RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
January 31, 2004
RBI/2004/35
A.P.(DIR Series) Circular No.61
To
All Authorised Dealers in Foreign Exchange
Madam / Sirs,
Exemption from Declaration of Export
of Goods and Software
Attention of Authorised Dealers is invited
to Regulation 3 of Notification No. FEMA 23/2000-RB dated May 3, 2000, in terms
of which every exporter of goods or software in physical form or through any
other form shall furnish a Declaration in GR/SDF/PP/Softex form affirming that
the full export value of goods or the software has been or will be paid in the
specified manner. Further, vide clause (d) of Regulation 4 ibid, submission
of this Declaration is waived if the exporter declares that the goods/software
is not more than Rs.25,000/- in value.
2. With a view to further liberalising
and simplifying the procedures for exporters, the above limit has been revised
to USD 25,000 and accordingly it has been decided to waive the submission
of Declaration in Form GR/SDF/PP/SOFTEX in respect of export of goods and software
of value not exceeding USD 25,000 or its equivalent. The exporters shall,
however, be liable to realise the amount of foreign exchange, which becomes
due or accrues on account of such exports, and to repatriate the same to India
in accordance with the provisions of FEMA Regulations.
3. In this connection, the Authorised
Dealers are advised to exercise caution in dealing with inward remittances by
ensuring adherence to the ‘Know Your Customer’ (KYC) norms and fully satisfy
themselves about the source of funds before certifying the proceeds as export
receipts for different purposes.
4. The upward revision in the limit
for mandatory submission of the Declaration will come into force from April
1, 2004.
5. The Authorised Dealers may please
note that all outstanding exports of value up to USD 25000 or its equivalent
shall not be reported in the XOS half yearly statements falling due on 31 December
2004 and thereafter.
6. Necessary amendments to the Foreign
Exchange Management (Export of Goods and Services) Regulations, 2000, vide Notification
No.FEMA 23/2000-RB dated May 3, 2000, are being notified separately.
7. Authorised Dealers may bring the
contents of this circular to the notice of their constituents concerned.
8. The directions contained in this
circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange
Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager