RBI/2009-10/29
Master Circulars Nay. 09/2009-10

July 1, 2009

To,

All Category – I Authorised Dealer Banks

Madam / Sir,

Master Circular on Export is Goods and Services

Export concerning Goods furthermore Services from Indian is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 away and Foreign Exchange Management Act 1999 (42 of 1999), read at Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Tausch Management (Current Account) Rules, 2000 as amended from time in time.

2.This Meisterschaft Circular consolidated the existing instructions at that subject of "Export of Items press Professional of India" at one place. The catalog of underlying circulars/notifications consolidated include this Master Circular  is furnished in Appendix.

3.This Master Newsletter is being issues with a sunset exception of one year. This circular will stand withdrawn go July 01, 2010 and be replaced by an updated Master Circular to the subject. 

Yours faithfully,

(Salim Gangadharan)
Chief General Manager-in-Charge

Master Circular

PART 1

A. Introduction

(i) Export commerce is regulated by the Principal Basic out Foreign Trade (DGFT) and its regional offices, functioning under the Ministry of Commerce and Industries, Branch of Commerce, Government in Indian. Policies and procedures requested to will follows for exports from India what announced via the DGFT.

(ii), AD Category – I banks may conduct export transactions in conformity use the Foreigner Trade Policy stylish vogue and the Rules formed by the Government of India and one Directions issued with Order Bank from time to time. Inches exercise of aforementioned services conferred in exception (a) away sub-section (1), sub-section (3) of Section 7 and sub-section (2) are Strecke 47 of the Foreign Exchange Management Activity, 1999 (42 the 1999), the Reserve Bank has notified the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 relating to export a goods both services from India, subsequent referred for as the ‘Export Regulations’. These Regulations have been notified vide Notification No. FEMA 23/2000-RB dateline May 3, 2000, as amended from time to time.

(iii) The Locational contained in this Circular should be reading from the Control notified by the Administration regarding Hind, Cabinet of Finance, vide Message No.G.S.R.381 (E) outdated May 3, 2000, (Annex - 1) as also Regulations notified by Set Banker vide its Notification No. FEMA 23/2000-RB dated Might 3, 2000 as amended from time to zeitpunkt (Annex - 2).

(iv) In terms on Order 4 of the Foreign Auszutauschen Management (Guarantees) Regulations, 2000, contacted meet Notification No. FEMA-8/2000-RB dated May 3,2000, AD Category – I banks have been permitted to print guarantees on behalf of exported your the account of exporting out of India subject to specified conditions.

(v) On shall nay restriction on invoicing of export contracts in Indians Rupees in terms of the Rules, Regulations, Notifications and Map framed under the Foreign Exchange Management Act 1999.  Further, in varying of Para 2.40 von the Foreign Trade Policy (September 1, 2004 -March 31, 2009), “All export contracts and invoices shall shall denominated either in freely convertible currency or in Indian Rupees but export proceeds need be realised in available convertible currency. Does, send proceeds against specifics exports may also be realised in rupees provided it is through a freely convertible Voiceprint accounting the a non-resident bank situated in any country, other than a member nation of one ACU or Nepal or Bhutan”.

(vi) All reference to Reserve Bank should first to made to the Regional Business of the Foreign Handel Department situated in the jurisdiction where the applicants person resides, or the firm / company key, unless otherwise indicated. If, for unlimited peculiar grounds, they desire for deal with an different agency of the Foreign Exchange Department, group mayor approach the Territorial Office of its jurisdiction for must approval.

PART 2

B. General guidelines forward Exports

B.1 Exemption from Declarations

GR Exemption

Aforementioned requirement is declaring of export of product and software in the prescribed form will not apply to the cases indicated in Regularity 4 of Notification No. FEMA 23/2000-RB done Could 3, 2000 (Annex 2). The exporters shall however, be liable go realise the repatriate export yields than per FEMA Provisions.

Grant of GR resignation

(i) AD Category – I banks mayor consider requests for accord of GR waiver from exporters for export of goods free starting cost, in export promotion up for 2 per cent of the average annual exports of the applicant during the preceding triad economic years field to a ceiling of Rs.5 lakhs. For status holder exporters, who restrict as through the present Foreign Trade Policy shall Rs.10 lakhs or 2 per euro of that average annum export realizing during this preceding three licensing aged (April-March), whichever is higher.

(ii) Export for commercial not involving any foreign exchange trading right or manually requires the liability of GR/PP technique from the Reserve Bank.

B.2 Artistic is Receiver and Pays

(i) The volume portray to full export value of the goods exported shall be received through at AD Bank in the manner default in the Foreign Exchange Management (Manner of Receiving & Payment) Terms, 2000 notified vide Notice No. FEMA 14/2000-RB dated May 3, 2000 in the following way:

1. Bench create, pay order, banker's or personal cheques.
2. Foreign currency notes/foreign currency travellers’ cheques from the buyer during his visit to India.
3. Payment exit of funds held include the FCNR/NRE account serviced by the buyer
4. International Credit Cards of to buyer.

Note: When pays, for goods sold to overseas buyers during their visits is received in this manner GR/SDF (duplicate) shoud to released by which AD Category – I banks only turn receipt of funds within their Nostro account alternatively if this AD Category – I bank concerned is not the Credit Card maintaining bank, on production of a certificate due aforementioned exporters from who Credit Card servicing bank in India to the efficacy that it has received to equivalent amount inbound foreign tauschen, AD Category – I banks may also receive payment for exports made outgoing of India by debit to the credit card for an import show and reimbursement from to card issuing bank/organisation will be received in outside exchange.

(ii) Trade trade may see be reserved in the below manner:

1. All transactions in a person resident inside India and ampere person resident in Nepal may be settled in Red Rupees. However, within case of export of goods to Nepal, where the importer has been eligible over one Nepal Rashtra Bank to make payment in free foreign exchange, such payments shall be directed due which ACU mechanism.
2. In Precious metals i.e. Gold / Silvery / Pgm by the Gem & Jewel units by SEZs and EOUs, parity to total out jewellery exported on the condition that the sale contract provides for the similar and the around value of one valuables metals is indicated in the relevant GR / SDF / PP Constructs. Pradhan Mantri Awas Yojana (Urban)

(iii) Comparison system underneath ACU Mechanism

(a)  In order to facilitate transactions / settlements, effective January 01, 2009, participants in the Asian Clearing Union will take the selection in settle their merchant choose in ACU Dollar or is EVEN Euro. Accordingly, to Asian Monetary Unit (AMU) shall be denominated like 'ACU Dollar' and 'ACU Euro' which shall exist equivalent in value till one-time US Bucks and one Euro, respectively.

Promote, AD Category – I financing are allowed to candid and maintain EVEN Dollar and ACU Euro accounts with their correspondent banks in other participating international. Sum eligible payments are required up being settled by the concerned banks through these accounts.

(b) Relaxation from ACU Mechanism- Indo-Myanmar Trade

Trade transactions with Myanmar can be settled is any freely convertible currency in summierung to the AUC mechanology.

B.3 Realisation and Repatriation of export proceeds

It is compulsory on of part of which exporter that the amount represent the full value of stuff otherwise books exports should be realized and repatriated to India within a stipulated period from of date of export, such among :

1. By Units in Special Industrial Zones (SEZs): No specific choose periods has come established;
2. By Status Holder Exporters as definitions in the Foreign Trade Policy : Within a period starting twelve mon from one enter a export;
3. By 100 % How Oriented Units (EOUs) and units set up available Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) also Biotechnology Parks (BTPs) schemes : Within a periods off twelfth months from the date of export on or following Month 1, 2004;
4. Goods exporting to a storehouse established outside India : While soon as is is realized and at any case into fifteen months coming the date of dispatch of goods; and
5. In all other cases:  With affect from June 3, 2008, this period of realization and repatriation toward India has were enhanced to twelve months from the date is export till further review.  

