Handbook On Fema Regulations
Handbook On Fema Regulations
HANDBOOK ON
FEMA REGULATIONS
IMPORTS & EXPORTS
HANDBOOK ON
FEMA REGULATIONS
IMPORTS & EXPORTS
Compiled by:
R. Narotham Reddy,
M.Com, CAIIB, CTF, Ce AML KYC, CDCS,
Member of Faculty,
International Banking
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 2
FOREWORD
2. As part of the Government’s efforts to integrate India with the global economy
and especially in the wake of the global financial crisis the regulatory framework in
the area of foreign exchange is being reviewed frequently and some more
liberalization has been brought out during the last quarter of 2008. To enable our
staff dealing with Imports and Exports at authorised branches and TFCPCs, to
handle their jobs more effectively, this book had been compiled to contain all the
FEMA regulations in a handbook form. It was first brought out in January 2006 and
based on the encouraging feedback, its second and third updated editions were
brought out in January 2007, January 2008 and now the fourth and updated edition.
3. I am sanguine that this volume, just as the earlier editions, will be well
received by the Forex branches as a very useful reference book. I trust that the staff
at our Forex branches will be benefited in handling day to day issues relating to
Imports and Exports in an error free and customer friendly manner. I compliment
Shri. Narotham Reddy, Faculty of the College for his efforts in compiling and
periodically updating this book. Suggestions are welcome to further improve the
quality and usefulness of the Handbook.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 3
INDEX
Introduction
Part I - Import of Goods
1. General
2. Form A-1
3. Import Licenses
i) General
ii) Endorsement on Import Licences
iii) Preservation of Import Licences
iv) Import Licences for C.I.F.Value
v) Imports on C.I.F.basis by Government Departments / Public Sector
Undertakings
4. Manner of Rupee Payment
5. Letter of Authority holders / Agents of Importers
6. Obligation of Purchaser of Foreign Exchange
7. Time Limit for Settlement of Import Payments
8. Interest on Import Bills
9. RBI’s Instructions on Trade Credits for Imports into India
i) General
ii) Amount and Maturity
iii) All-in-cost Ceilings
iv) Guarantee
v) Reporting Arrangements
10. Advance Remittance
11. Advance Remittance for Import of Rough Diamonds
12. Advance Remittance for Import of aircrafts / helicopters / other aviation
related purchases
13. Remittances for Import of Aircraft /Aircraft Engine/Helicopter on Lease
basis
14. Remittances for Import of films on lease / rental basis
15. Advance Remittances for Import of Services
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 4
16. Remittances for War Risk Insurance / Bunker /Congestion Surcharge /
Premium for extended Insurance
17. Remittances for Imports under Penalty
18. Remittances against Replacement Imports
19. Guarantees for Replacement Import
20. Evidence of Import
i) General
ii) Imports in non-physical form
iii) Imports on D/A basis
iv) Issuing acknowledgement
v) Verification by auditors
vi) Preservation of evidence of Import
vii) Certificate from CEO/Auditor of the Company as evidence of
import
21. Follow up for Import Evidence
22. Follow up for Import Evidence – Bank’s instructions
23. Import of Equipments by BPO Companies in India for International Call
Centre
24. Handling of Import Documents on collection basis
25. Direct Receipt of Import Bills / Documents
26. Direct receipt of Import Bills / Documents - Import of Rough Diamonds
27. Postal Imports
28. Import of Gold/Platinum/Silver by Nominated Banks/Agencies
i) Import of Gold on consignment basis
ii) Import of Gold on unfixed price basis
29. Direct Import of Gold
30. Import of Gold on Loan basis
31. Import of Gold, Silver and Jewellery by NRIs
32. Import factoring
33. Merchanting Trade
34. Issue of Bank Guarantee on behalf of service importers
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 5
Part II – Export of Goods and Services
1. General
2. Exemptions from Declarations
3. GR Approval for Exports
4. Numbering of Forms
5. Manner of Payment
6. Payments in foreign currency to units in SEZ
7. Guarantees against Exports
8. Foreign Currency Accounts
i) Opening of Foreign Currency Accounts
ii) Diamond Dollar Account
iii) Exchange Earners’ Foreign Currency (EEFC) Account
9. Acquisition of Immovable Property for Overseas Offices
10. Counter-Trade Agreement
11. Export of Goods on Lease, Hire etc.
12. Participation in Trade Fairs Abroad
13. Project Exports and Service Exports
14. Export on Elongated Credit Terms
15. Export of Goods and Services by Units in Special Economic Zones
i. Realisation of Export Proceeds
ii. Job Works Abroad
iii. Receipts of payment in precious metals for EOUs and units in
SEZs
iv. Netting off of export receivables against import payments
v. Issue of equity shares against import of capital goods
vi. Purchase of foreign exchange by units in DTAs
16. Forfaiting
17. Disposal of Copies of Export Declaration Forms (GR/PP/SOFTEX forms)
18. Counter Signature on PP forms
19. Terms of Payment – Invoicing (Software)
20. Disposal of SOFTEX Forms
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 6
21. Shut out Shipments and Short Shipments
22. Consolidation of Air Cargo
23. Exports by Barges/Country Craft/Road Transport
24. Barter Trade with Myanmar
25. Delay in submission of shipping documents by exporters
26. Scrutiny of Export Declaration Forms
i. Bill of Lading/Shipping Bill
ii. Freight Payment
iii. Inter se discrepancies
Notes
A. Differences in Value due to Freight
B. Transfer of Documents
C. Differences in Value due to quality analysis / late shipment
penalty
27. Trade Discount
28. Advance Payments against Exports
29. Part Drawings
30. Consignment Exports
i. Payment of Freight and marine Insurance
ii. Exports to CIS Countries and East European Countries
iii. Opening / Hiring Warehouses Abroad
31. Direct Despatch of Shipping Documents
32. Handing Over Negotiation Copy of Bill of Lading to Master of
Vessel/Trade Representative
33. Export Bills Register
34. Follow-up of Overdue Bills
35. Reduction of Invoice Value on Account of Prepayment of Usance Bills
36. Reduction in Value
37. Export Claims
38. Change of Buyer/Consignee
39. Self Write-off, Reduction in Invoice Value
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 7
40. Extension of Time Limit in Other Cases
41. Shipments Lost in Transit
42. Payment of Claims by ECGC/ insurance companies registered with IRDA
43. “Write off” of Unrealised Export Bills
44. Return of Documents to Exporters
45. Exporters’ Caution List
46. Remittance of Agency Commission on Exports
47. Refund of Export Proceeds
Annexures
Annex-1 BEF statement
Annexure -7
Part I : Approvals of Trade Credit granted by all branches during the (Month /
Year)…………
Part I: Approvals of Trade Credit granted by all branches during the (Month /
Year)………..(excel format)
Part II : Disbursement, Utilisation and Debt Servicing of Trade Credit during (month) /
(year)………. (excel format)
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 8
Introduction
Foreign Exchange Management (Current Account Transactions) Rules, 2000 were
circulated by Government of India vide Notification No. G.S.R.381 (E) dated May 3,
2000, and amended vide Notification No. SO 301 (E) dated March 30, 2001.
Reserve Bank of India under Foreign Exchange Management Act issues directions
from time to time bringing out the changes and operational clarifications that are
applicable to foreign trade and all AD Category - I banks in Foreign Exchange are
required to strictly adhere to these regulations.
2. Reserve Bank has made the Foreign Exchange Management (Export and Import
of Currency) Regulations, 2000 vide its Notification No.FEMA 6/RB-2000 dated 3rd
May 2000 and subsequently modified vide Notification No.FEMA 38 / 2001 – RB
dated 27th February, 2001. Any export of Indian currency of value exceeding
Rs.5000/- except to the extent permitted under any general permission granted
under the Regulations, will require prior permission of Reserve Bank.
5. Import and Export of goods and services are regulated by the Directorate General
of Foreign Trade (DGFT) and its regional offices, functioning under Ministry of
Commerce & Industry, Department of Commerce, Government of India. Policies and
procedures required to be followed for Imports to India and Exports from India are
announced by the DGFT. AD Category - I banks, while undertaking import and
export related transactions, are required to ensure that these are in conformity with
the Foreign Trade Policy in force.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 9
6. Further, AD Category - I banks should follow normal banking procedures and
adhere to the provisions of Uniform Customs and Practices for Documentary Credits
(UCPDC), etc. while opening letters of credit for import into India on behalf of their
constituents. In respect of import of drawings and designs, compliance with the
provisions of Research & Development Cess Act, 1986 may be ensured. AD
Category - I banks may also advise importers and exporters to ensure compliance
with the provisions of Income Tax Act, wherever applicable.
7. Banks are also expected to meticulously adhere to "Know Your Customer" (KYC)
guidelines issued by Reserve Bank (Department of Banking Operations &
Development) in all their dealings.
8. Financial year' (April to March) is to be reckoned as time base for all transactions
pertaining to trade related issues.
9. In this Handbook, the rules and regulations from the foreign exchange angle under
Foreign Exchange Management Act that are to be followed by Banks (AD Category -
I banks) while undertaking import and export related transactions on behalf of their
clients are only discussed. Where specific regulations do not exist, AD Category - I
banks may be governed by normal trade practices. The users of this Handbook are
required to check for the updates of these regulations, which are brought out by
Reserve Bank of India under ‘AP (DIR) Circulars’ series from time to time. These
circulars are available on Reserve Bank’s website: rbi.org.in.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 10
PART I - IMPORT OF GOODS
1. General
Rupee accounts maintained in India by citizens of India, Nepal and Bhutan, residents
in Nepal and Bhutan, as well as Indian, Nepalese and Bhutanese firms, companies
or other organizations, including Banks functioning in these countries are regarded
as resident accounts and rupee transfers to such accounts, for imports in to India
may be made freely, without reference to the Reserve Bank of India.
Sale of Foreign Exchange for current account transactions# with persons resident in
Nepal and/or Bhutan, or against import into these countries made by residents in
India, is prohibited.
Directions contained hereunder are also applicable to imports which are financed in
rupees and payment for which is made by crediting rupees to a non-resident account
in India or to a rupee account maintained by a non-resident bank.
#
Transactions relating to Imports are current account transactions
2. Form A-1
Applications by persons, firms and companies for making payments, exceeding USD
500 or its equivalent, towards imports into India must be made on Form A-1.
Variants of this form have been devised in different colours to be used for –
3. Import Licenses
i) General
AD Category - I banks may freely open letters of credit and allow remittances for
import of goods unless they are included in the negative list requiring licence
under the Foreign Trade Policy in force. In such cases, licences marked ‘For
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 11
Exchange Control purposes’ should be called for and special conditions, if any,
attached to such licences adhered to.
b. Imports are sometimes made on F.O.B. terms and Indian importers agree
to the suppliers paying for the freight to be reimbursed to them along with
the cost of the goods. AD Category - I banks in such cases should before
making the remittance of freight charges, ascertain the actual freight
amount paid with reference to the original freight bill or memo issued by
the shipping company or the amount stated on the relative bill of lading.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 12
Undertakings/Government Department, if the mode of transport is other than
ocean transport.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 13
(b) Where foreign exchange acquired has been utilised for import of goods into
India the AD Category - I bank should ensure that importer furnishes an
evidence of import to his satisfaction, as laid down in paragraph 10.
(c) In cases payment for import is made by way of credit to resident account of
the overseas exporter maintained with a bank in India, AD Category - I banks
should ensure compliance with the instructions contained in sub-paragraph
(a) above.
(e) The directions contained in this paragraph are also applicable to payments for
imports in to India are made through ACU mechanism.
(ii). AD Category - I banks may permit settlement of import dues delayed due to
disputes, financial difficulties etc. Interest in respect of such delayed payments may
be permitted in terms of the directions in Para 9.
