duplicate copies of GR / SDF / PP / SOFTEX Forms should, continue to be held by AD Category I banks until the full proceeds are realised, except in case of undrawn balances. (iii) AD Category I banks should follow up export outstandings with exporters systematically and vigorously so that action against defaulting exporters does not get delayed. Any laxity in the follow up of realization of export proceeds by AD C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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.18 Export Claims (i) 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. (ii) In all such cases of remittances, the exporter should be advised to surrender proportionate export incentives, if any, received by him. C.19 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 of default by the latter, provided the reduction in value, if any, involved does not exceed 25 per cent of the invoice value and the realization of export proceeds is not delayed beyond the period of 12 months from the date of export. C.20 Extension of time and Self write-off by the exporters (i) Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he end of financial year will be computed for export proceeds due in the following financial year. (vi) In cases where exporters have failed to comply with the above requirement, 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.21 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: The export transactions covered by the invoices are not under investigation by Directorate of Enforcement / Central Bureau of Investigation or other investigating agencies, The AD Category I bank is satisfied that the exporter has not been able to realise export procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d will be cumulatively available in a year. (iii) The above write-off will be subject to conditions that the relevant amount has remained outstanding for more than one year, satisfactory documentary evidence is furnished in support of the exporter having made all efforts to realize the dues, and the case falls under any of the under noted categories : a) The overseas buyer has been declared insolvent and a certificate from the official liquidator indicating that there is no possibility of recovery of export proceeds has been produced. b) The overseas buyer is not traceable over a reasonably long period of time. c) The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the importing country. d) The unrealized amount represents the balance due in a case settled through the intervention of the Indian Embassy, Foreign Chamber of Commerce or similar Organization; e) The unrealized amount represents the undrawn balance of an export bill (not exceeding 10% of the invoice value) remaining outstanding and turned out to be unrealizable despite all efforts made by the exporter; f) The cost of resorting to legal action would be disprop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge check of write-off outstanding export bills. ix) Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of Reserve Bank of India. [Ref: A. P. (DIR Series) Circular No.88 dtd 12-03-2013 ] C.23 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 per cent indicated above. (iii) Surrender of incentives, if any, in such cases will be as provided in the Foreign Trade Policy. (iv) The claims settled in rupees by ECGC and private insurance companies regulated by IRDAshould not be construed as export realization in foreign exchange. C.24 Write off in other cases Cases which are not covered by the above instruc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 of balance sheet of the unit in SEZ. (ii) The details of export of goods are documented in GR (O) forms / DTR as the case may be while details of import of goods / services are recorded through A1 / A2 form as the case may be. The relative GR / SDF forms will be treated as complete by the designated AD Category I banks only after the entire proceeds are adjusted / received. (iii) Both the transactions of sale and purchase in R - Returns under FET-ERS are reported separately. (iv) The export / import transactions with ACU countries are kept outside the arrangement. (v) All the relevant documents are submitted to the concerned AD Category I banks who should comply with all the regulatory requirements relating to the transactions. C.27 (B) Set-off of export receivables against import payables : (effective from November 17, 2011). AD categ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission should not be allowed by deduction from the invoice value. (iii) Payment of commission is prohibited on exports made by Indian Partners towards equity participation in an overseas joint venture / wholly owned subsidiary as also exports under Rupee Credit Route except commission up to 10 per cent of invoice value of exports of tea tobacco. C.29 Refund of Export Proceeds AD Category I banks, through whom the export proceeds were originally realised may consider requests for refund of export proceeds of goods exported from India and being re-imported into India on account of poor quality. While permitting such transactions, AD Category I banks are required to : (i) exercise due diligence regarding the track record of the exporter (ii) verify the bonafides of the transactions (iii) 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 (iv) obtain an undertaking from the exporter that the goods will be re-imported within three months from the date of remittance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of foreign exchange by any person for the following purpose is prohibited, namely: a. a transaction specified in the Schedule I; or b. a travel to Nepal and/or Bhutan; or c. a transaction with a person resident in Nepal or Bhutan. Provided that the prohibition in clause I may be exempted by RBI subject to such terms and conditions as it may consider necessary to stipulate by special or general order. 