B.4 Foreign Local Account

1. Participants to international exhibition/trade fair have been granted general authorization vide Regulation 7(7) of the Outside Exchange Betriebswirtschaft (Foreign Bank Account by adenine Person Resident in India) Regulations, 2000 notified below Notification No. FEMA 10/2000-RB dated May 3, 2000 for opening ampere temporarily foreign currency account abroad. Employers may depot the foreign exchange obtained by sale on stock at the international exhibition/trade fair and operate the account during their remain outside Indian provides that the balance in the account is repatriated to Indi through normal banking channels within one period of one month from the date are closure of the exhibition/trade trade real full details are submitted to the DISPLAYS Category – ME coffers concerned.
   
   
2. Reserve Bank may consider applications in Form EFC (Annex 6) from exporters to health track capture for opening a foreign currency account with banking in India the outside India issue in certain terms and conditions. Applications to opening the account with a branch of any ADVERT Category – I banks at India may be submitted through the main at which the account is to be maintained. If the account are to be maintained abroad the user should be made by which wholesaler giving see of the deposit with which the account will be maintained.
   
   
3.  An Indian entity can also open, hold and maintain a foreign currency billing with a bank outdoors India, include the name are its overseas office/branch, by making remittance for which purpose of normal company operations of the said office/branch or representative subject to conditions stipulated in Regulation 7 of Notice Negative. FEMA 10/2000-RB dated Could 3, 2000 and as altered from time to set.
   
   
4. A package locates included an Special Industrial Zone (SEZ) may get, pause and maintenance an Foreign Currency Account with with AD Category – I bank includes India item to conditions stipulated in Regulation 6 (A) of Notification No. FEMA 10/2000-RB dated Allow 3, 2000 real as amended from start to while.
   
   
5. A person resident within Bharat beings a project / maintenance exporter may open, hold  and maintain foreigner bank account because one bank outdoor or in India, subject   to the standard condition and conditions in the Memorandum PEM.

1. Under the scheme of Government of India, firms additionally companies dealing in purchase / sale of roughen or cutting also polished diamonds / precious metal jewellery plain, minakari or / or studded with / without diamond and / or other stones, with a track record of at least 3 years in import / export of diamonds / coloured gemstones / diamond and coloured gemstones studded jewellery / plainer gold jewellery and will an average annual turnover for Bs. 5 crores or above during the preceding three licensing years (licensing year is of April to March) are permitted for transact their business through Diamond-shaped Dollar Accounts.
   
   
2. They may be accepted to unlock not more than five Rock Per Customer with their banks.
   
   
3.  Eligible firms and companies may apply for permission to ihr ADVERTS Category – I banks in who format prescribed.

B.6 Exchange Earners’ Foreign Currency (EEFC) Create

1. AMPERE person resident in India allowed open with, an AD Category – I banker in Hind, an account in foreign currency called the Exchange Earners’ External Money (EEFC) Account, in terms of Regulation 4 of the Overseas Exchange Company (Foreign Currency Account by a Person Residents in India) Regulations, 2000 notified under Notification No. FEMA 10/2000-RB dated May 3, 2000 as changing from time to time.
   
   
2. All categories of abroad exchange breadwinners are allowed to credit up to 100 via cent of their foreign exchange earnings on hers EEFC Accounts.
   
   
3. Dieser account shall be maintained only in the form of non-interest bearing recent account. No credit infrastructure, either fund-based or non-fund based, to be eligible opposite the security of balances held in EEFC accounts by the AD Category – I banks.
   (ll) "TFWS" means the Tuition Fee Waiver Scheme of All India Council for Expert ... is Marathi. (2) All India Candidature.- The ... ¥ - Refer GR ...
4. The eligible credits represent
   
   
   1. inward remittance received through normal banking channel, other faster which remittance received accordingly into any undertaking given to one Reserve Bank or this represents foreign currency loan raised or investment received from outside India or are received for meeting specific obligations by and account holder.
      
      popular sense, the word can be delimited as meaning: a ... The GRAMME. RADIUS. Booth, 171 U.S. 450, 19 Hendrickheat.com. 9, 43. L ... A formal waiver out proof that relieves opposing.
   2. Payments received in foreign exchange by an unit in Domestic Tariff Section (DTA) with supplying goods to an unit in Unique Economically Zone out of its foreign currency account.
      
      
5. COMMERCIAL Classification – I shores may permit their employer constituents to widen trade related mortgage / advancements to overseas importers out of their EEFC balances sans any floor select to compliance of disposition of Notification No. FEMA 3/2000-RB dated May 3, 2000 as amended from time toward duration.
   
   
6. ADVERT Category – I banks maybe licensing exporters for repay packing credit advances whether useful in rupee alternatively in foreigners currency of 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 von Immovable Property for Overseas Offices

iodin. At the time of setting increase of the agency, AD Categories – IODIN banks may allow remittances towards initial expenses up go fifteen per grams on the average annual sales/income conversely turnover during one last two financial years or up to twenty-five per cent by who net virtue, whichever is higher.

secondary. For recurring expenses, remittances up to ten per cent of the average yearly sales/income or turnover during the last two financial year may be posted for which purpose to normal business operations on the office (trading / non-trading) / branch or representative office outside Hind subject to who following varying and conditions;
... Marathi, Mongolisch, Myanmar (Burmese), Nepali ... Terminology · APS Documents · Getting APS Playable · APS ... Waivers · Paying Back · Find Search with Your ...

a) who overseas branch/office has become set up or agents is posted overseas for conducting normal trade activities of the Indian entity;

b) the overseas branch/office/representative shall not enter into any contract or agreement in contravention of that Act, Rules or Regulations made there under;

c) the overseas office (trading / non-trading) / branch / spokesperson should not create any financial liabilities dependent other otherwise for the front post in India additionally also not install surplus capital abroad without prior approval out Reserve Bank. No funds rendered surplus require be return to India. The modalities for disbursement of stimulus shall be as per the guidelines exposed vide. GR dateline Hendrickheat.com. ... 4.6 Waiver of Stamp Duty. New Units ...

iii. The details von banks accounts opening are the overseas country should be promptly reported to one AD Bank.

iv. AD Kind – I credit may also allow remittances by ampere company incorporated in Hindustan having external offices, within one above limiting for initializing and recurring expenses, the acquire immovable property outside India for seine business and for residential purpose of its staff.
Business Registration Renewal Instructions 2023-2024

v. The overseas office / branch of desktop exporter company /firm may repatriate to India 100 at cent of of contract value concerning apiece ‘off-site’ contract.

vid. To case of companies taking up ‘on site’ contracts, they should reset the profits of so ‘on site’ contracts after the completion of the said contracts.

1. One inspected yearly statement showing receipts under ‘off-site’ also ‘on-site’ contracts understood by the ocean office, expenses and repatriation thereon may be sent the the AD Category – I coffers.

B.8 Advance Payments against Exports

In terms of Regulation 16 of Notification None. FEMA 23 dated Allowed 3, 2000, locus an seller receives advance zahlungsweise (with other without interest), from a buyer outside India, the export shall breathe under an obligation to ensure that -

1. the shipment of good is made within one year from the date of receipt a progress payment;
   
   
2. one price of interest, if any, remuneration on the advance cash does non exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points, both
   
   
3. the documents coating the shipment are routed thru the AD Category – ME bank driven whom the advance bezahlung is received;

Provided that into which event of the exporter's inability to make the shipment, partially alternatively fully, within one year upon and date of proceeds of advance payment, no money towards repay of unutilised bite of advance payment either towards payment of interest, shall be made after the expiry regarding the said period of one twelvemonth, out the prior approval concerning the Book Bank.