(iii). Time limit for import of books; Remittances against import of books may be
allowed without restriction as to time limit, provided, interest payment, if any, is as
per the instructions in para 9 (iii).
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 14
i) AD Category - I banks may allow payment of interest on usance bills or
overdue interest for a period of less than three years from the date of shipment
at the rates prescribed for trade credits mentioned in the Para 9 (iii).
ii) In case of pre-payment of usance import bills, remittances may be made only
after reducing the proportionate interest for the unexpired portion of usance at the
rate at which interest has been claimed or LIBOR of the currency in which the
goods have been invoiced, whichever is applicable. Where interest is not
separately claimed or expressly indicated, remittances may be allowed after
deducting the proportionate interest for the unexpired portion of usance at the
prevailing LIBOR of the currency of invoice.
i) General
‘Trade Credits’ (TC) refer to credits extended for imports directly by the overseas
supplier, bank and financial institution for original maturity of less than three
years. Depending on the source of finance, such trade credits include suppliers’
credit or buyers’ credit. Suppliers’ credit relates to credit for imports in to India
extended by the overseas supplier, while buyers’ credit refers to loans for
payment of imports in to India arranged by the importer from a bank or financial
institution outside India for maturity of less than three years. It may be noted that
buyers’ credit and suppliers’ credit for three years and above come under the
category of External Commercial Borrowings (ECB) which are governed by ECB
guidelines.
AD Category - I banks are permitted to approve trade credits for imports into
India up to USD 20 million per import transaction for import of all items
(permissible under the Foreign Trade Policy in force) with a maturity period (from
the date of shipment) up to one year. For import of capital goods, AD Category -
I banks may approve trade credits up to USD 20 million per import transaction
with a maturity period of more than one year and less than three years. No roll-
over/extension will be permitted by the AD beyond the permissible period.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 15
iii) All-in-cost Ceilings
Up to one year
More than one year but less than three 200 basis points
years
iv) Guarantee
v) Reporting Arrangements
(a) i). If the amount of advance remittance exceeds USD 100,000 or its
equivalent, an unconditional, irrevocable standby Letter of Credit or a
guarantee from an international bank of repute situated outside India or a
guarantee of an Authorised Dealer in India, if such a guarantee is issued
against the counter-guarantee of an international bank of repute situated
outside India, is obtained.
ii). In cases where the importer (other than a Public Sector Company or a
Department/Undertaking of the Government of India/State Governments) is
unable to obtain bank guarantee from overseas suppliers and the AD
Category - I bank is satisfied about the track record and bonafides of the
importer, the requirement of the bank guarantee/ standby Letter of Credit may
not be insisted upon for advance remittances upto USD 5,000,000 (US dollar
five million). AD Category - I banks may frame their own internal guidelines to
deal with such cases as per a suitable policy framed by the bank's Board of
Directors.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 17
(b) All payments towards advance remittance for imports shall be subject to the
following conditions:
With a view to liberalising the procedure further and facilitate import of rough
diamonds, AD Category - I banks are,permitted to allow advance remittance without
any limit and without bank guarantee or standby letter of credit, by an importer (other
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 18
than a Public Sector Company or a Department / Undertaking of the Government of
India / State Government/s), for import of rough diamonds into India from the
undernoted mining companies, viz.
(A. P. (DIR Series) Circular No. 03 dated August 04, 2008 and A. P. (DIR Series) Circular No.
08 dated August 21, 2008)
While allowing the advance remittance, AD Category - I banks may ensure the
following:
(iii) Advance payments should be made strictly as per the terms of the sale
contract and should be made directly to the account of the company
concerned, that is, to the ultimate beneficiary and not through numbered
accounts or otherwise. Further, due caution may be exercised to ensure that
remittance is not permitted for import of conflict diamonds;
(iv) KYC and due diligence exercise should be done by the AD Category - I
banks for the Indian importer entity and the overseas company; and
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 19
In case of an importer entity in the Public Sector or a Department / Undertaking of
the Government of India / State Government/s, AD Category - I banks may permit
advance remittance subject to the above conditions and a specific waiver of bank
guarantee from the Ministry of Finance, Government of India where the advance
payments is equivalent to or exceeds USD 100,000/- (USD one hundred thousand
only).
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 20
iv. In the case of a Public Sector Company or a Department / Undertaking of Central
/ State Governments, the AD Category - I bank shall ensure that the requirement
of bank guarantee has been specifically waived by the Ministry of Finance,
Government of India for advance remittances exceeding USD100,000.
v. Physical import of goods into India is made within six months (three years in case
of capital goods) from the date of remittance and the importer gives an
undertaking to furnish documentary evidence of import within fifteen days from
the close of the relevant period. It is clarified that where advance is paid as
milestone payments, the date of last remittance made in terms of the contract will
be reckoned for the purpose of submission of documentary evidence of import.
vi. Prior to making the remittance, the AD Category – I bank may ensure that the
requisite approval of the Ministry of Civil Aviation / DGCA / other agencies in
terms of the extant Foreign Trade Policy has been obtained by the company for
import.
vii. In the event of non-import of aircraft and aviation sector related products, AD
Category - I bank should ensure that the amount of advance remittance is
immediately repatriated to India.
Prior approval of the concerned Regional Office of the Reserve Bank will be required
in case of any deviation from the above stipulations.
b. In cases where the lease transaction contains option to purchase the asset at
the end of the lease period, it will require prior approval from the Reserve Bank
of India.
c. ADs may permit airline companies (other than a Public Sector company or a
Department/Undertaking of the Government of India/State Government/s) to
remit up to USD 1,000,000 (US Dollar one million only) per aircraft towards
security deposit (for payment of lease rentals) with lessor for import of aircraft/
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 21
aircraft engine / helicopter on operating lease without a standby letter of credit
or a guarantee from a reputed international bank abroad or a guarantee of an
AD in India against the counter-guarantee of a reputed international bank
abroad subject to following conditions:
ii) The airline company has obtained necessary approval from appropriate
authority like Ministry of Civil Aviation/Director General of Civil Aviation,
Government of India for importing the aircraft/helicopter on operating lease.
iv) The final maturity of the security deposit should not be beyond the date of
the last instalment towards lease rental or date of return of the aircraft /
helicopter to the lessor, whichever is later. If required, the deposit amount
may be adjusted towards lease rentals. However, the balance security
deposit, if any, should be repatriated before expiry of the lease period.
Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee
from a bank of international repute situated outside India, or a guarantee from an AD
Category – I bank in India, if such a guarantee is issued against the counter-
guarantee of a bank of international repute situated outside India, should be obtained
from the overseas beneficiary.
AD Category – I banks should also follow-up to ensure that the beneficiary of the
advance remittance fulfils his obligation under the contract or agreement with the
remitter in India, failing which, the amount should be repatriated to India.
The ECCB approved Bank’s policy guidelines for all admissible Current Account
transactions for Import of Services, without insisting on Bank Guarantee for amounts
above USD 100,000 and upto USD 500,000 or its equivalent are given below;
i) The advance remittance will be effected on behalf of our customers only and all
KYC, Anti Money Laundering (AML) guidelines shall be strictly adhered to.
ii) Documentary evidence, such as agreement, proforma invoices etc. indicating the
cost of the services to be provided /imported and specific demand of the overseas
service provider shall be obtained and kept as branch record.
iii) The overseas service provider shall also furnish an undertaking that the amount
shall be repatriated immediately in case the obligations under the contract /
agreement are not fulfilled /met.
iv) Satisfactory Opinion Report on the overseas supplier / accredited agent shall be
obtained beforehand, from an independent agency or from our Representative /
Foreign Offices / Correspondents abroad.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 23
v) Remittances shall be made by the Bank direct to the overseas suppliers, through
banking channel.
vi) Since such imports are in non-physical form, branches shall ensure to obtain an
undertaking and or a certificate from the Chartered Accountant of the importer /
remitter, after a reasonable time, indicating that the services have been procured /
imported and taxes, wherever applicable, have been deducted / paid, as per the
terms / format contained in Section X, Chapter 22 of the FD Codified Circular.
vii) For non-borrower customers, the remittance shall be made subject to availability
of funds in their accounts and Bank is satisfied about the bonafide of the importer
and the purpose of the remittance.
viii) So far as the borrower customers are concerned, the facility is to be extended to
such borrowers with a satisfactory track record.
ix) The branches shall follow up to satisfy themselves about the import of services. If
however, the imports do not fructify as per the agreed terms and conditions / time
lines, all efforts should be made to repatriate the funds in terms of the undertaking
furnished by the overseas beneficiary. In the event of the repatriation not being made
despite all efforts, the branch shall report the matter to the Regional Office
concerned of RBI after a reasonable time, viz 3 months after the agreed / extended
date for such import.
x) Remittances exceeding USD 500,000 or its equivalent shall be effected only
against a guarantee from a bank of international repute situated outside India or the
guarantee issued by an AD Category-I bank in India against the counter-guarantee
of a bank of international repute situated outside India, as per extant instructions of
RBI.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 24
18. Remittances against Replacement Imports
Where goods are short-supplied, damaged, short-landed or lost in transit and the
Exchange Control copy of the import licence has already been utilised to cover the
opening of a letter of credit against the original goods which have been lost, the
original endorsement to the extent of the value of the lost goods may be cancelled by
AD Category - I banks and fresh remittance for replacement imports permitted
without reference to Reserve Bank, provided the insurance claim relating to the lost
goods has been settled in favour of the importer. It may be ensured that the
consignment being replaced is shipped within the validity period of the licence.
a. The Exchange Control copy of the Bill of Entry for home consumption,
or
b. The Exchange Control copy of the Bill of Entry for warehousing, in case
of 100% Export Oriented Units
or
c. Customs Assessment Certificate or Postal Appraisal Form, as declared
by the importer to the Customs Authorities, where import has been
made by post, as evidence that the goods for which the payment was
made have actually been imported into India.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 25
Note: AD Category - I banks should advise importers to keep Customs
Authorities informed of the imports made by them under this clause.
iii. Imports on D/A basis: In respect of imports on D/A basis, AD Category - I
banks should insist on production of evidence of import at the time of effecting
remittance of import bill. However, if importers fail to produce documentary
evidence due to genuine reasons such as non-arrival of consignment, delay in
delivery/customs clearance of consignment, etc., AD Category - I banks may,
if satisfied with the genuiness of request, allow reasonable time, not
exceeding three months from the date of remittance, to the importer to submit
the evidence of import.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 26
vii. Certificate from CEO/Auditor of the company as evidence of import: AD
Category - I banks may accept either Exchange Control copy of Bill of Entry
for home consumption or a certificate from the Chief Executive Officer (CEO)
or auditor of the company that the goods for which remittance was made have
actually been imported into India provided :-
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 27
functioning, within 15 days from the close of the half-year to which the
statement relates.
