Export Realisation Period of 12 Months Set for SEZ Units

[RBI Circular No. 108 dated 11th June 2013]

Sub: Export of Goods and Services - Realization and Repatriation period for units in Special Economic Zones (SEZ)

Attention of Authorized Dealer banks is invited to A. P. (DIR Series) Circular No. 91 dated April 1, 2003. In terms of provisions of Para A of the said circular, time limit for realization and repatriation of export proceeds, for the exports made by units in Special Economic Zones (SEZs), was done away with.

2.  It has now been decided that the units located in SEZs shall realize and repatriate, full value of goods/software/services, to India within a period of twelve months from the date of export. Any extension of time beyond the above stipulated period may be granted by Reserve Bank of India, on case to case basis.

3.  The above changes will be applicable with immediate effect and shall be valid for one year, subject to review.

4.  Necessary amendments to Notification No.FEMA.23/RB-2000 dated May 3, 2000 [Foreign Exchange Management (Export of Goods and Services) Regulations, 2000] have been issued vide Notification No.FEMA.273/2013-RB dated April 25, 2013 and notified vide G.S.R.No.342(E) dated May 29, 2013.

5.  AD Category - I banks may please bring the contents of this Circular to the notice of their constituents and customers concerned.

6.  The directions contained in this circular, have been issued under Section 10(4) and 11(1) of Foreign Exchange Management Act, 1999 (42 of 1999) and without prejudice to permissions / approvals, if any, required under any other law.

Notification No.273/2013-RB dated 25th April 2013

Sub: Foreign Exchange Management (Export of Goods & Services) (Amendment) Regulations, 2013

In exercise of powers conferred by clause (a) of sub-section (1), sub-section (3) of Section 7 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.23/2000-RB dated May 3, 2000 and Notification No.FEMA.99/2003-RB dated August 27, 2003, Reserve Bank makes the following amendment in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to time, namely:

1. Short Title and commencement

(i) These Regulations may be called the Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2013.

(ii) They shall come into force from the date of publication in Official Gazette.

2. Amendment to the Regulations

In the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, in Regulation 9, the first proviso viz. "Provided that where the goods or software are exported by the units in Special Economic Zones, the stipulation of period of realization and repatriation to India of full export value of goods or software shall not apply;" stands deleted.