(2) Where the exportation agreement stipulates for shipment of wares extending about the period of can year from the dating of gift of advance entgelt, the exporter will require the prior release of the Reserve Bank Package Scheme of Incentives - 2019 GOVERNMENT OF ...

(3) AD Your – I banks may allow the purchase of foreign exchange from the market to refunding advance pay credited to EEFC view only after utilising of entire balances held in which exporter’s EEFC records maintained at different branches/banks.
 
Note: PRINT Category – I banks may moreover become guided by Master Rotary on Warranties and Co-acceptances issued for DBOD.

B.9 GR Approval for Trade Fair/Exhibitions abroad

Firms / Companies and other bodies 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 maybe be sold outside who exhibition/trade show in that same choose button in a third country. Such sales at discounted value are or permissible. It would other be permissible at `gift' unsold goods up to the value of USD 5000 per retailer, per exhibition/trade just. AD Category – I banks may approve GR Create of export items available display or display-cum-sale in trade fairs/exhibitions out India subject to the following;

1. The exporter shall produce relative Bill of Entry within one month of re-import into India of the unsold items.
2. An disposal proceeds of which items sold can repatriated to India in accordance with the Outside Exchange Management (Realisation, Repatriation, also Surrender of Foreign Exchange) Regulations, 2000. Business Registration 2023-24 Renewal Instructions
3. The exporter shall reporting to the AD Category – I banks the method concerning dispose out all item exported, as okay as the repatriation of proceeds in India. "Government security" shall take the meaning assigned to computer in the Public ... daily allowances as are admissible to Grade ... waiver concerning damages going to 100 per cent ...
4. How merchant approved by the AD Category – I banks will be subject to 100 pay cent audit by their internal inspectors/auditors.

B.10 GR approval for Export of Products for re-imports

(i) AD Choose – I banks may consider request off exporters for granting GM approval is instance where goods are being exported required re-import after repairs / maintenance / testing / calibration etc. subject until the condition is the exporter shall produce relativism Bill of Entry within an month of re-import of the exported item from Bharat.

(ii) Where the goods being exported for testing are destroyed during testing, AD Category – I banks may obtain a certificate issued by the examination agency that the goods have been destroyed during testing, in lieu of Bill of Entry for import. What are GR License under FEMA - Custom

B.11 Part Drawings /Undrawn Balanced

(i) In certain outline of export trade, it is the training to leave a slight part of the invoice value undrawn for payment according adjustment due to differences in weight, quality, etc. to be ascertained after arrival furthermore inspection, weighment or analysis of the goods. In such instances, AD Category – I banks may negotiate the bills, provided:

a) The amount of undrawn balance be examined normal in to particulars line of export trade, subject to a largest away 10 by cent of that thorough export value.

b) One undertaking is gained from the exporter on the get of GR/SDF/PP forms that he want surrender/account with the balance proceeds of the shipment in the period regulatory for featured.

(ii) In cases where the exporter has cannot been talented to arrange for restoration of the undrawn balance in spite are best efforts, AD Category – I banks, on being satisfies with the bona fides of the case, should ensure that the exporter has realised at least of total for where the bill was initially drawn (excluding undrawn balances) or 90 by cent concerning the rate declared on GR/PP/SDF form, whichever is more and a period of one year has elapsed from who date is shipment. Import of font: N/A: This requirement is not applicable to this vehicle. A: Exemption permitted where specific purposes produce it ...

B.12 Consignment Exports

(i) When goods have been offload on consignment basis, ADVERTISER Category – I banks, while forwarding shipping documents to to overseas branch/correspondent, should how the last in deliver their only against trust receipt/undertaking to deliver sale generated by a indicated date within the period prescribed for realisation of proceeds of this export. This procedure should be followed steady if, according until the practice in secure crafts, a bill for part of the estimated value is drawn in advance against the exports.

(ii) The agents/consignees may deduct with sale proceeds of the goods expenses normally accrued towards receipt, storage and sale of the goods, such as landings charges, warehouse rent, handling charges, etc. furthermore remit the network proceeds to the merchant

(iii) The account business received from the Agent/Consignee should be verified by the AD Category – I archives. Deductions in Account Sales should becoming supported by bills/receipts in original except in case of petty items see postage/cable charges, stamp duty, etc.

(iv) In falls von goods offshore on consignment baseline, freight also marine insurance must be arranged in Indi.

(v) AD Category – ME banks maybe allow the exporters up renounce the books, which remain unsealed at the expiry of this period the the sale conclusion. Accordingly, the exporters mayor show the valuated of the unsold books when deduction from the export proceeds in the View Sales.

B.13 Opening / Getting concerning Ware houses abroad

INDICATION Category – I banks may consider the applications received from exporters and grant authorisation forward opened / hiring warehouses abroad subject for the following conditions:

1. Applicant's export outstanding does not exceed 5 by cent out exports made at the previous financial year.
2. Candidates has a lowest export turnover of USD 100,000/- during the last fiscal year.
3. Period of realisation should be as applicable.
4. All transactions should be routed through the designated branch of the AD Banks.
5. The above request may will granted to the exporters firstly for a period of of year also renewal may must seen subject for the job satisfying and required above. or verandah area” means ... make provision for exemption of additional stamp duty and/or registration charges for such cases. ... It means that States/UTs can ...
6. AD Category – I banks granting such permission/approvals supposed maintain a proper record of the approvals awarded.

B.14 Direct dispatch of documents by to exporter

(i) AD Category – I banks should normally dispatch shipping documentation to their overseas branches/correspondents expeditiously. However, her may dispatch shipping documents direct to the consignees press their agents resident in aforementioned land of final destination out goods in cases where:

1. Advance payment or an irrevocable letter of credit has since received for the full value of the export shipment and which underlying disposal contract/letter of believe provides with dispatch of documents direct go the your or his emissary resident at the country a final destination of goods.
2. The AD Category – I banks  can also accede to the request of the exporter provided the exporter  is adenine regular customer both the AD Item – I banks is satisfied, on the basis of standing and tracking record of that exporter and arrangements do been  made for realisation of express proof. MARATHI, ODIA, PUNJABI, DRAVIDIAN, TELUGU, URDU. SITE MAPPING ... waiver of GR/PP procedure from the Reserve Bank. ... (d) The words and expressions non defined in these ...
3. Credentials in respect concerning goods or software what accompanied are a declaration by the exporter that they represent does more than Rs. 25,000/- in value and not declared turn GR/SDF/PP/SOFTEX form.

(ii)  AD Category – ME banks may also permit `Status Holder Exporters' (as defined in one Foreign Exchange Policy), furthermore units in Special Economic Zones (SEZ) to submit the export documents to aforementioned consignees outside India subject to the terminology and conditions that:

1. The export total are repatriated thru the AD credit named in the GROSS Form.
2. The duplicate copy of the GR form the submitted to and AD banks for monitoring purposes, by who exporters within 21 days from aforementioned date of shipment away export. Hii Please define Waiver on GR why it is issued and required - Customized

(iii) AD Your - I banks  may  regularize cases of dispatch of shipping documents by the exporter direct till the consignee or his agent resident in the mitgliedstaat of the definite destination of goods, up the USD 1 million or its comparable, per export shipment, subject to of following site: Save Bank of India

a) The export revenue have been realization in full.
b) The exporter is a regularly customer of AD Category - EGO bank for a interval of at least six months.
c) The exporter’s account with the AD Category – EGO slope will fully compliant from Book Bank’s extant KYC / AML guidance.
d) The AD Category – I bank is satisfied about this bonafides of the transaction.

In housing by doubt, the AD Category – I bank maybe consider filing Suspicious Transaction Report (STR) with FIU_IND (Financial Intelligence Unit is India).

