Reducing Compliance Burden regarding SOFTEX Forms - SEZ - Instruction No. 113

Instruction No. 113 F. No. K. 43014(15)/2/2017-SEZ Government of India Ministry of Commerce Industry Department of Commerce SEZ Division Vanijya Bhawan, New Delhi, Dated the 14th July, 2023 To, All Development Commissioners of SEZs Subject: Reducing Compliance Burden regarding SOFTEX Forms -reg Sir, I am directed to state that SOFTEX is the mechanism of RBI which ensures collection of data on exports for statistical and monitoring purpose. To this end, reference is drawn to RBI Guidelines (copy enclosed) on reporting on foreign exchange transactions through FETERS system by using specific purpose codes based on the nature of transactions. 2. In case of SEZ units, the SOFTEX Form is being submitted online through SEZ-Online portal by the services units and thereafter, based on the approval of the office of Development Commissioners (DC) further submitted to RBI. 3. Instances have come to the notice that SEZ units are submitting the physical copies of invoices and in some cases, even physical copies of SOFTEX forms for verification to DC office despite the same is being filed online digitally. It is also noted that in case of units in STPI, the practice of submitting physical copies of SOFTEX and invoices has been dispensed away. 4. Accordingly, as a measure of enhancing ease of doing business, it has been decided to dispense with the practice of submitting physical copies of SOFTEX and invoices by SEZ units. As such, for the purpose of verification, any document including relevant invoices may be obtained electronically from the units with the approval of DC. In exceptional cases, where there is a need for more detailed verification, DC may permit seeking sample copies of relevant invoices in physical mode, on a case-to-case basis. 5. This issues with the approval of the competent authority. Yours Sincerely (Sumit Kumar Sachan) Under Secretary to the Govt. of India Tel. 23039829 e-mail: [email protected] RBI/2011-12/413 A.P. (DIR Series) Circular No. 84 February 29, 2012 To All Authorised Dealers in Foreign Exchange Madam / Sir, Compilation of R-Returns: Reporting under FETERS Attention of Authorised Dealer (Category I) banks is invited to A.P.(DIR Series) Circular No.77 d ated March 13, 2004 giving guidelines for compilation of R-Returns and reporting under the Foreign Exchange Transactions Electronic Reporting System (FETERS), and also the A.P.(DIR Series) Circular No. 30 dated February 25, 2008 on the move from the system of branch-wise reporting to bank-wise reporting under the FETERS. 2. Several subsequent developments have necessitated further modifications in FETERS. These include: a) The Working Group on Balance of Payments (BoP) Manual for India (Chairman: Shri Deepak Mohanty) constituted by the Reserve Bank reviewed, inter alia, the existing methodology for compilation of India s BoP with a view to making it consistent with the guidelines contained in the Sixth edition of Balance of Payments and International Investment Position Manual (BPM6) of the International Monetary Fund (IMF). The Working Group made several recommendations for improving the present compilation procedure as well as presentation of India s BoP statistics conforming to international best practices. b) With the transition to core banking system (CBS), move to complete transaction reporting is warranted instead of relying on the unclassified receipts survey (URS) for purpose-wise distribution of the consolidated amount under non-export receipts below a threshold. c) Directorate General of Systems (Customs and Central Excise), Govt.of India now issues 6-digit port-code as per UNLOCODE scheme in place of 2-digit port-code earlier issued by RBI. 3. In view of the above, the following changes shall be effected in reporting of R-Returns from the next financial year ( i.e., transactions taking place from April 1, 2012): i) The purpose codes for classification and reporting of foreign exchange transactions in FETERS should be as per the revised classification. Accordingly, all AD category-I banks are advised to report all foreign exchange transactions as per the revised purpose code list with effect from first fortnight of April 2012 as per the attached guidelines . ii) AD banks may indicate purpose codes for all foreign exchange transactions (including receipts under non-export transactions below Rs. 5 lakhs) under FETERS. The present system of reporting of non-export transactions below Rs. 5 lakhs (a) on a consolidated basis in BoP file and (b) submission of purpose-wise distribution of a sample of such small receipt transactions (as part of R-return in the URS file under FETERS), will be discontinued for transactions beyond March 31, 2012. iii) The amount field in all FETERS files will be increased to 15-digit format. iv) 6-digit port code will be used uniformly for reporting under FETERS. 4. The revised Guidelines for Submission of Data under the FETERS are attached herewith. 5. 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) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Rashmi Fauzdar) Chief General Manager