In such cases while the KYC requirements are fulfilled, there is no credit
relationship which will enable the Bank to establish genuineness of
transaction on an ongoing basis. Therefore, for customers under this
category, a suitable self declaration, furnishing particulars like details of Bill of
Entry, purpose of import etc. may be obtained. This will adequately address
the issue of establishing the genuineness of the transaction.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 28
a) The rupee equivalent of the remittance should be invariably received
through normal banking channels like Crossed Cheques/Drafts/Pay
Orders etc.
b) In order to ascertain the genuineness of the transaction, Branches
should obtain declarations giving details of the import, like particulars of
Bill of Entry, purpose of import etc. as under:
i) If the value of import is upto USD 25000, self declaration from the
importer.
ii) Where the value of import falls between USD 25000 and USD
100,000 or its equivalent, Certificate from the Chartered Accountant of
the importer. The cut-off limit for self-declaration has been proposed
keeping in view the liberalization measures where remittances for all
eligible purposes for an amount upto USD 25000 or equivalent has
been permitted.
b) Imports made on DA basis or Imports in Non-Physical form:
The existing / prescribed procedure of follow-up, as laid down in Section VI, Para
8 of Codified FD Circulars updated as on the 30th June, 2005, which briefly are as
under, shall continue:
i) Imports made on DA (Delivery Against Acceptance)
Production of evidence of import at the time of effecting remittance of import
bill will be insisted upon. However, if the importer fails to produce
documentary evidence due to genuine reasons, reasonable time, not
exceeding three months from the date of remittance, will be allowed to the
importer to submit the evidence of import.
ii) Imports made on non-physical form i.e. in software or data through
internet and drawings and designs through email/ fax :
A certificate from a Chartered Accountant that the software / data / drawing /
design have been received by the importer shall be obtained.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 29
Reserve Bank. Hence, it has been liberalised that AD category I banks may, allow
BPO companies in India to make remittances towards the cost of equipment to be
imported and installed at their overseas sites in connection with the setting up of
their International Call Centres, subject to the following conditions:
a. The BPO company should have obtained necessary approval from the Ministry of
Communications and Information Technology, Government of India and other
authorities concerned for setting up of the International Call Centre.
b. The remittance should be allowed based on the AD Category – I banks’
commercial judgment, the bonafides of the transactions and strictly in terms of the
contract.
c. The remittance is made directly to the account of the overseas supplier.
d. The AD Category – I banks should also obtain a certificate as evidence of import
from the Chief Executive Officer (CEO) or auditor of the importer company that the
goods for which remittance was made have actually been imported and installed
at overseas sites.
i) AD Category – I banks may make remittances for imports, where the import bills /
documents have been received directly by the importer from the overseas
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 30
supplier and the value of import bill does not exceed USD 300,000, subject to the
following conditions :
a. The import would be subject to the prevailing Foreign Trade Policy.
b. The transactions are based on their commercial judgment and they are
satisfied about the bonafides of the transactions.
c. The importer is a customer of AD Category – I bank and the customer's
account is fully compliant with extant KYC / AML guidelines issued by the
Reserve Bank.
d. AD Category - I banks should do the due diligence exercise and should be
fully satisfied about the financial standing / status and track record of the
importer customer.
e. It is customary in that trade to receive import documents directly from the
overseas exporter.
f. In case the AD Category – I bank has suspicions about the genuineness of
the transaction, it should be reported through the Suspicious Transaction
Report (STR) to FIU_IND (Financial Intelligence Unit in India).
(A. P. (DIR Series) Circular No. 13 dated September 1, 2008)
iii). Import bills received by Status holder exporters as defined under the Foreign
Trade Policy, 100% Export Oriented Units / Units in Free Trade Zones, Public Sector
Undertakings and Limited Companies.
iv). Import bills received by all limited companies viz. public limited, deemed public
limited and private limited companies.
v). At the request of importer clients, AD Category - I banks may receive bills direct
from the overseas supplier as above, provided the AD Category - I bank is fully
satisfied about bonafides of the transaction and the financial standing/status and
track record of the importer customer. Before extending the facility, , AD Category - I
bank should obtain a credit report on each individual overseas supplier from the
overseas banker or reputed credit agency, where the invoice value exceeds USD
300,000. Credit report on the overseas supplier (where the import documents are
received directly) need not be obtained in cases where the invoice value does not
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 31
exceed USD 300,000, provided that the AD Category - I bank is satisfied about the
bonafides of the transaction and track record of the importer constituent.
The Gems and Jewellery Export Promotion Council (GJEPC) has represented that
the restrictions placed on non-status holder exporters for direct receipt of import bills
/ documents, where the value exceeds USD 100,000 adds to transaction costs for
small importers and have requested the Reserve Bank to consider relaxing this
condition for import of rough diamonds by non-status holders. It has, therefore, been
decided by RBI, as a sector specific measure, to enhance the limit for direct receipt
of import bills / documents from USD 100,000 to USD 300,000 in the case of
import of rough diamonds. Accordingly, AD Category - I banks are permitted to
allow remittance for imports up to USD 300,000 where the importer of rough
diamonds has received the import bills / documents directly from the overseas
supplier and the documentary evidence for import is submitted by the importer at the
time of remittance. AD Category - I banks may undertake such transactions subject
to the following conditions :
(i) The import would be subject to the prevailing Foreign Trade Policy.
(ii) The transactions are based on their commercial judgment and they are
satisfied about the bonafides of the transactions.
(iii) AD Category - I banks should do the KYC and due diligence exercise and
should be fully satisfied about the financial standing / status and track record
of the importer customer. Before extending the facility, they should also
obtain a report on each individual overseas supplier from the overseas banker
or reputed credit agency overseas.
Note: AD Category - I banks may make remittances towards import of books by post
parcel by book sellers / publishers against bills received for collection, irrespective of
the amounts involved, without prior approval of R.B.I. They may also make
remittances even if import licences covering the imports have been issued
subsequent to the date of import subject to endorsement on such import licences.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 33
The present instructions have been reviewed in the context of recent
developments and it has been decided by RBI that Suppliers’ and Buyers’
credit, including the usance period of Letters of Credit opened for import of
Platinum, Palladium, Rhodium and Silver should not exceed 90 days from the
date of shipment.
i. The import of gold should be strictly in accordance with the Foreign Trade
Policy.
ii. Suppliers’ and Buyers’ Credit, including the usance period of LCs opened for
direct import of gold, should not exceed 90 days.
iii. Banker's prudence should be strictly exercised for all transactions pertaining
to import of gold. AD Category - I banks should ensure that due diligence is
undertaken and all Know-Your-Customer (KYC) norms and the Anti-Money-
Laundering guidelines, issued by R.B.I, are adhered to while undertaking such
transactions. Any large or abnormal increase in the volume of business of the
importer should be closely examined to ensure that the transactions are
bonafide trade transactions.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 34
iv. AD Category - I banks should closely monitor such transactions in addition to
carrying out the normal due diligence exercise. The credentials of the supplier
should also be ascertained before opening of LCs. The financial standing, line
of business and the net worth of the importer customer should be
commensurate with the volume of business turnover. Apart from the above, in
case of such transactions banks should also make discreet enquiries from
other banks to assess the actual position. Further, in order to establish audit
trail of import/export transactions, all documents pertaining to such
transactions must be preserved for at least five years.
(ii). The maximum tenor of gold loan would be as per the Foreign Trade
Policy in force, or as notified by the Government of India from time to time in
this regard. The same is 240 days at present, as per the Foreign Trade Policy
and Public Notice No.28/ 2004-09 dated December 1, 2004.
(iii). AD Category - I banks may open Standby Letters of Credit (SBLC), for
import of gold on loan basis, where ever required, as per FEDAI guidelines
dated April 1, 2003. The tenor of the SBLC should be in line with the tenor of
the gold loan. It may be noted that the SBLC can be opened only on behalf of
entities permitted to import gold on loan basis, viz. nominated agencies and
100% EOUs/units in SEZ, which are in the Gem and Jewellery sector.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 35
Further, the SBLC should be in favour of internationally renowned bullion
banks only. AD Category - I banks can obtain a detailed list of internationally
renowned bullion banks from the Gem & Jewellery Export Promotion Council.
All other existing instructions on import of gold and opening of Letters of
Credit, with usance period not exceeding 90 days, will continue to be
applicable.
c. all rules, regulations and directions applicable to export out of India (except
Export Declaration Form) are complied with in respect of the export leg and all
rules, regulations and directions applicable to import (except Bill of Entry) are
complied with in respect of the import leg of merchanting trade transactions.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 36
AD Category - I banks are also required to ensure timely receipt of payment
for the export leg of such transactions.
AD Category - I banks may note that short-term credit either by way of suppliers'
credit or buyers' credit is not available for merchanting trade or intermediary trade
transactions. While undertaking bonafide merchanting trade transactions on behalf
of their trader clients, AD Category - I banks should ensure that the terms of
payment for the import leg and the export leg of the transactions are such that:
i. the liability for the import leg of the transaction is extinguished by the payment
received for the export leg of the transaction, without any delay; and
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 37
PART II - EXPORT OF GOODS AND SERVICES
1. General
i. Trade and Foreign Exchange Regulations
Any reference to Reserve Bank should be made to the regional office of the
Foreign Exchange Department situated in the jurisdiction where the applicant
person, firm or company resides or functions, unless otherwise indicated. If for
any particular reason, a firm or company desires to deal with a different office of
the Foreign Exchange Department, it may approach the regional office of its
jurisdiction for necessary approval.
c) Ship’s stores, trans-shipment cargo and goods supplied under the orders of
Central Government or of such officers as may be appointed by the Central
Government in this behalf or of the military, naval or air force authorities in
India for military, naval or air force requirements;
f) Aircrafts or aircraft engines and spare parts for overhauling and/or repairs
abroad subject to their re-import into India after overhauling /repairs, within a
period of six months from the date of their export;
h) Goods not exceeding U.S.$ 1000 or its equivalent in value per transaction
exported to Myanmar under the Barter Trade Agreement between the Central
Government and the Government of Myanmar;
Goods listed at items (i), (ii) and (iii) of clause ( i ) to be re-exported by units in
Special Economic Zones, under intimation to the Development Commissioner
of Special Economic Zones/concerned Assistant Commissioner or Deputy
Commissioner of Customs;
k) Goods sent outside India for testing subject to re-import into India;
l) Defective goods sent outside India for repair and re-import provided the goods
are accompanied by a certificate from an Authorised Dealer in India that the
export is for repair and re-import and that the export does not involve any
transaction in foreign exchange;
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 39
(ii) Exports permitted by the Reserve Bank, on application made to it, subject to the
terms and conditions, if any, as stipulated in the permission.
(iii) Gift of goods exceeding Rupees Five lakhs in value requires approval of the
Reserve Bank.
(iv) 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 percent of the
average annual exports of the applicant during the preceding three 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 percent of the average annual export realisation
during the preceding three licensing years (Apr-March), whichever is higher.
(v) Export of goods not involving any foreign exchange transaction directly or
indirectly requires the waiver of GR/PP procedure from the Reserve Bank.
(vi) The importer-exporter code number allotted by the Director General of Foreign
Trade under Section 7 of the Foreign Trade (Development & Regulation) Act, 1992
(22 of 1992) shall be indicated on all copies of the declaration forms submitted by the
exporter to the specified authority and in all correspondence of the exporter with the
AD Category - I bank or the Reserve Bank, as the case may be
It is clarified that in cases where the goods being exported for testing are destroyed
during testing, AD Category - I banks may obtain a certificate issued by the testing
agency that the goods have been destroyed during testing, in lieu of Bill of Entry for
import.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 40
4. Numbering of Forms
GR, PP and SOFTEX forms will bear specific identification numbers. In all
applications/ correspondence with the Reserve Bank, this identification number
should invariably be cited. In the case of declarations made on SDF form, the port
code number and shipping bill number should be cited.
5. Manner of Payment
(i) The amount representing the full export value of the goods exported shall be
received through an AD Category - I bank in the manner specified in the Foreign
Exchange Management (Manner of Receipt & Payment) Regulations, 2000 notified
vide Notification No. FEMA 14/2000-RB dated May 3, 2000. Re-import into India,
within the period specified for realisation of the export value, is deemed to be
realisation of full export value of such goods.
(ii) Payment for export may also be received by the exporter in the following manner:
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 41
e. All transactions between a person resident in India and a person resident
in Nepal may be settled in Indian Rupees. However, in case of export of
goods to Nepal, where the importer has been permitted by the Nepal
Rashtra Bank to make payment in free foreign exchange, such payments
shall be routed through the ACU mechanism.
f. Precious metals i.e. Gold / Silver / Platinum by the Gem & Jewellery units
in SEZs and EOUs in equivalent to value of jewellery exported on the
condition that the sale contract provides for the same and the approximate
value of the precious metals is indicated in the relevant GR / SDF / PP
Forms.