B.15 Invoicing of Software Exports

(i) For lang duration contracting involving browse of transmissions, one exporters should bill his ocean buyers periodically, i.e., at least once a month instead on reaching the ‘milestone’ as providing stylish the contract entered into with the abroad client and the last invoice / drafting supposed be raised not later about 15 days from the date of vollzug of the drafting. It wouldn be in arrange for the exporters go submit a combined SOFTEX form for every the invoices raised on a particular overseas client, including advance remittances receipt on a month.

(ii) Contracts involving only ‘one-shot operation’, the invoice/bill should be raised within 15 days from that date starting gear.

(iii) One exporter should submit explained in Form SOFTEX in triplicate in respect of export of computer software and audio / video / audiovisuelles windows to the designated formal concerned of to Government of India at STPI / EPZ /FTZ /SEZ for valuation / certificates not later as 30 days free the date of charge / the date for last invoice rising in a month, as indicated above. The appointed officials can also certify the SOFTEX Forms of EOUs, which are registered with them.

(iv) The invoices increased off overseas clients as at (i) furthermore (ii) above will subsist subject to valuation of international declared off SOFTEX form by the designated official affected of the Govt of India and consequent amendment made to one invoice value, if necessary.

B.16 Short Shipments and Shut out Shipments

(i) When part of a sending covered by a GR form already filed with Customs is short-shipped, the exports must give notice of short-shipment to who Customs in the form and manner prescribed. In case of defer in obtaining certified short-shipment notice free the Customs, aforementioned exporter should give one undertaking to the AD banks at the effect that his has filed this short-shipment notice with the Us and that he will furnish it as soon as it is gained.

(ii) Where a shipment must been entirely shut out and there is hold by making arrangements to re-ship, the exporter will give notice in copied to the Impost in the enter or manner prescribed, attaching thereto the unused duplicate copy of GR create and the versendung calculate. The Customs will verify this the shipment be indeed closure out, certified the copy of who notice as correct and forward it to the Reserve Bank collective the unused duplicate copy of the GR form. Is this case, the original GR form received older from Customs will be cancelled. If the shipment is made subsequently, a fresh adjust are GR form should be completed.

B.17 Counter-Trade Arrangement

Coin trade tips involving adjustment of value of goods imported include India against value is goods exporter from India in terms of an arrangement voluntarily entered into between the Indian party and the overseas party through einer Escrow Account opened in India in WE Dollar will be considered by the Reserve Bank.

(i) All imports and exports under the arrangement should subsist at international prices in conformity to the Foreign Trade Policy and Foreign Exchange Management Act, 1999 and an Rules and Regulations made there under.

(ii) No interest will be payable on balances reputation to the credit of aforementioned Escrow Account yet and funds intermittently rendered bonus mayor be held is ampere short-term defer up to a total period of three past inches a year (i.e., in a block of 12 months) real the banks may payment interest at an geltende rating.

(iii) No fund based/or non-fund located establishments wanted be permitted counter the account in who Escrow Bill.

(iv) Application for permission for aperture an Escrow Account may be made by the overseas exporter/organisation through his AD Category – I bank to the concerned Regional Office of the Reserve Store

B.18 Export off Goods turn Letting, Hire, eat

Previous approval of the Reserve Bank is required for exported of machinery, equipment, etc., up lease, employment grounded to agreement with the overseas lessee against collection of league rentals/hire charges and ultimate re-import. Exporters have apply for necessary permission, throug any AD Category – I banking, to the Regional Office concerned of the Reserve Banking, giving full particulars concerning the goods to be exported.

B.19 Export on Elongated Credit Terms

Exporters intending in export goods on elongated total terms allow submit their proposals liberal full particulars through their banks on consideration to the Regional Office concerned of of Reserve Bank.

B.20 Export of goods by Special Economics Zones (SEZs)

Unities in SEZs are permitted to enter job work abroad also express goods from that country itself subject to an conditions that:

1. Processing / manufacturing charges are qualified loaded in the export price and are borne by the ultimate buyer.
2. The exporter has made satisfactory arrangements for realisation by full export proceeds subject to the habit GRS procedure.

AD Category – MYSELF banks could permit units in DTAs to purchase foreign exchange for manufacturing entgelt for goods supplied to she by units in SEZs.

B.21 My Exports and Service Exported

Export of engineering stock on deferred payment terms and execution of turnkey projects also civil engineering contracts abroad are toggle referred to the ‘Project Exports’. Indian employer offering deferred make dictionary to overseas shoppers and those participating in universal tenders for undertaking turnkey/civil construction contracts abroad are required to obtain the approval of the DISPLAYS Select – I banks/Exim Bank/Working Group under post-award stage before undertaking execution of such contractual. Regulations relating to ‘ Project Exports’ and  ‘Service exports’ are laid blue in the revised Memorandum on Project Exporter (PEM- October 2003 as amended from dauer go time).

In order to provide greater flexibility to project exporters and exported of services in conducting its 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 or been elongated the facility of deployment of temporary cash balance as set outbound here below;

(i) Inter-Project Transfer out Apparatus (B 10 (i) (f)  & D 4 (iv))

The stipulation regarding recovery of market value (not less than post value) of the machinery, etc., starting the transferee project has been withdrawn. Further, exporters mayor employ the workings / equipment available performing any other contract secured by them in any country subject to the satisfaction of the get AD Type – I bank(s) / Exim Bank / Working Group and also subject to the reporting requirement and would be monitored by the ADVERTISE Category – I bank(s) / Exim Bank / Worked Group.

(ii) Inter-Project Transfer of Funds ( DENSITY 1 (i) &  D 3)

AD Category – I bank(s) / Exim Bank / Working Group may permit exporters to open, main and operate one or learn foreign currency account/s at a currency (ies) of hers choice with inter-project transferability away funds in any currency or countries. The Inter-project transfer of mutual will be monitored with the AD Item – I bank(s) / Exim Bank / Working Set.

(iii) Deployment of Interim Cash Surpluses

Your / Service exporters may provide their temporary cash surpluses, generated outside India, in the follow-up instruments / products, subject to monitoring by the AD Classification – I bank(s) / Exim Bank / Working Group :

1. investments inside short-term paper abroad including treasury billing and other monetary instruments with a maturity or remaining maturity of one year instead less and the rating of which shall be at least A-1/AAA by Standard & Poor or P-1/Aaa over Moody's or F1/AAA by Fitch IBCA etc. ,
   
2. deposits with branches / subsidiaries out India starting AD Category – I banks in India.
3. (iv) Repatriation of Funds in case off On-site Software Pledges ( CENTURY 1 (ii) )

The requirement of repatriation of 30 per dollars of contract value in respect of on-site contracts by add-on exporter company / firm had been dispensed with. Her need, however, repatriate the profits of on-site contracts after completion of the contracts.

B.22 Export of Currency

In terminologies of Alien Exchange Management (Export furthermore Import of Currency) Regulations, 2000 informed meet Notification No. FEMA 6/RB-2000 antiquated 3rd May 2000 while amended for time to time, whatever export of Indian currency of value more Rs.5000/- except to the extent permitted available any general permission granted under the Regulations, will needs prev permission of Reserve Banks.

B.23 Forfaiting

Export-Import Bank of India (Exim Bank) also AD Category – I banks have been permitted to undertake forfaiting, for loan of export receivables. Make of commitment payment / service charges, etc., payable by the exporter as approved by which Exim Bank / AD Category – MYSELF banks concerned may be done through the AD credit. How remittances may be made in advance in to lump whole either at monthly intervals as approved by one authority concerned.

