9911796707
TMI BlogExport of Goods and Services - Project ExportsX X X X Extracts X X X X X X X X Extracts X X X X ..... the approving authority, which shall consider the proposal in accordance with the guidelines issued by Reserve Bank from time to time. 2. With a view to simplifying and rationalising procedures, the Memorandum of Instructions on Project and Service Exports (PEM) has been revised. A copy of the revised Memorandum is enclosed. The major changes incorporated in the revised Memorandum are annexed. 3. Authorised Dealers may bring the revised guidelines in the Memorandum to the notice of their constituents concerned. 4. The directions contained in the Memorandum have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, Grace Koshie Chief General Manager ANNEXURE (A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined by the exporter and his banker in mutual consultation on merits of each case and on the basis of their commercial judgement. However, consumer durables and miscellaneous engineering goods (Part B of the list in Annexure I) should ordinarily continue to be exported on 'cash' terms. 4. Conditions necessary for clearance of proposals by authorised dealers / Exim Bank. At present, proposals which deviate from the stipulated conditions regarding advance / down payment, type of security for the contract etc. are referred to Exim Bank by authorised dealers and where necessary, by Exim Bank to the Working Group. Authorised dealers / Exim Bank may now relax these conditions based on their commercial judgement. Proposals involving Bridge Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position of the project / service export proposal. The period of repatriation can also be determined by the approving authority. Concerned exporter will however, be required to submit an undertaking to the authorised dealer to repatriate the amount within the period determined by the approving authority. Fulfilment of the undertaking by the exporter will need to be monitored by the authorised dealer who allows remittance and he is also required to monitor the project. 8. Third Country Purchases Authorised dealers could open letters of credit in India in favour of third country suppliers provided they were on back-to-back basis. Availability of letters of credit opened by foreign client in favour of the Indian exporters with similar term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tters in respect of Project and Service Export contracts cleared by authorised dealers were required to be forwarded by the concerned authorised dealer to the concerned Regional Office of Reserve Bank and all the members of the Working Group. Copies of such approvals may henceforth be sent to the Regional Office of Reserve Bank and in addition, to Exim Bank and ECGC only if their participatory interest by way of funded / non-funded facilities, insurance / risk cover, etc. is involved. 11. Progress Report on Execution of Contract. Progress of the execution of the contract in Form DPX 5 (now renumbered as DPX 3) was being submitted on a half-yearly basis by the exporter to all the institutions constituting the Working Group and the concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Exim Bank and ECGC. 13. Sale of Equipment Exported on Re-import Basis, etc. Equipment taken out of the country on reimport basis is required to be reimported to the country. However, if the equipment is sold abroad / given on hire basis, documentary evidence showing repatriation of entire sale proceeds or hire charges of equipment given on hire basis to other contractors abroad is required to be submitted to Reserve Bank. Such evidence will now be submitted to the authorised dealer who is monitoring the project. 14. Completion of Projects On completion of the Project, the exporter is required to submit a report giving full account of the various steps taken by him to Reserve Bank and all the members of the Working Group. Such repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Closure of foreign currency account with bank certificates evidencing transfer of balance to India immediately on completion of the relevant contract. 17. Foreign Currency Account in India Approving authority of the overseas contract i.e. Authorised Dealer/Exim Bank/Working Group can now allow project/service exporters to open, hold and maintain foreign currency account in India subject to certain terms and conditions. Hitherto, project/service exporters were required to approach Reserve Bank for permission to open such account in India. 18. Details of Site / Liaison Office, Payment of Agency Commission on Overseas Borrowings. The exporter may submit the following information/statements to the concerned authorised dealer which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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