AD Category - I banks may permit units in Domestic Tariff Areas (DTA) to purchase foreign
exchange for making payment for goods supplied to them by units in Special Economic
Zones (SEZ).
AD Category - I banks should obtain prior approval of the Reserve Bank for issuing
guarantees for caution-listed exporters.
(a) Reserve Bank may consider applications in Form EFC from exporters having
good track record for opening foreign currency accounts with banks subject to
certain terms and conditions. Applications for opening such an account with a
branch of an AD Category - I bank in India may be submitted through the branch
at which the foreign currency account is to be maintained. If the foreign currency
account is to be maintained abroad the application should be made by the
exporter giving details of the bank with which the account will be maintained.
(b) An Indian entity has also been permitted to open, hold and maintain in the
name of its office/branch set up outside India, a foreign currency account with a
bank outside by making remittance for the purpose of normal business operations
of the said office/branch or representative subject to conditions stipulated in
Notification No. FEMA 47/2001-RB dated December 5, 2001. The AD Category -
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 42
I banks may therefore allow remittances for the purpose of normal business
operations of the office (trading/non-trading)/ branch or representative outside
India as per the provisions of the Regulations in this regard subject to the
following terms and conditions:
iv) The details of bank accounts opened in the overseas country should be
promptly reported to the Authorised Dealer.
(c) A unit located in a Special Economic Zone (SEZ) may be allowed to open,
hold and maintain a Foreign Currency Account with an AD Category - I bank in
India subject to certain specified conditions.
(d) 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.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 43
jewellery, and having an average annual turnover of Rs. 5 crores or above during the
preceding three licensing years (licensing year is from April to March) are permitted
to transact their business through Diamond Dollar Accounts and may be allowed to
open not more than five Diamond Dollar Accounts with their banks.
With a view to liberalising the procedure, it has been decided by RBI to delegate powers
to AD Category – I banks to permit such firms and companies to open and maintain DDA
with AD Category – I banks, subject to the following terms and conditions:
a. The exporter should comply with the eligibility criteria stipulated in the Foreign
Trade Policy of the Government of India, issued from time to time.
b. The DDA shall be opened in the name of the exporter and maintained in US
Dollars only.
c. The account shall only be in the form of current account and no interest should
be paid on the balance held in the account.
d. No intra-account transfer should be allowed between the DDAs maintained by
the account holder.
e. An exporter firm / company shall be permitted to open and maintain not more
than 5 DDAs.
f. The balances held in the accounts shall be subject to Cash Reserve Ratio
(CRR) and Statutory Liquidity Ratio (SLR) requirements.
g. Exporter firms and companies maintaining foreign currency accounts,
excluding EEFC accounts, with banks in India or abroad, are not eligible to open
Diamond Dollar accounts.
h. The transactions in the DDA would be as under:
Permissible Credits
• Amount of pre-shipment and post-shipment finance availed in US Dollars .
• Realisation of export proceeds from shipments of rough, cut, polished diamonds
and diamond studded jewellery.
• Realisation in US Dollars from local sale of rough, cut and polished diamonds.
Permissible Debits
• Payment for import / purchase of rough diamonds from overseas / local
sources.
• Payment for purchase of cut and polished diamonds, coloured gemstones and
plain gold jewellery from local sources.
• Payment for import/purchase of gold from overseas / nominated agencies and
repayment of USD loans availed from the bank.
• Transfer to rupee account of the exporter.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 44
The above transactions are subject to the provisions of the Foreign Trade Policy of
Government of India, issued from time to time.
The exporter firm / company shall make an application in the format annexed to the AD
Category – I bank for opening of the DDA. AD Category - I banks should assess the
track record of the firm / company at the end of every licensing year (April-March). In
case any firm / company fails to meet the eligibility criteria, the account may be closed
immediately.
(A. P. (DIR Series) Circular No. 51 dated February 13, 2009)
A person resident in India may open, hold and maintain with an AD Category - I
bank in India, a foreign currency account to be known as the Exchange Earners’
Foreign Currency (EEFC) Account. EEFC accounts were hitherto permitted to be
maintained in the form of non-interest bearing current accounts. As per A.P. (DIR
Series) Circular No 13 dated October 6, 2007, it was possible for account holders
to maintain outstanding balances to the extent of US $ 1 million in the form of term
deposits up to one year, at a rate of interest determined by the banks themselves,
maturing on or before 31st October 2008. . The measure of interest payment on
EEFC accounts has since been reviewed in consultation with the Government of
India and it has been decided by RBI to withdraw the facility from November 01,
2008. With effect from November 01, 2008, all EEFC accounts shall only be
permitted to be opened and maintained in the form of non-interest bearing current
accounts. (A. P. (DIR Series) Circular No. 04 dated August 4, 2008)
The limits of eligible credits to the EEFC accounts are 100 per cent all categories of
exporters, Viz.,
a) Status Holder Exporter (as defined in Foreign Trade Policy in force);
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 45
f) Electronic Hardware Technology Parks (EHTPs).
The eligible credits represent inward remittance received through normal banking
channel, other than the remittance received pursuant to any undertaking given to
the Reserve Bank or which represents foreign currency loan raised or investment
received from outside India or those received for meeting specific obligations by
the account holder.
Payments received in foreign exchange by a unit in Domestic Tariff Area (DTA) for
supplying goods to a unit in Special Economic Zone out of its foreign currency a/c.
are to be treated as eligible foreign exchange earnings for the purpose of credit to
the EEFC A/c
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 46
c. Repatriation of contract value by overseas office of software export
company:
In addition to the above, 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.
It may utilize the entire amount of the contract value of ‘on-site’ contracts for contract
related expenses including office/branch expenses abroad but at least repatriate the
profits of ‘on-site’ contract after the completion of the said contract. A duly 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 bank.
ii) Application for permission for opening 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 Bank.
Export of machinery, equipment, etc., on lease, hire, etc., basis under agreement
with the overseas lessee against collection of lease rentals/hire charges and ultimate
re-import require prior approval of the Reserve Bank. Exporters should apply for
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 47
necessary permission, through an AD Category - I bank, to the concerned regional
office concerned of the Reserve Bank, giving full particulars of the goods to be
exported.
(b) 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.
(d) 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;
i. The exporter shall produce relative Bill of Entry within one month of re-
import into India of the unsold items.
ii. 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.
iii. The exporter shall report to the AD Category - I bank the method of
disposal of all items exported, as well as the repatriation of proceeds to
India.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 48
India within a period of one month from the date of closure of the
exhibition/trade fair and full details are submitted to the AD Category - I bank
concerned.
b) Pure supply contacts (contracts for export of goods) where at least 90 percent
of the export value is realised within the prescribed period i.e., six months from
the date of export and the balance amount within a maximum period of two years
from the date of export are not treated as deferred payment exports, provided the
exporter does not require / avail of any funded or non-funded facilities for such
exports from AD Category - I banks.
Exporters intending to export goods on elongated credit terms may submit their
proposals giving full particulars through their banks for consideration to the Regional
Office concerned of the Reserve Bank.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 49
exporters may show the value of the unsold books as deduction from the export
proceeds in the Account Sales.
b. Job Works abroad: Units in SEZs are permitted to undertake job work
abroad and export goods from that country itself subject to the conditions that:
ii. The exporter has made satisfactory arrangements for realisation of full
export proceeds subject to the usual GR procedure.
iii) Both transactions of sale and purchase in ‘R’ Returns under FET-ERS
are reported separately.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 50
iv) The export/import transactions with ACU countries are kept outside the
arrangement.
e) Issue of equity shares against import of capital goods: Units in SEZs are
permitted to issue equity shares to non-residents against import of capital
goods subject to the following:
ii) The SEZ units issuing equity in the above manner should report the
particulars of the shared issued in the form ‘FC-GPR’, to the concerned
Regional Office under whose jurisdiction the SEZ falls, together with the
copy of the valuation certificate. A copy of the report may be forwarded to
Department of Industrial Policy and Promotion (DIPP), Ministry of
Commerce and Industry, Government of India.
16. Forfaiting
Export-Import Bank of India (Exim Bank) and AD Category - I banks have been
permitted to undertake forfaiting, for financing of export receivables. It would be in
order for the AD Category - I banks to allow remittance of commitment fee/service
charges, etc., payable by the exporter as approved by the Exim Bank/the AD
Category - I bank concerned. Such remittance may be permitted in advance in one
lump sum or at monthly intervals as approved by the agency concerned.
(a) GR forms should be completed by the exporter in duplicate and both the
copies submitted to the Customs at the port of shipment along with the shipping
bill. Customs will give their running serial number on both the copies after
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 51
admitting the corresponding shipping bill. The Customs serial number will have
ten numerals denoting the code number of the port of shipment, the calendar
year and a six- digit running serial number. 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 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 bank
for negotiation or collection of export bills.
(b) Within twenty-one 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 bank named in the GR form. After the documents
have been negotiated / sent for collection, the AD Category - I bank should report
the transaction to Reserve Bank in statement ENC under cover of appropriate R-
Supplementary Return. However, the duplicate copy of the form together with a
copy of invoice etc. will henceforth be retained by the AD Category - I bank and
may not be submitted to Reserve Bank.
Note: (i) In the case of exports made under deferred credit arrangement or to
joint ventures abroad against equity participation or under rupee credit
agreement, the number and date of Reserve Bank approval and/or number
and date of the relative RBI circular should be recorded at the appropriate
place on the GR form.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 52
Commissioner of Customs will hand over to the exporter, one copy of the
shipping bill marked ‘Exchange Control Copy’ in which form SDF has been
appended for being submitted to the AD Category - I bank within 21 days from
the date of export. The AD Category - I bank should accept the Exchange Control
(EC) copy of the shipping bill and form SDF appended thereto, submitted by the
exporter for collection/negotiation of shipping documents. The manner of disposal
of EC copy of shipping Bill (and form SDF appended thereto) is the same as that
for GR forms.
(d) In cases where ECGC initially settles the claims of exporters in respect of
exports insured with them and subsequently receives the export proceeds from
the buyer/buyer’s country through the efforts made by them, the share of
exporters in the amount so received is disbursed through the bank which had
handled the shipping documents. In such cases, ECGC will issue a certificate to
the bank 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 exporter, name of the AD Category - I bank, date of negotiation, bill
number, invoice value and the amount actually received by ECGC.
(e) The AD Category - I bank should ensure by random check of the relevant
duplicate forms by their internal / concurrent auditors to confirm that non-
realisation or short realisation allowed, if any, is within the powers delegated to
them or has been duly approved by Reserve Bank, wherever necessary.
(f) Where a part of the export proceeds are credited to an EEFC account, the
export declaration (duplicate) form may be certified as under:
(ii) The manner of disposal of PP forms is the same as that for GR forms. Postal
Authorities will allow export of goods by post only if the original copy of the form has
been countersigned by an AD Category - I bank. Therefore, PP forms should be first
presented by the exporter to an AD Category - I bank for countersignature. The AD
Category - I bank will countersign the forms in accordance with the directions in
paragraph B.2 and return the original copy to the exporter, who should submit the
form to the post office with the parcel. The duplicate copy of the PP form will be
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 53
retained by the AD Category - I bank to whom the exporter should submit relevant
documents together with an extra copy of invoice for negotiation/collection, within the
prescribed period of twenty-one days.
a. 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
bank concerned
Or
The full value of the shipment has been received in advance by the exporter
through an AD Category - I bank
Or
b. The AD Category - I bank is satisfied, on the basis of the standing and track
record of the exporter and the arrangements made for realisation of the export
proceeds, that he could do so.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 54
combined SOFTEX form for all the invoices raised on a particular overseas client,
including advance remittances received in a month.