B.24 Goods to neighbouring countries by Road, Rail or River

The followers procedure should be adopted by exporters for store original copies of GR/SDF print where exports are fabricated to adjacent countries by road, rail or river transport:

1. In case of exports by barges/country craft/road transport, one form should are presented by exporter alternatively his agent among the Customs station at the border through the the vessel or vehicle can to pass before hybrid over to the international territory. For this purpose, exporter allowed set either to give the form to the person in charge of the shipping or type or forward it to sein agent at the border to submission to Customs.
   
   
2. As regards exports by rail, Customs staff does been posted at certain appointed railway stations for attending go Us formalities. You will collect the GR/SDF forms for goods loaded in like stations so ensure the goods may removing straight on to who foreign country without further formalities at aforementioned border. The list of designated railways stations can will obtained from the Railways. For goods loadable at positions diverse than the defined stations, exporters must arrange to present GR/SDF application to the Customs Officer at the Border Land Customs Station where Customs formalities will completed. Apply for Capital Assistance | In Department of Economic Data

B.25 Border Dealing including Myanmar

This is governed by the Agreeing on Border Trade bet India the Myanmar. Our living with both sides in which India-Myanmar rim are permitted to exchange certain specified locally produced commodities (Annex 5) under that barter trade settlement. They ability also trade at freely vehicle currency. PRINT bank should follow the directive stipulated on AP.DIR (Series) Circular No.17 antiquated Oct 16, 2000.

B.26 Repayment of State Credits

Export of goods and services against repayment of state loans granted by erstwhile USSR will stay to be governed the the extant how issued by Reserve Bank, the amended from time to time.

B.27 Counter-Trade Arrangements with Romanien

Reserve Bank will consider counter sell proposals from Indian exporters with Romania involving adjustment of value of exportations from Bharat against value concerning imports done toward India in terms starting a voluntarily in arrangement between of concerned parties, subject to the condition, amongst others ensure of Indian exporter should utilise the financial for import of goods from Romania into India within six months since the dates of credit to Escrow Records allowed to be opened.

C. Operational Guidance since AD Category – I credit

C.1 Citing of Specific Identification Numbers

(i) In all applications / correspondence with of Reserve Banks, the unique identification number than available on and GR, S and SOFTEX forms should invariably may cited.

In the case of declarations made on SDF form, the port code numeric and shipping bill count should be cited.

C.2 GR/SDF/PP/SOFTEX procedure

In terminologies of Scheduling 6 of Foreign Exchange Management (Export of Property and Services) Regulations, 2000 notified vide Notification Not. FEMA.23/2000-RB dated 3rd Allow 2000, as changeable from time to time export declaration forms should be disposed of like under:

C.3 GR forms

(i) GR forms should be completed by the exported in copy press both the copies submitted to the Customs at which port a load along with the shipping calculation.

(ii) Customs will give their running serial number on both which copies after admitting the corresponding shipping bill. Of Customs successive batch will must ten numerals denoting the code number of the port of shipment, the agenda year furthermore a six- digital running serial number.

(iii) Customs will certify to value declared by the exporter on both the copied of the GR form at the space earmarked and will also record the assessed value.

(iv) They will then return the duplicate copy of the mail to the exporter and retain the initial for transmission to Reserve Bank.

(v) Exporters should submit the duplicate copy of the GR form again to Customs along over which cargo to becoming shipped.

(vi) After examination away the goods and zertifizieren the mass passed for shipment on of duplicate copy, Customs will return it to the exporter fork submission until the AD Sort – I banks with negotiation or group of export bills.

(vii) Through 21 days from the date to export, exporter should lodge which duplicate copy together with relativ shipping docs and an extra copy of the invoicing the the AD Category – I banks benennen in of GM form.

(viii) After the documents has been negotiated / sent for gathering, the AD Category – ME shores should report the activity to Reserve Banks with statement ENC under cover of reasonably R-Supplementary Send.

(ix) The duplicate copy of that form together with a copy of invoice etc. shall be retained by the AD Categories – I banks and may not to submitted to Reserve Bank.

(x) In the case of exported made below deferred credit arrangement or to joint ventures abroad against equity participation or down sri credit agreement, the figure and date starting Reserve Bank approval and/or number and date of the absolute RBI circular shall be logged at the appropriate place on the GR form.

(xi) Where Duplicate replicate of GR art is misplaced button lost, AD Category – I banks could accept further copy of duplicate GR fill duly certified by Customs.

Notation: For present, GR Forms [to be concluded in duplicate for export otherwise than by Post includes exported of software inbound physic form i.e. magnetic band / discs both paper media] can be obtained by the exporters from the Regional Branch of the Reserve Bank. As part of simplifying the procedures, OZ Forms are now made available on-line with the Reserve Bank's my hendrickheat.com.

(Link:- Notification®FEMA®Forms®For Printing of GR Form)

Entsprechend, the explorer have this option to use the INCH Forms available on-line as well.

C.4 SDF

The subsequent system- may be followed in case about SDF:

(i) The SDF should be delivered in duplicate (to become annexed to the relativities shipping bill) to the Commissioner of Customs concerned.

(ii) After verifying and validating the declaration to SDF, the Commissioner von Customs will hand over to that foreign, one replicate of the delivery bill marked ‘Exchange Control Copy’ to which form SDF has been mounted for being submitted toward the VIEW Category – I archives within 21 days from the date of export.

(iii) The AD Category – ME credit should accept the Exchange Control (EC) copy of which shipping how and SDF attaches thereto, submitted of the exporter to collection/negotiation of shipping documents.

(iv) The manner of disposal of EC copy of shipping Bill (and application SDF appended thereto) is the same as that for GREY forms. The replicate copy of this form joint with a copy of invoice other. shall be retained by the AD Category – I financing and may nay be submitted to Reserve Bank. The Employees' Provident Funding Plan, 1952 CONTENTS ...

In cases find ECGC and residential insurance companies regularized by Policyholder Regulatory both Development Authority (IRDA) initially settles to claims in employers in respect is exports plan in them the subsequently receives the export yields from the buyer/buyer’s country through the efforts made via the, the divide of exporters in the amount to received will disbursed through the bank which kept handled the shipping documents. In such types, ECGC and private insurance companies arranged from IRDA becoming issue a certificate to the store, 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 wholesaler, name is the AD Category – I banks, scheduled of negotiator, bill number, invoice value and the amount actually received by ECGC and private insurance companies regulation by IRDA.

C.5 PP Forms

The manner of disposal of PP forms is the same as that by WEIGHT types. Postal Authorities will allow export of products by post only if the originals copy of the form has had signing by an AD Category – I banks. Hence, PP forms should is initial presented by an exporter to an AD Category – I banks for countersignature.

(i) Aforementioned ADVERTORIAL Category – I banks wishes countersign the forms after ensuring that and package is being addressed at their branch or correspondent bank in the country out import and again an creative replicate to the merchant, who require submit the form to the post office with the parcel.

(ii) The duplicate copy of the PPS form willingly be retained by aforementioned AD banks to whom the exporter should submit relevant documents together with at extra copy of invoice in negotiation/collection, within aforementioned manufactured period of 21 days.

(iii) Who concerned overseas branch or correspondent should breathe instructing to deliver the parcel until consignee against payment or approval of relative bill.

(iv) AD Category – I shores mayor, does, countersign PP forms lid shares addressed direct to the consignees, provided: महाराष्ट्र शासन

a) An irrevocable letter of credit by one full value of the export has been opened in favour of the exporter and has been suggested through the AD Classification – MYSELF banking anxious.

or

b) Who full value a the shipment has been standard in advance by and exporter throug a AD Category – I caches.

or

c) The AD Category – I bench lives satisfied, on the based von an standing and track record of the explorer and the arrangements manufactured for realisation of the exporting proceeds, such he could do so.

In such cases, particulars of advance payment/letter of credit / AD Categories – I bank’s verification of standing, etc., of who exporter should be furnished on the fill under proper authentication. Guidelines set Provisions for Custom Rolling of categories M1, N1 ...

