New Regulations an Exports of Goods and Services under FEMA

A.1 Introduction

A.2 Realization and repatriation of proceeds of export of goods / software / services

A.3 Foreign Currency Account

A.4 Diamond Dollar Account (DDA)

A.5 Exchange Earners’ Foreign Currency Account (EEFC Account)

A.6 Counter-Trade Arrangement

A.7 Exports to neighbouring countries by road, rail or river

A.8 Border trade with Myanmar

A.9 Counter –Trade arrangements with Romania

A.10 Repayment of State credits

A.11 Forfaiting

A.12 Export factoring on non-recourse basis

A.13 Project Exports and Service Exports

A.14 Export of goods on lease, hire, etc.

A.15 Export on elongated credit terms

B.1 Export of goods through Customs ports

B.2 Export of goods/ software done through EDI ports

B.3 Export of goods through post B.4 Mid-sea trans-shipment of catch by deep sea fishing vessels

B.5 SOFTEX Forms

B.6 all applications / correspondence with the Reserve Bank

B.7 export of services to which none of the Forms specified

B.8 Realization of export proceeds

B.9 Random verification

B.10 Short Shipments and Shut out Shipments

B.11 Consolidation of air cargo/sea cargo

B.12 Exemption from Declaration

C.1 Grant of EDF waiver

C.2 Receipt of advance against exports

C.3 EDF Approval for Trade Fair/Exhibitions abroad

C.4 EDF approval for export of goods for re-imports

C.5 Re-export of unsold rough diamonds from Special Notified Zone (SNZ) of Customs without EDF formality

C.6 Setting up of Offices abroad and acquisition of immovable property for Overseas Offices

C.7 Delay in submission of shipping documents by exporters

C.8 Return of documents to exporters

C.9 Landlocked countries

C.10 Direct dispatch of documents by the exporter

C.11 Part Drawings /Undrawn Balances

C.12 Consignment Exports

C.13 Opening / hiring of warehouses abroad

C.14 Export Bills Register

C.15 Follow-up of overdue bills

C.16 Reduction in invoice value on account of prepayment of usance bills

C.17 Reduction in invoice value in other cases

C.18 Change of buyer/consignee

C.19 Export of goods by Special Economic Zones (SEZs)

C.20 Extension of time

C.21 Shipments lost in transit

C.22 Export claims

C.23 Write-off of unrealized export bills

C.24 Write-off in cases of payment of claims by ECGC and private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA)

C.25 Write-off relaxation

C.26 Set-off of export receivables against import payables

C.27 Netting-off of export receivables against import payments – Units in SEZ C.28 Exporters’ Caution List

C.28 Exporters’ Caution List

D.1 Agency commission on exports D.2 Refund of export proceeds

D.2 Refund of export proceeds

Annex 1 - Form EFC

Annex 2 - Export Declaration Form

Annex 3 - Format of Softex Forms submitted in bulk for royalty receipt Summary Sheet

Annex 4 - Quarterly Statement showing details of overdue Export Advances

[RBI Circular No. 68 dated 12^th May 2016]

Sub- Foreign Exchange Management (Exports of Goods and Services) Regulations, 2015

Attention of Authorised Dealers (ADs) is invited to A.D.(M.A. Series) Circular No. 11 dated May 16, 2000 in terms of which ADs were advised of various Rules, Regulations, Notifications/ Directions issued under the Foreign Exchange Management Act, 1999 (hereinafter referred to as the Act). On a review it is felt necessary to revise the regulations issued under the Foreign Exchange Management (Exports of Goods and Services) Regulations, 2000 as amended from time to time. Accordingly, in consultation with the Government of India, the said regulations have been repealed and superseded by the Foreign Exchange Management (Exports of Goods and Services) Regulations, 2015.

2. The Annexure attached to this Circular contains detailed directions relating to dealings of ADs with their exporter clients.

3. The new regulations have been notified vide Notification No. FEMA. 23(R)/2015-RB dated January 12, 2016 c.f. G.S.R. No. 19 (E) dated January 12, 2016 and have come into force with effect from January 12, 2016. The Master Direction No. 16 of 2015-16 (Export of Goods and Services) has been updated accordingly to incorporate the above changes.

4. ADs may bring the contents of the circular to the notice of their constituents concerned.

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

[Click here for Annexure]