(ii) In respect of contracts involving only ‘one shot operation’, the invoice/bill should
be raised within 15 days from the date of transmission.
(iii) The exporter should submit declaration in Form SOFTEX in triplicate in respect
of export of computer software and audio / video / television software to the
designated official concerned of the Government of India at STPI / EPZ /FTZ /SEZ
for valuation / certification not later than 30 days from the date of invoice / the date of
last invoice raised in a month, as indicated above. The designated officials may also
certify the SOFTEX Forms of EOUs which are registered with them.
(iv) The invoices raised on overseas clients as at (i) to (iii) above will be subject to
valuation of export declared on SOFTEX form by the designated official concerned of
the Government of India and consequent amendment made in the invoice value, if
necessary.
Note:
(i) In all the above procedures AD Category - I bank banks should ensure, by
random check of the relevant duplicate forms by their internal / concurrent
auditors, that non-realisation or short realisation allowed, if any, is within the
powers delegated to them or has been duly approved by Reserve Bank,
wherever necessary.
(ii) Where a part of the export proceeds are credited to an EEFC account, the
export declaration (duplicate) form may be certified as under:
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 55
(i) When part of a shipment covered by a GR form already filed with Customs is
short-shipped, the exporter must give notice of short-shipment to the Customs in the
form and manner prescribed. In case of delay in obtaining certified short-shipment
notice from the Customs, the exporter should give an undertaking to the AD
Category - I bank to the effect that he has filed the short-shipment notice with the
Customs and that he will furnish it as soon as it is obtained.
(ii) Where a shipment has been entirely shut out and there is delay in making
arrangements to re-ship, the exporter will give notice in duplicate to the Customs in
the form and manner prescribed, attaching thereto the unused duplicate copy of GR
form and the shipping bill. The Customs will verify that the shipment was actually
shut out, certify the copy of the notice as correct and forward it to the Reserve Bank
together with unused duplicate copy of the GR form. In this case, the original GR
form received earlier from Customs will be cancelled. If the shipment is made
subsequently, a fresh set of GR form should be completed.
Where air cargo is shipped under consolidation, the airline company’s Master Airway
Bill will be issued to the Consolidating Cargo Agent who will in turn 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.
AD Category - I banks may also accept Forwarder’s Cargo Receipts (FCR) issued by
steamship companies or their agents (instead of 'IATA' approved agents), in lieu of
bills of lading, for negotiation / collection of shipping documents, of export
transactions backed by letters of credit, only if the relative letter of credit specifically
provides for negotiation of this document, in lieu of bill of lading. Further, relative sale
contract with the overseas buyer should also provide that FCR may be accepted in
lieu of bill of lading as a shipping document.
i) Under the Border Trade Agreement between India and Myanmar, imports
from Myanmar into India should precede exports from India to Myanmar.
ii) The barter trade shall be restricted to land route as per the Border Trade
Agreement between the two countries. Such barter trade transactions shall
take place only by way of head load or non-motorised transport system.
iii) Imports from Myanmar to India shall precede export from India to Myanmar.
iv) The border trade will be restricted to items agreed to as per Border Trade
Agreement with Myanmar.
v) There will be no monetary transaction under the barter trade trade agreement.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 57
vii) The value of goods exported under barter trade should not exceed USD
20,000 per transaction.
viii) Exports from India to Myanmar under barter trade of the value not
exceeding USD 1000 per transaction are exempt from declaration on the
prescribed form viz. GR form. However, such transactions should be
completed in one or two days. Customs authorities at the Indo-Myanmar
border will report import/export transactions of value not exceeding USD 1000
to the Foreign Exchange Department, R.B.I., Guwahati on monthly basis.
ix) On import of goods the party should submit documentary evidence such as
Bill of Entry to the designated bank, where the value exceeds USD 5000.
xi) The exporters should approach the designated branches as per (x) above,
along with a copy of the contract for import and export with Myanmar parties,
for countersignature on GR forms before submitting them to Customs
authorities. The bank branches will countersign GR forms original and
duplicate, submitted to them by the exporters, after satisfying themselves that
the GR forms are supported by a Bill of Entry for import of goods from
Myanmar to India. Both original and duplicate copies of the forms should be
returned to the exporter which may be superscribed as under:
“Exports under barter arrangement with Myanmar. The payments have been
received in the form of goods/commodities of the equivalent value”
xii) The designated banks should maintain a record of the transactions under the
barter trade arrangement on the basis of GR forms countersigned by them, in
a register. They should also submit a monthly statement to Foreign Exchange
Department, RBI, Guwahati, within 15 days from the close of the month.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 58
should surrender the duplicate copy of GR form and evidence of import to the
Foreign Exchange Department, RBI, Guwahati, along with monthly statement.
AD Category - I bank Category – I Banks may ensure the following while accepting
the export declaration forms (GR/SDF):
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 59
Notes :
A. Differences in Value due to Freight : The export realisable 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 concluded is agreed to be borne by buyers or where as a result of
subsequent devaluation of the currency of the contract, buyers have agreed to
an increase in price.
a) Where the value declared in the declaration does not differ from the
value shown in the documents being negotiated or sent for collection, or
b) Where the value declared in the declaration is less than the value
shown in the documents being negotiated or sent for collection,
require the constituent concerned also to sign such declaration and thereupon
such constituent shall be bound to comply with such requisition and such
constituent signing the declaration shall be considered to be the exporter for
the purposes of these Regulations to the extent of the full value shown in the
documents being negotiated or sent for collection and shall be governed by
these Regulations..
As these variations stem from the terms of contract, AD Category - I banks may
accept them on production of documentary evidence after verifying the arithmetical
accuracy of the calculations and on conforming the terms of underlying contracts.
Bills for exports by sea or air which fall short of the value declared on GR/SDF forms
on account of trade discount may be accepted for negotiation or collection only if the
discount has been declared by the exporter on relative GR/SDF form at the time of
shipment and accepted by Customs.
Exporters may receive advance payments (with or without interest) from their
overseas buyers. It should, however, be ensured that the shipments made against
the advance payments are monitored by the AD Category - I bank through whom the
advance payment is received. The appropriations made against every shipment
must be endorsed on the original copy of the inward remittance certificate issued for
advance remittance.
Note: Purchase of foreign exchange from the market for refunding advance payment
credited to EEFC account may be allowed only after utilising the entire balances held
in the exporter’s EEFC accounts maintained at different branches/banks.
Exporter receiving advance payment (with or without interest), from a buyer outside
India, shall be under an obligation to ensure that –
(1). the shipment of goods is made within one year from the date of receipt of
advance payment;
(2). the rate of interest, if any, payable on the advance payment does not
exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points, and
(3). the documents covering the shipment are routed through the AD Category
- I bank through whom the advance payment is received;
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 61
In the event of the exporter's inability to make the shipment, partly or fully, within one
year from the date of receipt of advance payment, no remittance towards refund of
unutilised portion of advance payment or towards payment of interest, shall be made
after the expiry of the said period of one year, without the prior approval of the
Reserve Bank.
Notwithstanding anything contained in clause (1) above, where the export agreement
provides for shipment of goods extending beyond the period of one year from the
date of receipt of advance payment, the exporter shall require the prior approval of
the Reserve Bank.
In certain lines of export trade, it is the practice to leave a small part of the invoice
value undrawn for payment after adjustment due to differences in weight, quality, etc.
to be ascertained after arrival for inspection, or analysis of the goods. In such cases,
AD Category - I banks may negotiate the bills, provided:
Note: In cases where the exporter has not been able to arrange for repatriation of
the undrawn balance in spite of best efforts, AD Category - I banks, on being
satisfied with the bona fides of the case, should ensure that the exporter has realised
at least the value for which the bill was initially drawn (excluding undrawn balances)
or 90% of the value declared on GR/PP/SDF form, whichever is more and a period
of one year has elapsed from the date of shipment.
(i) When goods have been exported on consignment basis, AD Category - I bank,
while forwarding shipping documents to his overseas branch/correspondent, should
instruct the latter to deliver them only against trust receipt/undertaking to deliver sale
proceeds by a specified date within the period prescribed for realisation of proceeds
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 62
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 bank. 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.
Notes:
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 63
The above permissions may be granted to the exporters initially for a period of
one year and their renewals may be considered subject to the applicant
satisfying the requirement at (a) above. AD Category - I banks granting such
permission / approvals should maintain a proper record of the approvals
granted.
(a) Where advance payment has been received for the full value of the
export shipment and the underlying sale contract provides for despatch of
documents direct to the consignee or his agent resident in the country of final
destination of goods. Or
(b) Where an irrevocable letter of credit has been received for the full value
of the export shipment and the underlying letter of credit provides for despatch
of documents direct to the consignee or his agent resident in the country of
final destination of goods.
(ii) In cases not covered by (i) above also, AD Category - I banks may accede to the
request of the exporter, for despatch of documents for whatever reason, direct to the
consignee / agent provided the exporter is a regular customer and the AD Category -
I bank is satisfied, on the basis of standing and track record of the exporter and the
arrangements made for realisation of export proceeds, that the request can be
acceded to.
(v) AD Category - I banks may permit `Status Holder Exporters' (as defined in the
Foreign Trade Policy), and units in Special Economic Zones (SEZ) to despatch the
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 64
export documents to the consignees outside India subject to the terms and
conditions that:
(vi) With view to further liberalise the facilities available to the exporters and to
simplify the procedure, it has been decided by RBI to allow AD Category - I banks, to
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 realized 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
Reserve Bank’s extant KYC / AML guidelines.
d) The AD Category – I bank is satisfied about the bonafides of the transaction.
e) In case of doubt, the AD Category – I bank may consider filing Suspicious
Transaction Report (STR) with FIU_IND (Financial Intelligence Unit in India).
(A. P. (DIR Series) Circular No. 06 dated August 13, 2008)
AD Category - I banks may deliver one negotiable copy of the Bill of Lading to the
Master of the carrying vessel or trade representative for exports to certain landlocked
countries if the shipment is covered by an irrevocable letter of credit and the
documents conform strictly to the terms of the Letter of Credit which, inter alia,
provides for such delivery.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 65
i. AD Category - I banks should maintain Export Bills Register, in physical or
electronic form. Details of GR/SDF/PP form number, due date of payment,
the fortnightly period of R Supplementary Return with which the ENC
statement covering the transaction was sent to R.B.I, should be available.
ii. AD Category - I banks should ensure that all types of export transactions are
entered in the Export Bills Register and are given bill numbers on calendar
year basis (i.e. January to December). The bill numbers should be recorded in
ENC statement and other relevant returns submitted to Reserve Bank.
Reserve Bank has been receiving representations from Exporters / Trade bodies
to extend the period of realisation of export proceeds in view of the external
environment. It has, therefore, been, in consultation with Government of India,
announced in the Annual Policy Statement for the Year 2008-09 (para 134) to
enhance the present period of realization and repatriation to India of the amount
representing the full export value of goods or software exported, from six
months to twelve months from the date of export, subject to review after one
year. The provisions in regard to period of realization and repatriation to India of
the full export value of goods or software exported by a unit situated in Special
Economic Zone (SEZ) as well as exports made to warehouses established
outside India with the permission of Reserve Bank remain unchanged.
(A. P. (DIR Series) Circular No. 50 dated 03.06.2008)
(i) AD Category - I banks should closely watch realisation of bills and in cases
where bills remain outstanding, beyond the due date for payment or twelve
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 twelve months or seek extension of time beyond twelve
months the matter should be reported to Reserve Bank stating, where
possible, the reason for the delay in realising the proceeds. The duplicate
copies of GR / SDF / PP Forms should, however, continue to be held by AD
Category - I bank until the full proceeds are realised, except in case of
undrawn balances covered by Note under paragraph 27.
