RBI/2004-05/193
A.P. (DIR Series) Circular No.12
September 25, 2004
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sirs,
Imports on c.i.f. basis by Government Departments
/ Public Sector Undertakings
Attention of Authorised Dealer Banks is invited
to item 4 of Schedule II of the Foreign Exchange Management (Current Account
Transactions) Rules, 2000 issued vide Government of India Notification No.GSR.381(E)
dated May 3, 2000 in terms of which, Public Sector Undertakings/ Government
Departments are required to obtain the approval of the Ministry of Shipping
(erstwhile Ministry of Surface Transport) for payment of imports on c.i.f. basis.
2. Government of India, Ministry of Finance
(Department of Economic Affairs) has since amended the said provision vide Gazette
Notification No.G.S.R. 849(E) dated October 27, 2003 limiting the requirement
of prior approval of the Government only to cases involving imports on c.i.f.
basis through ocean transport (copy enclosed).
3. Accordingly, Government Departments / Public
Sector Undertakings are required to obtain the approval of the Chartering Wing
of Ministry of Shipping (erstwhile Ministry of Surface Transport) for payment
of imports on c.i.f. basis, only for imports through ocean transport.
Such approvals will not be required by Public Sector Undertakings/Government
Departments, if the mode of transport is other than ocean transport.
4. The direction contained in this circular
has been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management
Act (FEMA), 1999 (42 of 1999) and is without prejudice to permissions / approvals,
if any, required under any other law.
5. Authorised Dealer Banks may bring the contents
of this circular to the notice of their constituents and customers concerned.
Yours faithfully,
( Grace Koshie )
Chief General Manager
Encl: As above
ANNEXURE
[A.P. (DIR Series) Circular No.12 dated
September 25, 2004)
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 27th October 2003
G.S.R.849(E). - In Exercise of the powers
conferred by Section 5 and Sub-section (1) and clause (a) of Sub-section (2)
of Section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), and
in consultation with the Reserve Bank, the Central Government having considered
it necessary in the public interest, makes the following amendment in the Foreign
Exchange Management (Current Account Transactions) Rules, 2000, namely :-
1. Short Title and Commencement :-(1) These
rules may be called the Foreign Exchange Management (Current Account Transactions)
(Fourth Amendment) Rules, 2003.
(2) They shall come into force
from the date of their publication in the Official Gazette.
2. In the Foreign Exchange Management (Current
Account Transaction) Rules, 2000, in Schedule II, under the heading "purpose
of Remittance", in item 4, after the words "Payment of import" the words "through
ocean transport" shall be inserted.
[F.No.1/5/EC/2000-Vol.II]
U.K. SINHA, Jt.Secy.
Foot Note :- The principal rules were published
in the Official Gazette vide G.S.R.381(E) dated 3rd May 2000 in Part
II, Section 3, Sub-section (i) and subsequently last amended vide No.G.S.R.731(E)
dated 5th September 2003.