RBI/2004-05/264
A.P. (DIR Series) Circular No. 25
November 1, 2004
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sirs,
Export of Goods and Services Period of
Realisation for Export Oriented Units (EOUs)
Attention of Authorised Dealer (AD) banks is
invited to the proviso 3 of sub-regulation (1) of Regulation 9 of Notification
No. FEMA 23/2000-RB dated May 3, 2000 in terms of which the Reserve Bank
has been empowered to extend the period for realisation and repatriation of
export proceeds to India beyond six months.
2. Following the announcement
by the Government in the Foreign Trade Policy in September 2004, it has been
decided that 100 per cent Export Oriented Units (EOUs) and units set up under
the Electronics Hardware Technology Parks (EHTPs), Software Technology Parks
(STPs) and Bio-Technology Parks (BTPs) Schemes would be allowed to realise and
repatriate the full value of export proceeds within a period of twelve months
from the date of export.
3. The existing guidelines relating to 100
per cent credit of foreign exchange earnings to EEFC account by the above units
would continue as hitherto.
4. This relaxation will be available in
respect of exports made on or after September 1, 2004.
5. Authorised Dealer banks may bring the
contents of this circular to the notice of their constituents and customers.
6. The direction contained in this circular
has been issued under Sections10(4) and 11(1) of the Foreign Exchange Management
Act,1999 (42 of 1999) and is without prejudice to permissions/approvals, if
any, required under any other law.
Yours faithfully
F. R. Joseph
Chief General Manager
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