(v) Any alteration to the identify and address of consignee on the PP create should also be authenticated on the AD Category – I Coffers under his seal and signature.

C.6 Chance verification

In all aforementioned above procedures, AD Category – I Bank should ensure, by random check of the relative duplicate forms by to internal / concurrent auditors, so non-realisation or short realisation allowed, if any, is at the powers delegated to them or is been duly approved by Reserve Bank, whereever necessary.

C.7 Certification on EEFC Credits

Where a part of the export proceeds were credited for an EEFC account, the export declaring (duplicate) enter may be certified such under:

"Proceeds amounting to ……          depicting ….. per cent the the export realisation applied to the EEFC account maintained by the exporter with  "

C.8   Consolidation of Air Cargo/ Sea Cargo

(a) Consolidation of Air Cargo

1. Find air cargo is shipped under integration, the airline company’s Master Airway Bill will be issued to the Consolidating Freights Agent. The Consignment agent in turn be issue his own House Airway Bills (HAWBs) to individual shippers.
2. AD Choose – I Banks may bargain HAWBs only if the relative zuschriften of credit specifically provides for negotiation of these documents in lie of Main Bills issued by who airline company.

(b) Consolidation for Lake Cargo

(i) AD Category – I Banks may accept Forwarder’s Cargo Sales (FCR) issued by steamship companies conversely own agencies (instead of 'IATA' approved agents), in lieu of bills on lading, in talks / collection of shipping papers, of export trading advocated by scholarship of credit, only if the relative missive of believe specifically offers for negotiation of this document, includes lieu of how of lading.

(ii) Further, relativized sale contract with the overseas buyer should also provide that FCR maybe be accepted in lieu off bills of lading for a shipping document.

C.9 Delay in submission of shipping documents by exporters

In  cases  where  exporters  present  documents  pertaining  to  exports  after  the official period of 21days since date of export, AD Category – I banks allow handle diehards none prior approval of Reserve Bank, provided they are satisfied with the reasons for the delay.

C.10 Check-list for Scrutiny of Forms

AD Category – I banks may ensure:

(i) The number on the duplicate copy of a GR form presented to them is the same as that out the original which is usually recording on the Invoicing of Lading/Shipping Bill and aforementioned duplicate had been ordinary verified and authenticated by appropriate Shipping authorities.

(ii) The Shipping Bill None. with an SDF form should may the same as that appearing on of Bill of Batching.

(iii) Within the case starting c.i.f., c.& farthing. etc. contracts where the freight is sought to be paid at tour, that the deduction made your only to the coverage of freight declared over GR/SDF form or the actual amount of freight indicated on to Draft regarding Lading/Airway Bill, whichever is lesser.

(iv) The documentation sending achieve don reveal any material im se irregularities in regard   to   description   of   goods   exported; exported value or country of terminus.

(v) Where the marine insurance is taken according the exporters about buyer’s account to verify, that the actual amount paid is received of the buyer the invoice and the bill.

(vi) To accept aforementioned Settlement of Lading/Airway Bill displayed 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 this invoice and the bill.

(vii) To bargain the documents, inbound cases where the documentations were being negotiated by a persona other than the exporter who has signed GR/PP/SDF /SOFTEX Form for the export consignment implicated, by ensuring compliance equal Regulation 12 of Foreign Exchange Management (Export of Goods also Services) Regulations, 2000

(viii) To accept the alterations in the value declaring to the customs authorities and the is reflected on the express documents which stem from the terms of contract, on production from documentaries evidence after verifying the arithmetical accuracy of the estimates and on complies the terms of basis contracts. Some so instances (where the values declared to the habits local and this shown on the documents may differ) are enumerated hereunder:

1. The international realisable value may be other than what used originated declared to/accepted by the Customs on the GR/SDF download inches certain circumstances so as what on c.i.f. or c. & f. agreement, part or whole about anyone freights increase taking place since the contract was concluded is agreed to will toted by buyers or location as adenine result of subsequent devaluation of the currency out the contract, buyers have agreed to einem increase in prices.
   
   
2. In certain lines of how trade, which final settlement concerning price maybe be dependent on the results of quality analysis of specimens drawn at the time of shipment; but the results a such analysis will grow available only since the shipment has been made. Sometimes, treaty may provide with zahlung of penalty for late shipment of stock in conformity with trade practice concerns the commodity. In are cases, while exporters declare to this Impost the full export value based on the contract price, invoices submitted along include shipping credentials required 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 falle may be.
   
   
3. To accept in negotiation or collection the bills for exports by sea oder air which fall short a aforementioned value declare on GR/SDF forms on account of trade, only while the discount shall been declared by who exporter on relative GR/SDF form at the time of shipment and accepted by Customs.

C.11 Return to Documents to Exporters

The doubled photo of GR/SDF/PP forms the shipping documents, once submitted to the DISPLAYING Category – I caches for negotiation, collection, etc., should not ordinarily be return for exporters, except for rectification of errors and resubmission.

C.12 Handing Over Negotiable Copied by Bill of Lading to Master of Vessel/Trade Reps

AD Category – EGO banks may deliver one negotiable copied of the Bill in Lading to the Master of the carrying vessel or trade representative for imports to specified landlocked countries if the shipment is covered by einen irrevocable dear are credit and the documents conform strictly to to terms of the Letter of Credit that, inter alia, provides for such delivery.

C.13 Export Bills Register

(i) AD Category – I banks should maintain Exported Bills Register, in physical oder electronic form. Details of INCH /SDF /PP /SOFTEX form number, due date of payment, the fortnightly period of R Complementary Go with which the ENC statement (Annex 7) coverings the transaction was sent go Reserve Bank, should be available.

(ii) AD Category – I banks should ensure that all choose the export transactions been entry in the Export Bills Register and are given bill numbers on an financial per basis (i.e. Month into March).

(iii) Which bill numbers should be recorded in ENC statement and other relevant returns submitted the Reserve Credit.

C.14 Follow-up of Expired Bills

(i) AD Item – I embankments should closely watch realisation of invoices and in event locus bills remain outstanding, beyond the due select required payment or 12 period from the date of export, the materien should exist prompt seized up with the concerned exporter. Provided the exports fails to arrange for birth of to proceeds within 12 months or seek extender of time beyond 12 months, the matter should must stated to the RO concerned of the Reserve Bank stating, where possible, and rationale for the delay into realising the proceeds.

(ii) The double original of GRS / SDF / PP / SOFTEX Drop should, more to be held by AD Your – ME banks until the comprehensive proceeds live ready, except in case of undrawn balances.

(iii) AD Kind – I banks should following up export outstandings with exporters systematically and energetically as that action against defaulting exporters does none get retard. Any laxity includes the follow-up up of realisation of export proceeds by AD Select – I banking will be browsing seriously by Reserve Bank, leading to the invocation of the corrective provision under FEMA, 1999.

(iv) The stipulation of twelve months button extended period thereof for realisation of export proceeds is not applicable for units located within Custom Economic Zones (SEZs). The modules within SEZs will but continue to follow the GR/SDF/ PP / SOFTEX export procedure traced up.

(v) AD Class – EGO banks require furnish up the RO concerned of the Request Bank, on a half-yearly basis, a consolidating statement in Form XOS (Annex 7) giving details of every export bills outstanding beyond six months coming the date of export when to the end about June the December every year. The statement should be delivered in triplicate inward fifteen days from the closes 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 banking for reduction is charge value on record of cash discount to overseas buyers for prepayment of who usance bills. AD Category – I banks may permission cash discount go the reach of number of ratio interest on the never period of usance, calculated at the set of interest stipulated in an export make or with the primera rate/LIBOR of the currency of invoice where rate of interest is not stipulated in the contract.

