Foreign Exchange Management Act, 1999 – Export of Goods and Services - FEMA - 035

Foreign Exchange Management Act, 1999 - Export of Goods and Services RESERVE BANK OF INDIA EXCHANGE CONTROL DEPARTMENT CENTRAL OFFICE MUMBAI - 400 001 A.P. (DIR Series) Circular No. 35 June 11, 2001 To All Authorised Dealers in Foreign Exchange Dear Sirs Foreign Exchange Management Act, 1999 - Export of Goods and Services Attention of authorised dealers is invited to paragraph C.10 of the Annexure to A.P. (DIR Series) Circular No.12 dated September 9, 2000, in terms of which authorised dealers have been advised to watch closely realisation of export bills and in cases where bills remain outstanding beyond the due date for payment or 6 months from the date of export, the matter should be promptly taken up with the concerned exporter. If the exporter still fails to arrange repatriation of the export proceeds, within six months or seeks extension beyond six months, the matter should be reported to the Reserve Bank in the prescribed manner. 2. In terms of the amendments made in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, vide Notification No.FEMA 36/2001-RB dated February 27, 2001, enclosed to A.P.(DIR Series) circular No.28 dated March 30, 2001, units in Special Economic Zones (SEZs) have been permitted to realise and repatriate the full export value of goods or software to India within twelve months from the date of export. However, as regards follow up of outstanding export proceeds, authorised dealers should send a statement in Form XOS containing the details of all export bills outstanding beyond six months from the date of shipment irrespective of the location of the exporter/unit. In case of units located in Special Economic Zones (SEZs), authorised dealers should indicate "SEZ" in the remarks column of XOSstatement. 3. Authorised dealers may being the contents of this circular to the notice of their constituents concerned. 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). Any contravention or non-observance of these directions is subject to the penalties prescribed under the Act. Yours faithfully P.K. BISWAS Chief General Manager