RESERVE BANK OF INDIA EXCHANGE CONTROL
DEPARTMENT CENTRAL OFFICE MUMBAI 400 001 A.P.(DIR Series) Circular
No.17 October 16, 2000 To All Authorised Dealers
in Foreign Exchange Dear Sirs, Barter Trade with
Myanmar under the Indo-Myanmar Border Trade Agreement
Please refer to A.D.(G.P. Series) Circular No.8 dated 17th May 1997
on guidelines for the border trade between Myanmar and India, under the Border
Trade agreement dated 21st January 1994 signed between the Government
of Myanmar and the Government of India. It has been decided
in consultation with the Government of India that under the border trade arrangement
between the two countries, imports from Myanmar into India should precede exports
from India to Myanmar. Accordingly, the revised guidelines for the border trade
are as follows:- - 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.
- Imports from
Myanmar to India shall precede export from India to Myanmar.
- The
border trade will be restricted to items agreed to as per the Border Trade Agreement
between India and Myanmar as listed in Annexure I.
- There
will be no monetary transaction under the barter trade arrangement.
- The
consignments of imports and exports should be invoiced in U.S. dollars.
- The
value of goods exported under barter trade should not exceed U.S.$ 20,000 per
transaction.
- Exports from India to Myanmar under barter
trade of the value not exceeding U.S.$ 1,000 per transaction are exempt from declaration
on the prescribed form viz. GR form, in terms of Reserve Bank Notification No.FEMA.23/2000-RB
dated 3rd May 2000. However, such transactions should be completed
in one or two days. Customs authorities at the Indo-Myanmar border will report
import/export transactons of the value not exceeding U.S.$ 1,000 to the Exchange
Control Department, Reserve Bank of India, Guwahati, on monthly basis.
- On
import of goods the party should submit documentary evidence such as Bill of Entry
to the designated bank, where the value exceeds U.S.$ 5,000.
- The
export of goods from India to Myanmar against import of goods from Myanmar to
India should be completed within a period of six months from the date of import.
- The
exporters should get the GR forms countersigned by one of the designated banks
viz. United Bank of India, Moreh Branch, Manipur and State Bank of India, Champai
Branch, Mizoram before submitting them to the Custom authorities. A copy of the
contract for import and export with Myanmar parties should also be submitted along
with the GR forms.
- On completion of export, the exporter
should submit duplicate copy of GR form along with all commercial documents viz.
copy of invoice certified by Customs, etc. within 21 days from the date of export,
to the concerned designated bank.
2. |
(i) | The
following branches of authorised dealers (i.e. banks) have been designated for
the purpose of monitoring transactions under the barter trade arrangement. |
| |
(a) | United
Bank of India (UBI), Moreh Branch, Manipur. |
| |
(b) | State
Bank of India (SBI), Champai Branch, Mizoram. |
| (ii) |
The designated banks’ branches should only handle proposals
for barter trade and documents relating to imports and exports thereunder. |
| (iii) |
The designated banks’ branches should countersign GR forms
original and duplicate, submitted to them by the exporters (before submitting
to the Customs authorities) 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. The GR forms
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'. | |
(iv) | 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
as per proforma enclosed (Annexure
II). | |
(v) | The
designated banks should forward a monthly statement as per the above form to the
Exchange Control Department, Reserve Bank of India, Guwahati, within 15 days from
the close of the month. | |
(vi) | On
completion of export against receipt of payment in the form of import of goods/commodities
from Myanmar, the concerned designated bank should surrender the duplicate copy
of GR form and evidence of import to the Exchange Control Department, Reserve
Bank of India, Guwahati along with the monthly statement, duly certified as under: |
'Value of goods exported adjusted
against value of goods imported under barter trade arrangement as per Contract
dated ………………..'. Before certifying the GR forms, the designated banks should verify
documentary evidence for import of goods/commodities of corresponding value and
ensure that the commodities exchanged are as per Annexure I.
| (vii) |
The transactions relating to barter trade should not be reported in R Returns. |
3. Authorised dealers may bring the contents of this
circular to the notice of their concerned constituents. 4.
The directions contained in this circular have been issued under Section 10(4)
and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
any contravention or non-observance thereof is subject to the penalties prescribed
under the Act. Yours faithfully, K.J.
UDESHI Chief General Manager
ANNEXURE – I Commodities
identified for exchange by residents living along the border between India
and Myanmar
1. |
Mustard/Rape Seed |
2. | Pulses
and Beans | 3. |
Fresh Vegetable |
4. | Fruits |
5. |
Garlic | 6. |
Onions | 7. |
Chillies | 8. |
Spices (excluding nutmeg, mace, cloves, Cassia) |
9. | Bamboo |
10. |
Minor forest products excluding Teak |
11. | Betel
Nuts and leaves | 12. |
Food items for local consumption |
13. | Tobacco |
14. |
Tomato | 15. |
Reed Broom | 16. |
Sesame | 17. |
Resin | 18. |
Corriander Seeds |
19. | Soyabean |
20. |
Roasted Sunflower Seeds |
21. | Katha |
22. |
Ginger | 23. |
Any other commodities as may be mutually agreed upon between
the two sides. | |