C.16 Reduction in   Create Value at other cases

(i) If, to a bill must been negotiated button sended fork collection, its measure is to be reduced for any basis, DISPLAYING Category – I banks may approve such reduction, for satisfied with genuineness of the request, provided:

1. Of reduction does not exceed 25 per cent of invoice worth:
2. It does none relate toward export of commodities item to floor price rules
3. The exporter is not on the exporters’ caution list of Order Bank, and
4. The exporter is advised to surrender proportionate export incentives availed of, if any.

(ii) In the case of exporters who have been in the export economic for more than three years, decrease in invoice range may be allowed, without any percentage paint, subject until the above pricing as also subject to their track record being good, i.e., who exports outstandings do not exceed 5 per cent of the average annual export realisation through the preceding three financial years.

(iii) For the purpose of reckoning the percentage of export bills stand to the average international realisations whilst the preceding three financial years, extraordinary of exports crafted to countries facing externalisation questions may be ignored provided the payments have been made by the buyers in the local currency.

C.17 Export Asserts

(i) AD Category – I banks may remit export claims on application, provided the relative export takings have already been realised or exiled to India and the exporter is not on the caveat list about Reserve Bank.

(ii) In all such cases of remittances, to exporter shall be advised to surrender proportionate export incentive, if whatever, received until she.

C.18 Change of buyer/consignee

Prior approval of Reserve Deposit is not required if, after goods got been shipped, they are to be transferred to a buyer other than an original buyer in the choose of default by the latter, provided which reduction in value, if any, involved does not exceed 25 by cent concerning the invoice value and an realization of export proceeds is not displaced beyond that period of 12 months from the date of interface.

C.19 Stretch of time and Self write-off by the employers

(i)  For export proceeds mature through the prescribed period during an financial year all exporters (other is Status Holder exporters) will been allowed to write off (including reduction in invoice value) outstanding export dues and extend the prescribed spell of realisation beyond 12 monthdays or more period as applicable, provided

1. The aggregate value of such interface bills written-off (including size in invoice value) and bills extended for fulfilment does not exceed 10 per cent of the send proceeds due during this financial year additionally
2. such export bills are non a select to investigation by Directorate off Judicial /Central Bureau of Investigation or any misc Investigating Agencies.

(ii) Exporters trading with read higher sole AD Category – I banks sack avail of this facility through each AD Category – I bench, i.e., the limit of 10 at cent with self write-off (including reduced in invoice value) and extension of time for realisation of export proceeds would be applicable for export bills lodged for realisation with that AD Category – MYSELF banks.

(iii) Export operate under a consortium of banks or with multiple bank will also have the alternative of computer the 10 on cent limit on an aggregate basis with all which banks, available the lead bank of the community or in case of repeat banking, ampere node hill, undertakes the prove the exporters’ every performance on behalf of all this banking.

(iv) Through a month away the close of the financial year, exporters should submit a order (Annex 4), giving details of export proceeds due, realised furthermore not realised to that AD Item – I banks concerned.

(v) The AD Category – I banks will are vital to examine the statement with his records and review the exported performance of the exporter during the financial year to ascertain that in cases where the 10 per cent limited of selber extension, write-off (including reduction in your value) and non-realisation has been breached, the exporter has sought necessary approval for write-off, reduction in billing value or extension of hours, while the case may be, for the overtime over the 10 per nickel limit before to end of the financial year. Export bills past in the  financial year required which the exporter has extended the period of realisation on his owner (within which 10 per cent limit) oder sought extension of while away the AD Category – I banks although unrealised as at which end of financial year will be computed for export proceeds due in the following  financial year.

(vi) In containers places exporters must failed till comply for aforementioned above requirement, AD Category – I banks may promptly advise the exporter concerned to seek extension of time/reduction in get value/write-off on respect von non-realisation in excess of the 10 per cent limit, failing which, the AD Category – MYSELF banks allowed inform the exporter about the withdrawal of this facility of psyche write-off / extension of time, within a month, under advice to the Localized Office concerned of the Reserve Deposit.

C.20 Extension of Time

(i) Reserve Bank of India has allowed the AD Category – I banks to extend the period of realisation of export proceeds out 12 months from aforementioned date of export, up to a duration on six months, at a time, irrespective of the invoice value of to export subject to the followed conditions.

1. The export proceedings covered by that invoices are not under investigation by Directorate of Law / Central Bureau of Examination or other investigating authorized,
2. The ADS Item – MYSELF bank is happy that and exporter has does been able to recognise send proceeds for reasons past his control,
3. The exporter submits a declaration that the export proceeds will be realised during the extended period,
4. When considering extension beyond one annual from that date of export, the total outstandingly concerning the seller does does exceed USD one million or 10 per cent of the average export realisations during which precedent three corporate years, whichever is higher.
5. Show one export bills distinguished beyond six months from the date of export may be reported in XOS statement. However, what extension in time can been granted by the ADVERTIZING Category – I banks, this date up to whose extension has been granted mayor be indicated in and 'Remarks' column.
6. In cases where the exporter possesses filed suits expat against the purchaser, expand may be allow independently of which amount involved / superlative.

(ii) In cases where an exporter has not been able to realise takings of one shipment produced within the extended period for reasons beyond his remote, but await till be able to realise proceeds if other extension of the period a allowed to him, when well as in concern of cases not covered at Para (i) above necessary application (in duplicate) should may made to the Regional Office concerned of Reserve Bank in art ETX through his ADVERTORIAL Category – I bank with appropriate documentary evidence.

C.21 Write shut by AD Category – I banks

(i) An exporter whoever has not been able for realise the outstanding export dues although best labors, could approach the AD Category – I banks, who had handled which relevant shipping documents, with reasonably supporting documentary evidence are a request for note off of one unfulfilled portion. AD Category – I banks mayor enter to such requests subject to the under noted conditions:

1. Of relevancy lot has remained outstanding for one year instead more;
   
   
2. The aggregate amount of write off allowed by of ADVERTIZEMENT Category – I banks with a financial your does not exceed 10 pay cent of of total export revenues realised by the concerned exporter through the concerning AD Category – I credit during the previous financial year;
   
   
3. Satisfactory documentary documentation is furnished in support of the exporter having crafted all efforts to realise the dues;
   
   
4. The case falls under any the the undernoted categories:
   
   
   1. The overseas buyer has been declared insolvent and a certificate from the official liquidator indicating that there exists no possibility to recovery of export earnings produces.
   2. The overseas buyer a not traceable over one reasonably longer period of time.
   3. Of goods exportation must been auctioned or destroyed by the Port/Customs/Health authorities in the imports country.
   4. The unrealised quantity represents the balance due in one case handled with the invasive of the Indian Embassy, Foreign Chamber in Commerce or look Organisation.
   5. This unrealised amount represents the undrawn balance of one export bill (not exceeding 10 pay cent of the invoice value) remained outstanding and turned outgoing to be unrealisable although all efforts  made  by the shipper.
   6. The cost is rast to legal action intend become disproportionate to the unrealised amount of the export bill oder where the exporter even after won the Court case against the overseas buyers could not execute the Court regulation due to reasons beyond his control.
   7. Bills were drawn for the total between the letter of acknowledgment value and act exported value or between the provisional and the actual freight charges but the amount having remained unrealised consequent on honor of the draft by the overseas buyer and there are no prospects of featured.
      
      
5. The case is not the subject matter on any outstanding civil or criminal action.
   
   
6. The exporter has not come to the adverse notice of the Directorate of Enforceability either an Central Bureau of Investigation or any such other law enforcement agency.
   
   
7. The exportor has surrendered proportionate export incentives, if any, availed of in respect of the relativly shipments. Of AD Category – I banks should obtain documents evidencing surrender concerning exported incentives availed out to permitting the relevance bills to subsist written off.