4. Prior approval of Govt. of India.--- No person shall draw foreign exchange for a transaction included in the Schedule II without prior approval of the Government of India; Provided that this Rule shall not apply where the payment is made out of funds held in Resident Foreign Currency (RFC) Account of the remitter. 5. Prior approval of Reserve Bank No person shall draw foreign exchange for a transaction included in the Schedule III without prior approval of the Reserve Bank; Provided that this Rule 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) accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Multi-modal transport operators making remittance to their agents abroad Registration Certificate from the Director General of Shipping 6. Remittance of hiring charges of transponders by (a) TV Channels (b) Internet Service providers Ministry of Information and Broadcasting Ministry of Communication and Information Technology 7. Remittance of container detention charges exceeding the rate prescribed by Director General of Shipping Ministry of Surface Transport (Director General of Shipping) 8. Remittances under technical collaboration agreements where payment of royalty exceeds 5% on local sales and 8% on exports and lump-sum payment exceeds USD 2 million Ministry of Commerce and Industry 9. Remittance of prize money/sponsorship of sports activity abroad by a person other than International / National / State Level sports bodies, if the amount involved exceeds USD 100,000. Ministry of Human Resources Development (Department of Youth Affairs and Sports) 10. Omitted 11. Remittance for membership of P I Club Ministry of Finance, (Insurance Division) Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umber infrastructure project Is those related to (i) Power, (ii) Telecommunication, (iii) Railways, (iv) Roads including bridges, (v) Sea port and air port, (vi) Industrial parks, and (vii) Urban Infrastructure (water supply, sanitation and sewage) 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 G.S.R..663 (E) dated August 17,2000,S.O.301(E) dated March 30, 2001, G.S.R..442 dated November 2,2002, G.S.R..831(E) dated December 20,2002, G.S.R..33(E) dated January 16,2003,G.S.R..397(E) dated May 14,2003, G.S.R..731(E) dated September 11,2003, G.S.R..849 (E) dated October 29,2003, G.S.R..608(E) dated September 13,2004), G.S.R.511(E) and G.S.R.512(E) dated July 28,2005 , G.S.R.412(E) dated July 11,2006., G.S.R.349(E) dated July 28, 2006, G.S.R.349 (E) dated May 22, 2009 and G.S.R.382(E) dated May 5, 2010. Please Note: @ @May be read with A.P.(DIR Series)Circular No.26 dated January 14,2010 . PART 5 Appendix List of Circulars which have been consolidated in the Master Circular on Export of Goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .105 June 16, 2003 32. A.P. (DIR Series) Circular No.8 August 16, 2003 33. A.P. (DIR Series) Circular No.12 August 20, 2003 34. A.P. (DIR Series) Circular No.20 September 23, 2003 35. A.P. (DIR Series) Circular No.22 September 24, 2003 36. A.P. (DIR Series) Circular No.26 October 3, 2003 37. A.P. (DIR Series) Circular No.30 October 21, 2003 38. A.P. (DIR Series) Circular No.32 October 28, 2003 39. A.P. (DIR Series) Circular No.40 December 5, 2003 40. A.P. (DIR Series) Circular No.61 January 31, 2004 41. A.P. (DIR Series) Circular No.68 February 11, 2004 42. A.P. (DIR Series) Circular No.73 February 20, 2004 43. A.P. (DIR Series) Circular No.94 June 7, 2004 44. A.P. (DIR Series) Circular No.96 June 15, 2004 45. A.P. (DIR Series) Circular No.97 June 21, 2004 46. A.P. (DIR Series) Circular No.9 September 1, 2004 47 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.P. (DIR Series) Circular No.65 January 12, 2012 79. A.P. (DIR Series) Circular No.73 January 31, 2012 80. A.P. (DIR Series) Circular No.80 February 15, 2012 81. A.P. (DIR Series) Circular No.81 February 21, 2012 82. A.P. (DIR Series) Circular No.92 March 13, 2012 83. A.P. (DIR Series) Circular No.124 May 10, 2012 84. A.P. (DIR Series) Circular No.128 May 16, 2012 85 A.P. (DIR Series) Circular No.08 July 18, 2012 86 A.P. (DIR Series) Circular No.12 July 31, 2012 87 A.P. (DIR Series) Circular No.46 October 23, 2012 88 A.P. (DIR Series) Circular No.47 October 23, 2012 89 A.P. (DIR Series) Circular No.52 November 20, 2012 90 A.P. (DIR Series) Circular No.66 January 01, 2013 91 A.P. (DIR Series) Circular No.79 January 22, 2013 92 A.P. (DIR Series) Circular No.88 March 12, 2013 93 A.P. (DIR Series) Circular No.105 May 20, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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