(ii) 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 realisation of export proceeds by
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 66
AD Category - I banks will be viewed seriously by R.B.I. leading to the
invocation of the penal provisions under FEMA 1999.
(iii) Exporters who have been certified as `Status Holder' in terms of Foreign
Trade Policy are permitted to realise and repatriate the full value of export
proceeds within a period of 12 months from the date of shipment.
(iv) 100% Export Oriented Units (EOUs) and units set up under Electronic
Hardware Technology Parks (EHTPs), Software Technology Parks (STPs)
and Bio–Technology Parks (BTPs) Schemes are permitted to realise and
repatriate the full value of export proceeds within a period of 12 months from
the date of export in respect of export made on or after September 1, 2004.
(v) The stipulation of twelve months or extended period thereof for realisation of
export proceeds is no longer applicable for units located in Special Economic
Zones (SEZs). The units in SEZs will however continue to follow the GR/ PP /
SOFTEX export procedure outlined in this Handbook.
If, after a bill has been negotiated or sent for collection, its amount thereof is desired
to be reduced for any reason, AD Category - I bank may approve such reduction, if
satisfied about genuineness of the request, provided:
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 67
b. It does not relate to export of commodities subject to floor price stipulations,
c. The exporter is not on the exporters’ caution list of Reserve Bank, and
In the case of exporters who have been in the export business for more than three
years, reduction in invoice value may be allowed, without any percentage ceiling,
subject to the above conditions as also subject to their track record being
satisfactory, i.e., the export outstandings do not exceed 5% of the average annual
export realisation during the preceding three calendar years. For the purpose of
reckoning the percentage of export bills outstanding to the average export
realisations during the preceding three calendar years, outstanding of exports made
to countries facing externalisation problems may be ignored provided the payments
have been made by the buyers in the local currency.
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 Reserve Bank. In all such cases of remittances, the
exporter should be advised to surrender proportionate export incentive, if any,
received by him.
Prior approval of 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
10% and the realisation of export proceeds is not delayed beyond the period of six
months from the date of export. Where the reduction in value exceeds 10%, all other
relevant conditions stipulated in paragraph 34 should also be satisfied.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 68
(a) Write off (including reduction in invoice value) outstanding export dues and,
(b) Extend the prescribed period of realisation beyond 180 days or further period as
applicable, provided the aggregate value of such export bills written-off
(including reduction in invoice value) and bills extended for realisation does
not exceed 10 per cent of the export proceeds due during the calendar year
and such export bills are not a subject of investigation by Enforcement Directorate /
Central Bureau of Investigation or any other Investigating Agencies.
(c) Exporters dealing with more than one AD Category - I bank can avail of this
facility through each AD, i.e., the limit of 10 per cent for self write-off (including
reduction 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 - I
bank. However, exporters operating under a consortium of banks or with multiple
banks will also have the option of computing the 10 per cent limit on an aggregate
basis with all the banks, provided the lead bank of the consortium or in case of
multiple banking, a nodal bank, undertakes to verify the exporters’ annual
performance on behalf of all the banks.
(d) Within a month from the close of the calendar year, exporters should submit a
statement as per prescribed format, giving details of export proceeds due, realised
and not realised to the AD Category - I bank concerned. Export bills due in the year
for which the exporter has extended the period of realisation on his own (within the
10 per cent limit) or sought extension of time from the AD Category - I bank but
unrealised as at the end of calendar year will be computed for export proceeds due
in the following year. The AD Category - I bank will be required to verify the
statement with his records and review the export performance of the exporter during
the calendar year to ascertain that in cases where the 10 per cent limit of self
extension, write-off (including reduction in invoice value) and non-realisation has
been breached, the exporter has sought necessary approval for write-off, reduction
in invoice value or extension of time, as the case may be, for the excess over the 10
per cent limit before the end of the calendar year.
(e) 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-realisation in excess of the
10 per cent limit, failing which, the AD Category - I banks may inform the exporter
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 69
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.
(ii) Reserve Bank of India has permitted the AD Category - I banks to extend the
period of realisation of export proceeds beyond 6 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 :
a. The AD Category - I bank is satisfied that the exporter has not been
able to realise export proceeds for reasons beyond his control.
d. While considering extension beyond one year from the date of export,
the total outstanding of the exporter does not exceed USD one million
or 10 per cent of the average export realisations during the preceding
three financial years, whichever is higher,
f. In cases where the exporter has filed suits abroad against the buyer,
extension may be granted irrespective of the amount involved /
outstanding.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 70
g. Cases which are not covered by the above instructions would require
prior approval from the Regional Office of the Reserve Bank.
In cases where the claim is payable abroad, the AD Category - I bank must arrange
to collect the full amount of claim due on the lost shipment, through the medium of
his overseas branch/correspondent and release the duplicate copy of GR/SDF/PP
form only after the amount has been collected. A certificate for the amount of claim
received should be furnished on the reverse of the duplicate copy.
Note: Sometimes claims on shipments lost in transit are also partially settled directly
by shipping companies/airlines under carrier’s liability. AD Category - I banks should
ensure that amounts of such claims if settled abroad are also repatriated to India by
exporters.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 71
It is clarified that the claims settled in rupees by ECGC / insurance companies
should not be construed as export realisation in foreign exchange.
(A.P. (DIR Series) Circular No. 49 dated June 03, 2008)
a. The relevant amount has remained outstanding for one year or more;
i. 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 produced.
ii. The overseas buyer is not traceable over a reasonably long period of time.
iv. The unrealised amount represents the balance due in a case settled
through the intervention of the Indian Embassy, Foreign Chamber of
Commerce or similar Organisation.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 72
vi. The cost of resorting to legal action would be disproportionate to the
unrealised amount of the export bill or where the exporter even after
winning the Court case against the overseas buyer could not execute the
Court decree due to reasons beyond his control.
vii. Bills were drawn for the difference between the letter of credit value and
actual export value or between the provisional and the actual freight
charges but the amount has remained unrealised consequent on
dishonour of the bills by the overseas buyer and there are no prospects of
realisation.
viii. The case is not the subject matter of any pending civil or criminal suit.
ix. The exporter has not come to the adverse notice of the Enforcement
Directorate or the Central Bureau of Investigation or any such other law
enforcement agency.
(ii) Where there is no further amount to be realised against the GR/SDF/PP form
covered by the write off, AD Category - I bank should certify the duplicate form as
under:
"Write off of...........……… (Amount in words and figures) permitted in terms
of paragraph C.18 of Directions to Authorised Dealers."
Stamp & Signature of
Date ………………………….. Authorised Dealer
(iii) Status holders exporters (viz. Export Houses, Trading Houses, Star Trading
Houses, Superstar Trading Houses) and manufacturer exporters exporting more
than 50% of their production, and recognised as such by DGFT, may be permitted to
"write off" outstanding export bills up to extent of (i) 5 per cent of their average
annual realisation during the preceding three financial years or (ii) 10 per cent of the
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 73
export proceeds due during the financial year, whichever is higher. The limit will be
cumulatively available in a year and subject to the following conditions.
a. the export realisation in the preceding three calendar years and also the
amount of "write off " already availed of during the year, if any.
b. the relevant GR/SDF Nos. to be written off, Bill No., invoice value,
commodity exported, country of export,
2. It is clarified that the following do not qualify for the "write off" facility:
3. After the "write off" has been permitted Authorised Dealer may certify the
duplicate form as under:-
4. AD Category - I banks may note to take into account the amount written off
under this facility while arriving at the eligible amount.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 74
5. AD Category - I banks may forward a statement in form EBW to the
Regional Office of Reserve Bank under whose jurisdiction they are
functioning, indicating details of write offs etc.
The duplicate copies of GR/SDF/PP forms and shipping documents, once submitted
to the AD Category - I banks for negotiation, collection, etc., should not ordinarily be
returned to exporters, except for rectification of errors and resubmission.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 75
(ii) AD Category - I banks may allow payment of commission by Indian exporters, in
respect of their exports covered under counter trade arrangement through Escrow
Accounts designated in U.S.Dollar, subject to the following conditions:
c. The commission should not be allowed by deduction from the invoice value.
Annex-1
BEF
(Statement showing the details of remittances effected towards import in respect of
which documentary evidence has not been received despite reminders)
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 76
Name and address of AD branch…………………….
Name of Controlling Office of AD branch ……………..
Statement for the half-year ended …………………
NOTES:
i. The statement should be submitted in duplicate, to the Regional Office of
Reserve Bank under whose jurisdiction the A.D. branch is functioning.
ii. Details of transactions where the amount of remittance exceeds USD 100,000
or its equivalent should only be included in the statement.
iii. In cases where, at the time of advance remittance, purpose of remittance was
as import and subsequently the exchange has been used for other purpose
for which sale of exchange is permissible, and a document to the satisfaction
of Authorised Dealer has been produced, such cases should not be treated
as default and hence be excluded from the BEF statement.
iv. AD Category - I banks may accept ‘Into Bond Bill of Entry’ as a provisional
evidence of import into India. However, they may ensure submission of
Exchange Control copy of the Bill of Entry for Home consumption within a
reasonable period of time. Where EDI system has been implemented by
customs and the importer receives only one copy of the "ex-Bond Bill of Entry"
from the customs, AD Category - I banks may advise importer to submit a
photocopy of the "ex-Bond Bill of Entry" for home consumption after clearance
of the goods from the warehouse / bond, which may be duly verified by the
AD Category - I bank and accepted as final evidence of import. Cases where
‘Into Bond Bill of Entry’ has been submitted need not be reported in BEF
statement.
v. The statement should include details of all remittances, exceeding USD
100,000 from India or payments from abroad in connection with imports,
including advance payments, delayed payments, etc. irrespective of the
source of funding (i.e. EEFC accounts/foreign currency accounts maintained
in India and abroad, payments out of external commercial borrowings, foreign
investments in the shares of importers etc.)
vi. The cases reported in Part I of statement for the previous half-year should not
be reported again in Part I of the statement for the current half-year.
vii. In case no transaction is required to be reported, ‘NIL’ statement should be
submitted.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 77
viii. Statement should be submitted within 15 days from the close of the half-year
to which it relates.
Part I
1 2 3 4 5 6 7 8 9
A. Import by parties other than Public Sector Undertakings/Government
Departments
1
2
3
4
Etc
B. Import by Public Sector Undertakings/Government Departments
1
2
3
4
5
Etc
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 78
Part II
2
3
4
Etc
i. We certify that the particulars furnished above are true and correct as per our records.
ii. We further certify that the statement includes all cases which are required to be reported
under the prescribed procedure.
iii. We undertake to continue to pursue the cases with the importers reported in Part I of the
statement.
Name: :
Designation :
Place:
Date:
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 79
Annex-2
[A.P.(DIR Series) Circular No.2 dated July 9, 2004]
Statement of Gold Imported during the month ended ……….
Name of the Bank :
Date of Statement :
Number of Transactions Value of Gold Imported
EOU/SEZ Nom.Agency/ (USD million) (Rs. Crore)
Bank
EOU/SEZ Nom.Agency/ EOU/SEZ Nom.Agency
Bank /Bank
Gold
(i) Delivery
Against
Payment
Basis
(ii) Supp-
liers’ Credit
Basis
(iii) Consign-
ment Basis
(iv) Unfixed
Price Basis
Note: 1. Full details of transactions may be provided in cases where the number of
transactions in respect of a single importer exceeds ten transactions in a month or
the aggregate value of imports exceeds US Dollar 50 million.
2. Details of EOUs/Units in SEZ and Nominated Agencies should be given
separately.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 80
GR, SDF,PP and SOFTEX Forms Annex-3
EXCHANGE CONTROL DECLARATION (GR) FORM NO.
ORIGINAL
Exporter Invoice No. & Date SB No. & Date
fg
If export under:
Deferred Credit
Joint Venture
Rupee Credit
Others
RBI’s Approval/Cir. No. & Date
Custom House L/C. No.