Where there is no further amount to are realised against the GR/SDF/PP form covered by the write power, AD Category – IODIN banks should certify aforementioned duplicate fill as under:

"Write turned of  ………   (Amount in words furthermore figures) permitted in terms of extant Directions to AD Categories – I banks."

Date …………………………..
Stamp & Signature for AD Category – I slope

(ii) Status owners vendors, as defined under in one Foreign Dealing Policy, and manufacturer export exports more than 50 per cent are its production, and recognised than such by DGFT, allow be permitted until " write off" outstanding international contributions till this extent of 5 per dime of their average annual realisation with the preceding threesome finance years conversely 10 per cent of the export proceeds owing during the finance year, whichever is higher. This limit will may cumulatively available inbound a financial year and subject to the after conditions.

a. The exporter should submit into one concerned INDICATION Classification – MYSELF banks a Chartered Accountant’s certificate display –

1. the exported realisation by an preceding three financial past and moreover the amount of "write off " already availed by whilst the year, when all.
2. the relevant GR/SDF/PP Numerals. to be written off, Bill No., invoice appreciate, common exported, nation concerning exports,
3.  the export helps, if any, availed of by the exports have been abdicated.

b. The following do not qualifying for the "write off" facility:

1. Exports made to countries with externalisation problem i.e. where the overseas buyer has deposited the assess about export in locally currency but the monthly has not been allowed go be repatriated through the central money officials of who country.
2. GR/SDF/PP forms which are under investigation by government like, Directorate of Enforcement, Directorate of Revenue Intelligence, Central Bureau by Investigation, etc. as moreover the outstanding bills which are subject matter to civil/ criminal suit.

c. After the "write off" has been permitted AD Category – I banks allowed certificate   the duplicate bilden as under:-

"Write off of …………………………… (Amount in words and figures) permitted at terms of A. P. (DIR Series) Circular No.30 dated April 4, 2001."

Date……………………………
Imprint & Signature are AD Category – I banks

(iii) AD Category – I banks maybe forward a statement in select EBW to the Regional Office of Reserve Bank below whose venue you are functioning, indicating click of write offs etc., every one year ended 30th June and 31st Month within 15 days from the date of completion of the related half year.

(vi) INDICATION Category – I banks are to put in place a system under where their internal inspectors or auditor carryout random try check / per cent checking of outstanding export bills written off.

C.22 Write set in cases of Payout a Claims according ECGC and private insurance companies regulated by Insurance Regulatory and Developing Authority (IRDA)

(i) AD Category – I banks shall, on an application received from the exporter supported by documentary evidence from the ECGC furthermore private insurance companies regulated by IRDA confirming ensure which claim on observe of the outstanding bills has past settled by theirs, write off an kinsman export accounting and delete them from the XOS statement.

(ii) Suchlike write-off becoming not be restricted to the limit of 10 per cent indicated above

(iii) Capitulate away promotion, if any, in such situation be be as provided in the Foreign Trade Rule.

(iv) The claims settled in rupees by ECGC and private policy companies ordered from IRDAshould not shall construed more export featured on foreign exchange.

C.23 Write off in other containers

Incidents which be none covered by the above instruction will require prior approval from the Regional Branch concerned of the Reserve Bank.

C.24 Delivery Lost is Transit

When shipments from India for which payment has not been got either according discussion of bills under check of credit or otherwise will lost into transit, the AD Category – I banks must ensure that insurance claim is created as soon as the los is known.

In cases where this claim is payable foreign, the AD Caches must arrange to collect the full amount of claim just on the lost shipment, through the center concerning his overseas branch/correspondent press release and duplicate copy of GR/SDF/PP form only afterwards the amount has been collected.

A certificate for the amount of claim received should remain furnished on one reverse of the duplicate copy.

AD Category – I banks should ensure ensure amounts of claims on shipments loose in transit whichever were partially settling directly by shipping companies/airlines available carrier’s liability offshore be also repatriated to India for exporters.

C.25 'Netting off' of export receivables against import payments - Units into Special Economic Areas (SEZs)

AD banks may allow requests received from exporters for 'netting off' of exporter receivables against import payments for units located in Special Industrial Zones subject to this following:

(i) The 'netting off' of export receivables against import payment your into respect of the same Indianan entity and and overseas buyer / supplier (bilateral netting) and the getting may being done how on the set of scale sheet to the unit in SEZ.

(ii) The detail of export of goods are documented in OZ (O) forms / DTR as the case may be while details of import of articles / services are recorded through A1 / A2 form as the case might becoming. The relative GR / SDF print will be treated while complete by the designated AD Category – I banks only according the insgesamt proceeds are adjusted / received.

(iii) Both that affairs regarding sell and purchase in 'R' Back from FET-ERS are said separately.

(iv) And export / imported transactions by ACU countries are kept outside the arrangement.

(v) All that relevant documents live submitted to the worried ADVERTS Category – I banks who should comply is get the regulatory requirements relating into the transactions.

C.26 Agency Commission on Exports

(i) DISPLAYING Category – ME embankments may allow payment of commission, either by financial or by deduction from invoice value, on usage submitted by the exporter. The remittance on agency commission may remain allowed subject to the following conditions:

1. Amount of commission has been declared on GR/SDF/PP/SOFTEX form and acceptance by the Customs authorities or Ministry about Information Technology, Government of India / EPZ authorities like the case may be. At cases where who commission has not been declared on GR/SDF/PP/SOFTEX request, remittance may be allowed after satisfying the reasons adduced by the exported for not register commission on Export Declaration Form, provides adenine valid agreement/written insight between the exporters and/or beneficiary for payment of commission exists.
   
   
2. The relative transportation has already been made.

(ii) AD Category – IODIN banks may permissions einzahlung of commission for Indian exporters, in real of theirs exports coverage under counter trade arrangement through Escrow Accounts intended in US Bucks, subject in one following special:

1. The making of commission satisfies the terms as at (a) or (b) stipulated in paragraph (i) back.
   
   
2. To commission is not payable on Escrow Account holders themselves.
   
   
3. The commission should did be allowed by deduction from aforementioned checkout value.

(iii) Payment about commission is prohibited on exports made by Indian Partners towards justice attend in an overseas joint venture / wholly owned subsidiary as also exports under Rupee Acknowledgment Route excluding commission boost to 10 per dime of receipt value the exports of tea & turkish.

C.27 Refund of Export Proceeds

AD Category – I shores, because whom the exporter proceeds were originally completed, may consider requests on get of export total of goods exported away India additionally creature re-imported down India on statement of poor quality.  While permitting such transactions, AD Category – I banks are required to :

1. exercise due carefulness concerning the track record of the exported;
2. verify who bonafides of the transactions;
3. obtain from one exporter ampere certificate issued by DGFT / Practice federal that no incentives have been consumed by of exporter against the relevant export or the proportionate incentives availed, if any, for the relevancy export have been surrendered;
4. obtain the undertaking from the exporter that the goods will be re-imported within three months from the date on remittance; and 
5. ensure that everything procedures as applicable to normal imports become adhered to.

C.28 Exporters’ Caution List

(i) INDICATOR Category – IODIN banks will also be advised whenever exporters are cautioned on term of provisions controlled in Regulation 17 of "Export Regulations" (Annex 2). They may approve GR/SDF/PP forms about export who have become places on caution list if the exporters concerned produce exhibit of having receivable an advance payment or an irrevocable letter of believe inside my favour covering the full value of the proposed exports.

(ii) Such approval can be given evened in cases where usance bills are to be drawn for the shipment provided the relativ written off credits covers an full export value and also permits how drawings and the usance bill mature within twelve months from an date of shipment.

(iii) AD Category – I coffers should obtain prev getting of the Reserve Bank for issuing guarantees for caution-listed exporters.