Foreign Exchange Management (Export of goods and services) Regulations, 2000

[G.S.R. 409 (E)]

In exercise of the powers conferred by clause (a) of sub-section (1) and subsection (3) of section 7, sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following regulations relating to export of goods and services from India, namely:-

(i)

These Regulations may be called the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000.

(ii)

They shall come into force on 1st day of June, 2000.

Definitions.

In these Regulations, unless the context requires otherwise, -

(i)

'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999) ;

(ii)

'authorised dealer' means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Act, and includes a person carrying on business as a factor and authorised as such under the said section 10 ;

(iii)

'Exim Bank' means the Export-Import Bank of India established under the Export-Import Bank of India Act, 1981 (28 of 1981);

(iv)

'export' includes the taking or sending out of goods by land, sea or air, on consignment or by way of sale, lease, hire-purchase, or under any other arrangement by whatever name called, and in the case of software, also includes transmission through any electronic media ;

(v)

'export value' in relation to export by way of lease or hire-purchase or under any other similar arrangement, includes the charges, by whatever name called, payable in respect of such lease or hire-purchase or any other similar arrangement;

(vi)

'form' means form annexed to these Regulations;

(vii)

'schedule' means schedule appended to these Regulations;

(viii)

'software' means any computer programme, database, drawing, design, audio/video signals, any information by whatever name called in or on any medium other than in or on any physical medium ;

(ix)

'specified authority' means the person or the authority to whom the declaration as specified in Regulation 3 is to be furnished;

(x)

'Working Group' means the Group constituted by the Reserve Bank for the purpose of considering proposals of export of goods and services on deferred payment terms or in execution of a turnkey project or a civil construction contract;

(xi)

the words and expressions used but not defined in these Regulations shall have the same meanings respectively assigned to them in the Act.

(1)

Every exporter of goods or software in physical form or through any other form, either directly or indirectly, to any place outside India, other than Nepal and Bhutan, shall furnish to the specified authority, a declaration in one of the forms set out in the Schedule and supported by such evidence as may be specified, containing true and correct material particulars including the amount representing -

(i)

the full export value of the goods or software; or

(ii)

if the full export value is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions expects to receive on the sale of the goods or the software in overseas market, and affirms in the said declaration that the full export value of goods (whether ascertainable at the time of export or not) or the software has been or will within the specified period be, paid in the specified manner.

(2)

Declarations shall be executed in sets of such number as specified.

(3)

For the removal of doubt, it is clarified that, in respect of export of services to which none of the Forms specified in these Regulations apply, the exporter may export such services without furnishing any declaration, but shall be liable to realise the amount of foreign exchange which becomes due or accrues on account of such export, and to repatriate the same to India in accordance with the provisions of the Act, and these Regulations, as also other rules and regulations made under the Act.

Notwithstanding anything contained in Regulation 3, export of goods or services may be made without furnishing the declaration in the following cases, namely:

a)

trade samples of goods and publicity material supplied free of payment;

b)

personal effects of travellers, whether accompanied or unaccompanied;

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 reimport into India after overhauling /repairs, within a period of six months from the date of their export;

g)

goods imported free of cost on re-export basis;

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;

i)⁴

the following goods which are permitted by the Development Commissioner of the Export Processing Zones, ⁴[Electronic Hardware Technology Parks, Electronic Software Technology Parks] or Free Trade Zones to be re-exported, namely:

1)

imported goods found defective, for the purpose of their replacement by the foreign suppliers/collaborators;

2)

goods imported from foreign suppliers/collaborators on loan basis;

3)

goods imported from foreign suppliers/collaborators free of cost, found surplus after production operations;

ia)⁴

goods listed at items (1), (2) and (3) 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;

j)

replacement goods exported free of charge in accordance with the provisions of Exim Policy in force, for the time being;

k)⁴

goods sent outside India for testing subject to re-import into India;

l)⁴

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. 

m)⁴

exports permitted by the Reserve Bank, on application made to it, subject to the terms and conditions, if any, as stipulated in the permission.

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 authorised dealer or the Reserve Bank, as the case may be.

Declaration in Form GR / SDF

(ii)

After duly verifying and authenticating the declaration form, the Commissioner of Customs shall forward the original declaration form/data to the nearest office of the Reserve Bank and hand over the duplicate form to the exporter for being submitted to the authorised dealer.

Declaration in form PP

(i)

The declaration in form PP shall be submitted in duplicate to the authorised dealer named in the form.