Agent
S. Marks & Container No. & Kind of Statistical Code & Quantity Value FOB
No. No. Nos. Pkgs. Description of Goods
Net Weight
Gross Weight
Total FOB value (in
words)
Analysis of Export value Currency Amount Full export value or where not ascertainable, the value
which exporter expects to receive on the sale of goods.
FOB Value
Freight
Insurance Currency
Commission
Rate
Discount Amount
Other Deductions
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 81
EXCHANGE CONTROL DECLARATION (GR) FORM NO.
(Rupees)
Declaration under Foreign Exchange Management Act, 1999: I/We hereby declare that I/we am/are the
Seller/Consignor of the goods in respect of which this declaration is made and that the particulars given above are
true and that (a) *the value as contracted with the buyer is the same as the full export value declared overleaf/ (b) *the
full export value of the goods is not ascertainable at the time of export and that the value declared is that which I/we,
having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market.
I/We undertake that I/we will deliver to the bank named herein the foreign exchange representing the full export value
of the goods on or before @. in the manner specified in the Regulations under the Act, I/we further declare
that I/we am/are resident in India and I/we have a place of business in India.
I/We* am/are OR am/are not in Caution List of the Reserve Bank of
India.
Dat
e
(Signature of Exporter)
@ State appropriate date of delivery which must be within six months from the date of shipment, but for exports to
warehouses established outside India with the permission of the Reserve Bank, the date of delivery must be within
fifteen months.
*Strike out whichever is not applicable
SPACE FOR USE BY RESERVE BANK OF INDIA
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 82
EXCHANGE CONTROL DECLARATION (GR) FORM NO.
Duplicate
Exporter Invoice No. & Date SB No. & Date
AR4/AR4A No. & Date
Q/Cert. No. & Date Importer-Exporter Code No.
S. Marks & Container No. & Kind of Statistical Code & Quantity Value FOB
No. No. Nos. Pkgs. Description of Goods
Net Weight
Gross Weight
Total FOB value (in
words)
Analysis of Export value Currenc Amount Full export value or where not ascertainable, the value
y which exporter expects to receive on the sale of
goods.
FOB Value
Freight
Insurance Currency
Commission
Rate
Discount Amount
Other Deductions
EXCHANGE CONTROL DECLARATION (GR) FORM NO.
For customs
Is Export under L/C Yes No
arrangements?
If yes, name of advising bank in India Customs Assessable value Rs.
(Rupees)
Bank through which payment is to be received
Export value Verified
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 83
Customs
Appraiser
Cargo shipped in full/part
Quantity
Value
Declaration under Foreign Exchange Management Act, 1999: I/We hereby declare that I/we am/are the
Seller/Consignor of the goods in respect of which this declaration is made and that the particulars given above are
true and that (a) *the value as contracted with the buyer is the same as the full export value declared overleaf/ (b) *the
full export value of the goods is not ascertainable at the time of export and that the value declared is that which I/we,
having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market.
I/We undertake that I/we will deliver to the bank named herein the foreign exchange representing the full export value
of the goods on or before @. in the manner specified in the Regulations made under the Act, I/we further
declare that I/we am/are resident in India and I/we have a place of business in India.
I/We* am/are OR am/are not in Caution List of the Reserve Bank of India.
Dat
e
(Signature of Exporter)
@ State appropriate date of delivery which must be within six months from the date of shipment, but for exports to
warehouses established outside India with the permission of the Reserve Bank, the date of delivery must be within
fifteen months.
*Strike out whichever is not applicable
FOR AUTHORISED DEALER’S USE
Uniform Code
Number
*Indicate ( ) in the box applicable
Date of *(i) negotiation (ii) receipt for Bill No
collection,
Type of Bill* (i) DA (ii) DP (iii) Others (Specify)
Type of shipment : *(i) Firm Sale (ii) Consignment Basis
Contract
(iii) Others (Specify)
The GR Form was included in the statement sent to the Reserve Bank with the R Return for the fortnight ending ..
sent on …
We certify and confirm that we have received the total amount of (Currency) (amount) as
under being the proceeds of exports declared on this form.
Date of Currency Credit to Nostro Account in Debit to NR Rupee Account Period of R Return
receipt Country of a Bank in country with which the
In our name In the name of* Held with us Held with* realisation has
been reported to
RBI
(1) (2) (3) (4) (5) (6) (7)
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 84
SDF
[In duplicate]
Shipping Bill No. Date :
Date:
(Signature of Exporter)
@ State appropriate date of delivery which must be within six months from the date of shipment but
for exports to warehouses established outside India with permission of the Reserve Bank, the date of
delivery must be within fifteen months.
*Strike out whichever is not applicable.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 85
FOR AUTHORISED DEALER’S USE
Uniform Code Number
The SDF Form was included in the Statement sent to Reserve Bank with the R Return for the fortnight
ending …. .. sent on …..
We certify and confirm that we have received the total amount of (Currency amount) as under
being the proceeds of exports declared on this form.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 86
FORM PP
Exporter’s Declaration
ORIGINAL
Form Number :
(Please see ‘Notes to Exporters’)
1. (a) Name of the Post Office
(b) Number and date of Parcel Receipt
2. Exporter’s Name (for RBI use)
3. Importer/Exporter Code No.
4. Buyer’s/Consignee’s Name and address:
5. Country of destination
6. Nature of contract*(i) CIF/(ii) C&F/(iii)FOB/
(iv) Others (Specify): .....
7. Date of despatch .
8. Type of Shipment*(i) Outright Sale/(ii)
Consignment export/(iii) Others (Specify)
.....
9. Description of goods :
10. Quantity of goods : Unit† .....Quantity
11. Currency of Invoice
[†Ton/Kilogram/Litre/Cubic Metre/
Sq. Metre/Metre/Number/Others (Specify)]
.....
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 87
15. If the export is made under L/C arrangements,
name of advising bank in India
16. State if the payment is to be received through the
Asian Clearing Union: *Yes/No
17. Name & address of bank through whom payment is
to be received
I/We hereby declare that I/we am/are the *SELLER/CONSIGNOR of the goods in respect of which the
declaration is made and that the particulars given above are true and that *(a) the export value as
contracted with the buyer is the same as the full export value declared above/*(b) the full export value
of goods is not ascertainable at the time of export and that the value declared is that which I/we,
having regard to the prevailing market conditions, expect to receive on the sale of goods in the
overseas market.
I/We undertake that I/we will deliver to the bank named above the foreign exchange representing the
full export value of the goods on or before† in the manner prescribed in the Regulations made
under Foreign Exchange Management Act 1999. I/We further declare that I/we am/are resident in
India and I/we have a place of business in India.
I/We* am/are not in the Caution List of the Reserve Bank of India.
†State approximate date of delivery which must be within six months from the date of shipment.
*Strike out whichever is not applicable.
(For A.D.’s use)
(Signature of Exporter)
Stamp & Signature Date:
of Authorised
Dealer
Date Address :
:
Bank’s Uniform Code
No.
Notes to Exporters
(1) This Form should not be pasted on the Parcel.
(2) The PP Form procedure applies to postal exports to all territories outside India excluding
Nepal and Bhutan. The PP Form should be completed in duplicate in all cases.
(3) The Original should be submitted by the exporter to the Post Office after having it
countersigned by an Authorised Dealer in foreign exchange. The Post Office through
which the goods have been despatched will forward the Original to the nearest office of
Reserve Bank of India.
(4) All documents relating to export of goods from India must be passed through the medium
of an Authorised Dealer in foreign exchange in India within 21 days of the date of
shipment of the goods.
(5) The amount representing the full export value of goods must be realised within six
months from the date of shipment.
Note : Government of India/Indian Financial institutions may conclude from time to time Special
Trade Agreements with other countries providing for settlement of certain payments from
the countries in a specified manner or for exports to be financed from Government to
Government Credits. Reserve Bank will advise Authorised Dealers of such
arrangements by issue of circulars. Methods of payment specified in the individual
arrangements will have to be followed in such cases.
SPACE FOR USE BY RESERVE BANK OF INDIA
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 88
FORM PP
Exporter’s Declaration
DUPLICATE
Form Number :
1. (a) Name of the Post Office
(b) Number and date of Parcel Receipt
2. Exporter’s Name (for RBI use)
3. Importer/Exporter Code No.
4. Buyer’s/Consignee’s Name and address:
5. Country of destination
6. Nature of contract*(i) CIF/(ii) C&F/(iii)FOB/
(iv) Others (Specify): .....
7. Date of despatch .
8. Type of Shipment*(i) Outright Sale/(ii)
Consignment export/(iii) Others (Specify)
.....
9. Description of goods :
10. Quantity of goods : Unit† .....Quantity
11. Currency of Invoice
[†Ton/Kilogram/Litre/Cubic Metre/
Sq. Metre/Metre/Number/Others (Specify)]
.....
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 89
16. State if the payment is to be received through the
Asian Clearing Union: *Yes/No
17. Name & address of bank through whom payment is to
be received
I/We hereby declare that I/we am/are the *SELLER/CONSIGNOR of the goods in respect of which the
declaration is made and that the particulars given above are true and that *(a) the export value as
contracted with the buyer is the same as the full export value declared above/*(b) the full export value
of goods is not ascertainable at the time of export and that the value declared is that which I/we,
having regard to the prevailing market conditions, expect to receive on the sale of goods in the
overseas market.
I/We undertake that I/we will deliver to the bank named above the foreign exchange representing the
full export value of the goods on or before† in the manner specified in Regulations made
under the Foreign Exchange Management Act 1999. I/We further declare that I/we am/are resident
in India and I/we have a place of business in India.
I/We* am/are not in the Caution List of the Reserve Bank of India.
†State approximate date of delivery which must be within six months from the date of
shipment.
*Strike out whichever is not applicable.
(Signature of Exporter)
Stamp & Signature Date:
of Authorised
Dealer
Date Address :
:
Bank’s Uniform Code
No.
Note : All documents relating to export of goods from India must be passed through the
medium of an Authorised Dealer in foreign exchange in India within 21 days of the
date of shipment of the goods.
* Strike out whichever is not applicable Type of Bill *DA/(ii)DP/ (iii) Others
Type of shipment : *(i) Firm Sale Contract/ (ii)
Consignment Basis/ (iii) Others (Specify)
The PP Form was included in the Statement
sent to the Reserve Bank with the R Return for
the fortnight ending sent on
We certify and confirm that we have received the total amount of (Currency)
(Amount) as under being the proceeds of exports declared on this form.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 90
Date of Currency Credit to Nostro Debit to NR Rupee Period of R
Receipt Account in Account of a bank in Return with
(Country) (country) which the
realisation has
been reported to
RBI
In our name In the Held Held with†
name of† with us
1 2 3 4 5 6 7
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 91
SOFTWARE EXPORT DECLARATION (SOFTEX) FORM
SECTION - A
(For exports through data communication link)
Software Development 9 0 7
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 92
(b) Other Software
Video/TV Software 9 1 0
SECTION - B
(For receipt of Royalty on Software Packages/Products exported)
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 93
(Enclose copy of communication
from the foreign customer)
SECTION -C
I/We hereby declare that I/we am/are the seller of the software in respect of which this declaration is
made and that the particulars given above are true and that the value to be received from the buyer represents
the export value contracted and declared above. I/we also declare that the software has been developed and
exported by using authorised and legitimate datacom links.
I/We undertake that I/we will deliver to the bank named above the foreign exchange representing the full value of
the software exported as above on or before ......................... (i.e. within six months from the date of invoice/date of last
invoice raised during a month), in the manner specified in the Regulations made under the Foreign Exchange Management
Act, 1999.
____________________________
Place: Signature of the Exporter
Stamp Name: ______________________________
Date:
Designation: _________________________
==================================================================================
Enclosure:
(1) Copy of Export Contract [7(a)]
(2) Copy of Royalty Agreement [12(c)]
(3) Copy of communication from foreign customer [14]
==================================================================================
Space for use of the competent authority (i.e. STPI/EPZ/SEZ) on behalf of
Ministry of Information Technology
Certified that the software described above was actually transmitted and the export/royalty value declared by the
exporter has been found to be in order and accepted by us.
Place: _________________________________________
Date: (Signature of Designated Official of STPI/EPZ/SEZ
on behalf of Ministry of Information Technology)
Stamp Name: _______________________________________
Designation: __________________________________
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 94
SOFTWARE EXPORT DECLARATION (SOFTEX) FORM
SECTION - A
(For exports through data communication link)
Software Development 9 0 7
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 95
(b) Other Software
Video/TV Software 9 1 0
SECTION - B
(For receipt of Royalty on Software Packages/Products exported)
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 96
14. Calculation of royalty amount ___________________________________
(Enclose copy of communication
from the foreign customer)
SECTION -C
I/We hereby declare that I/we am/are the seller of the software in respect of which this declaration is
made and that the particulars given above are true and that the value to be received from the buyer represents
the export value contracted and declared above. I/we also declare that the software has been developed and
exported by using authorised and legitimate datacom links.
I/We undertake that I/we will deliver to the bank named above the foreign exchange representing the full
value of the software exported as above on or before ......................... (i.e. within six months from the date of
invoice/date of last invoice raised during a month), in the manner specified in the Regulations made under the
Foreign Exchange Management Act, 1999.
_______________________________
Place: Signature of the Exporter
Date: Stamp Name: ________________________________
Designation: ___________________________
==========================================================================
Enclosure:
(1) Copy of Export Contract [7(a)]
(2) Copy of Royalty Agreement [12(c)]
(3) Copy of communication from foreign customer [14]
===========================================================================
Space for use of the competent authority (i.e. STPI/EPZ/SEZ) on behalf of
Ministry of Information Technology
Certified that the software described above was actually transmitted and the export/royalty value declared by the
exporter has been found to be in order and accepted by us.
Place:
_________________________________________
Date: (Signature of Designated Official of
STPI/EPZ/SEZ
on behalf of Ministry of Information Technology)
Stamp Name: _________________________________
Designation: ____________________________
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 97
For Authorised Dealer’s use only
The SOFTEX Form included in the ENC statement sent to the Reserve Bank with the ‘R’ Return
(NOSTRO/VOSTRO) ....................................... for the period ending ................................... sent on
(Currency name)
We certify and confirm that we have received the total amount of.......................... ....... as under being the
(Currency) (Amount)
proceeds of exports declared on this form.
Date of Currency Credit to Nostro Account Debit to Non-Resident Period of R-Return with
Receipt in .................. Rupee Account of a which the realisation
(Country) bank in ..................... has been reported to RBI
(country)
In our name In the name Held with Held with
of ** us **
1 2 3 4 5 6 7
Place:____________ Stamp
Date:____________ ___________________________
(Signature of Authorised Official)
Name: ____________________________________
Designation : _______________________________
Name & Address of__________________________
Authorised Dealer ___________________________
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 98
SOFTWARE EXPORT DECLARATION (SOFTEX) FORM
SECTION - A
(For exports through data communication link)
Software Development 9 0 7
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 99
(b) Other Software
Video/TV Software 9 1 0
(c) Any other arrangement (a) Name and address of ___ ___________________
e.g. advance payment, etc. Authorised Dealer ______________________
including transfer/remittance
to bank account maintained (b) Authorised Dealer Code No. ________________
overseas (Please specify)
SECTION - B
(For receipt of Royalty on Software Packages/Products exported)
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 100
14. Calculation of royalty amount ___________________________________
(Enclose copy of communication
from the foreign customer)
SECTION -C
I/We hereby declare that I/we am/are the seller of the software in respect of which this declaration is
made and that the particulars given above are true and that the value to be received from the buyer represents
the export value contracted and declared above. I/we also declare that the software has been developed and
exported by using authorised and legitimate datacom links.
I/We undertake that I/we will deliver to the bank named above the foreign exchange representing the full
value of the software exported as above on or before ......................... (i.e. within six months from the date of
invoice/date of last invoice raised during a month), specified in the Regulations made under the Foreign
Exchange Management Act, 1999.
_____________________________
Signature of the Exporter
Place: Stamp Name: ________________________
Date:
Designation:
___________________
===========================================================================
Enclosure:
(1) Copy of Export Contract [7(a)]
(2) Copy of Royalty Agreement [12(c)]
(3) Copy of communication from foreign customer [14]
==========================================================================
Space for use of the competent authority (i.e. STPI/EPZ/SEZ) on behalf of
Ministry of Information Technology
Certified that the software described above was actually transmitted and the export/royalty value declared by the
exporter has been found to be in order and accepted by us.
Place: ___________________________________
Date: (Signature of Designated Official of
STPI/EPZ/SEZ
on behalf of Ministry of Information Technology)
Stamp Name: _________________________________
Designation: ____________________________
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 101
Annex-4
XOS
A. D. Code No……………
Part I – Outstanding export bills other than those on deferred payment terms
Sr. Bill No. Name & Exporter’s Date Due GR/PP/ Port of Shipping Name & Commodit
No and Address Code No./ of date SOFTE Shipment bill No. address y
. date of IE Code export of X and date of the
exporter No. reali- form overseas
sation No. buyer
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
___________________________________________________________________
Total
___________________________________________________________________
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 102
Part II – Exports on deferred payment terms where instalments (including
interest) are outstanding beyond due date
Sr. Name & Exporter’s No. & date Date of GR Port of Shipping Name & Commodity Invoice value
No. address Code No./ of RBI export Form Shipment bill No. address
of IE Code approval for No. and date of the
exporter No. deferred overseas Currency &
payment buyer Amount
term
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Value of goods Total Amount of Total Amount of Rupee Whether ECGC No. & date Remarks
covered under deferred instalments instalments outstanding equivalent of cover obtained of bank
deferred payment (including interest) (including interest) outstanding (Yes /No) certificate
terms(including already received beyond due date amount issued
interest)
Currency Amount Currency Amount Currency Amount
___________________________________________________________________
Total
___________________________________________________________________
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 103
Part III : Summary
Part I Part II
Outstandings as on
_______________
(End of previous
half-year)
Net position of
outstanding as on
______________
(End of half-year
under report)
We certify that all export bills i.e. export bills purchased, negotiated and sent for collection, outstanding
beyond the prescribed period / due date of realisation of as at the end of half-year under report have
been included in this statement.
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 104
Annex- 5
(Self write-off and extension of time )
(PART A)
Annual statement to be furnished to Authorised Dealers by exporters
giving details of export performance during a calendar year as on 31 Dec…..
(Amount in Rs 000s)
Total Export Proceeds Due Total Export Proceeds Export proceeds not realised
within the Prescribed period realised within the prescribed within the Prescribed period
of 180 days or higher period period of 180 days or higher of 180 days or higher period
as applicable period as applicable as applicable
No.of No.of No.of
GR/SOFTEX/ Amount GR/SOFTEX/ Amount GR/SOFTEX/ Amount
SDF/PP forms SDF/PP forms SDF/PP forms
due
Fully Realised
Partly Realised
(PART B)
(Amount in Rs 000s)
Details of Export Bills not Details of Extension / Extension/ Reduction in
Realised (partly or fully) within Reduction in invoice value/ invoice value / Write off
the prescsribed period Write off by the Exporter sought from AD
himself
GR/SOFTEX/ Amount Amount Revised due Amount Revised due
SDF/PP No. date date
@ @
(1) (2) (3)
Total
NOTE : 1) The exporter should approach AD/RBI for extension of time in respect of bills in Column
(3) in PART B.
2) Total of Bills in Column (2) in Part B should not exceed 10% of those in Column 1 of PART
A
3) From 2005 onwards Bills in Column 1 of PART A will include those which have been
extended for realisation by the exporter himself or with the approval of AD/RBI.
4) In respect of export bills written off (including reduction in invoice value) evidence for
surrender of export incentives to be enclosed.
@ For cases of extension
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 105
Annex - 6
Statement of Advance Remittance without bank guarantee or standby letter of credit where the
amount of advance is equivalent to or more than USD 5 million for import of Rough Diamonds
for the period ended ……………………..
Sl. No. Name of the Name of the Amount of Advance Whether document for
Company Importer Entity Payment made evidence of import
and IEC No. without BG / Standby submitted
LC
Diamond Trading
1. Company Pvt. Ltd.,
UK
RIO TINTO, UK
2.
BHP Billiton,
3. Australia
ENDIAMA E. P.
4. Angola
ALROSA, Russia
5.
GOKHARAN,
6. Russia
Date :
Stamp :
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 106
Annexure 7
Form – TC Annex to A.P. (DIR Series) Circular No. 87 dated April 17,
2004
Part I : Approvals of Trade Credit granted by all branches during the (Month /
Year)…………
Address : Tel :
Fax :
Sr. Date of Loan Category of Name of Country Currency Amount Equiv. Rate of Other
No Approv Identificatio Borrower Lender* of Amt.inUS Interest chages
al n No. Lender* D in USD
1 2 3 4 5 6 7 8 9 10 11
Tota
l
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 107
Form – Excel format Annex to A.P. (DIR Series) Circular No. 87 dated April 17, 2004
TC
Part I: Approvals of Trade Credit granted by all branches during the (Month / Year)…………
e-mail:
12 13 14 15 16 17 18
Note 1: The format of the loan identification number is : TC/(Name of the Bank/branch)/(Identification
No.)
Note 2: Information in column nos. 8 to 13 should be numeric only. No alphabets should be entered in
those columns.
Note 3:Date format in col. No 2 is YYYY/MM/DD. For example, December 31, 2003 should be entered
as 2003/12/31
Note 4:Data on rate of interest (col. No 10) & all-in-cost(col no 12) should be entered as follows: 3 per
cent per annum is to be typed as '3.00' without any % sign.
Note 5:In the Col. No 13, no.of days/month/year under period of credit may be entered as follows: '90'
for 90 days.
Note 6:In the case of unit of time period(Col. No 14), only unit of time period such as days(DD),
months(MM), year(YY) to be entered.
Note 7: Codes for Category of Borrower (in Col. 4) may be entered as follows: PUB: Public Sector,
BKG: Banking, PVT:Private
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 108
Part II : Disbursement, Utilisation and Debt Servicing of Trade Credit during (month) / (year)
Repayments Date of
(USD)
Sr.N Loan Amount Disburse Utilisat Princip Interest Other Total Outstan Shipment Final
o. Ident Approv ment ion al charges (6+7+8) ding (4- Repaymen
ificat ed (USD) (USD) 6) t
ion (USD)
No.
1 2 3 4 5 6 7 8 9 10 11 12
Note 2: Date format in col. No 11, 12 is YYYY/MM/DD. For example, December 31, 2003 should
be entered as 2003/12/31
1. All trade credits for imports approved by all our branches during the month------------------ have
been included in this statement.
2. Related import documents (including EC copy of Bill of Entry) towards utilisation of such trade
credits have been verified and found in order.
3. The drawal, utilisation and repayment of all trade credits approved by our branches have
been scrutinised and it is cerified that such drawal, utilisation and repayments of trade credits
Place:-----------------------
Date: ------------------------
[ Stamp]
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 109
Annexure 8
Statement on LCs/Guarantees/LOU/LOC issued by AD Category I Banks
As on quarter ended…………….
Name of the AD Contact person:
Address: Tel:
Email: Fax:
Up to one year
Date [ Stamp]
Handbook on FEMA regulations – Imports and Exports Feb’09 State Bank Staff College, Hyderabad 110