i)
RBI Master Circular – Import of Goods &
Services
ii)
RBI Master Circular – Export of Goods &
Services
iii)
RBI Master Circular – Export Credit in Foreign
Currency
iv)
RBI Master Circular – Rupee Export Credit
RBI
has issued above stated Circulars. In respect
of EOUs and SEZ Units the Circulars have clarified
as follows:-
[1]
Master Circular No. 07/2005-06 on Import of Goods
& Services
(a)
A.13 (II) Direct Import of Gold
ADs
can open Letters of Credit and allow remittances
on behalf of EOUs, units in SEZs in the Gem &
Jewellery sector and nominated agencies, for direct
import of gold, subject to the following
i.
The import of gold should be strictly in accordance
with the EXIM Policy.
ii.
Suppliers’ and Buyers’ Credit, including
the usance period of LCs opened for direct import
of gold, should not exceed 90 days.
iii.
Banker's prudence should be strictly exercised
for all transactions pertaining to import of gold.
Authorised Dealers should ensure that due diligence
is undertaken and all Know-Your-Customer (KYC)
norms and the Anti-Money-Laundering guidelines,
issued by DBOD, Reserve Bank (cf.DBOD.AML.BC.18/14.01.001/2002-03,
Dated August 16, 2002), are adhered to while undertaking
such transactions. Any large or abnormal increase
in the volume of business of the importer should
be closely examined to ensure that the transactions
are bonafide trade transactions.
iv.
Authorised Dealers should closely monitor such
transactions in addition to carrying out the normal
due diligence exercise. The credentials of the
supplier should also be ascertained before opening
of LCs. The financial standing, line of business
and the net worth of the importer customer should
be commensurate with the volume of business turnover.
Apart from the above, in case of such transactions
banks should also make discreet enquiries from
other banks to assess the actual position. Further,
in order to establish audit trail of import/export
transactions, all documents pertaining to such
transactions must be preserved for at least five
years.
v.
Authorised Dealers should follow up submission
of the Bill of Entry by the importers as instructed
in our A.P.(DIR Series) Circular No.9, dated August
18, 2003.
vi.
Head Offices/International Banking Divisions,
of Authorised Dealers undertaking gold import
transactions are required to submit as per the
format enclosed at Annex-2 a monthly statement
thereof, to the Trade Division, Foreign Exchange
Department, Amar Building, Central Office, Reserve
Bank of India, Sir P.M. Road, Fort, Mumbai 400001.
(b)
A.13 (III) Gold Loans
(i)
Nominated agencies / approved banks can import
gold on loan basis for on lending to exporters
of jewellery under this scheme. On the other hand
EOUs and units in SEZ who are in the Gem and Jewellery
sector can import gold on loan basis for manufacturing
and export of jewellery on their own account only.
(ii)
The maximum tenor of gold loan would be as per
the Foreign Trade Policy 2004- 2009, or as notified
by the Government of India from time to time in
this regard. The same is 240 days at present,
as per the FTP and Public Notice No.28/ 2004-09
dated December 1, 2004.
(iii)
Authorised Dealers may open Standby Letters of
Credit (SBLC), for import of gold on loan basis,
where ever required, as per FEDAI guidelines dated
April 1, 2003. The tenor of the SBLC should be
in line with the tenor of the gold loan. It may
be noted that the SBLC can be opened only on behalf
of entities permitted to import gold on loan basis,
viz. nominated agencies and 100% EOUs/units in
SEZ, which are in the Gem and Jewellery sector.
Further, the SBLC should be in favour of internationally
renowned bullion banks only. Authorised Dealers
can obtain a detailed list of internationally
renowned bullion banks from the Gem & Jewellery
Export Promotion Council. All other existing instructions
on import of gold and opening of Letters of Credit,
with usance period not exceeding 90 days, will
continue to be applicable.
[2]
Master Circular No. 08/2005-06 on Export of Goods
& Services
(a)
A. 4 Manner of Payment
f.
Payment of export may also be received by the
Gem & Jewellery units in SEZs and EOUs in
the form of precious metals i.e. Gold / Silver
/ Platinum equivalent to value of jewellery exported
on the condition that the sale contract provides
for the same and the approximate value of the
precious metals is indicated in the relevant GR
/ SDF / PP Forms.
(b)
A. 6 Foreign Currency Account
c)
A unit located in a Special Economic Zone (SEZ)
may be allowed to open, hold and maintain a Foreign
Currency Account with an Authorised Dealer in
India subject to conditions stipulated in Notification
No.FEMA 63/2002-RB dated June 21, 2002.
(c
) B.3.A. Terms of payment - Invoicing - (Software)
(iii)
The exporter should submit declaration in Form
SOFTEX in triplicate in respect of export of computer
software and audio / video / television software
to the concerned designated official of Government
of India at STPI / EPZ /FTZ /SEZ for valuation
/ certification not later than 30 days from the
date of invoice / the date of last invoice raised
in a month, as indicated above. The designated
officials may also certify the SOFTEX Forms in
respect of EOUs which are registered with them.
(d)
C.10 Follow-up of Overdue Bills
(ii)
Exporters who have been certified as `Status Holder'
in terms of Foreign Trade Policy are permitted
to realise and repatriate the full value of export
proceeds within a period of 12 months from the
date of shipment.
(iii)
100% Export Oriented Units (EOUs) and units set
up under Electronic Hardware Technology Parks
(EHTPs), Software Technology Parks (STPs) and
Bio –Technology Parks (BTPs) Schemes are
permitted to realize and repatriate the full value
of export proceeds within a period of 12 months
from the date of export in respect of export made
on or after September 1, 2004.
(iv)
The stipulation of twelve months or extended period
thereof for realisation of export proceeds is
no longer applicable for units located in Special
Economic Zones (SEZs). The units in SEZs will
however continue to follow the GR/ PP / Softex
export procedure outlined in Section B - Part
II of this circular.
[3]
Master Circular No. DBOD.DIR(Exp.)No. 02/04.02.02/2005-06
on Export Credit in Foreign Currency
1.1.13
Supplies from One EOU/EPZ/SEZ Unit to Another
EOU/EPZ/SEZ Unit
(i)
PCFC may be made available to both the supplier
EOU/EPZ/SEZ unit and the receiver EOU/EPZ/SEZ
unit.
(ii)
The PCFC for supplier EOU/EPZ/SEZ unit will be
for supply of raw materials/components of goods
which will be further processed and finally exported
by receiver EOU/EPZ/SEZ unit. The PCFC extended
to the supplier EOU/EPZ/SEZ unit will have to
be liquidated by receipt of foreign exchange from
the receiver EOU/EPZ/SEZ unit, for which purpose,
the receiver EOU/EPZ/SEZ unit may avail of PCFC.
The stipulation regarding liquidation of PCFC
by payment in foreign exchange will be met in
such cases not by negotiation of export documents
but by transfer of foreign exchange from the banker
of the receiver EOU/EPZ/SEZ unit to the banker
of supplier EOU/EPZ/SEZ unit. Thus, there will
not normally be any post-shipment credit in the
transaction from the supplier EOU/EPZ/ SEZ unit’s
point of view.
(iii)
In all such cases, it has to be ensured by banks
that there is no double financing for the same
transaction. Needless to add, the PCFC to receiver
EOU/EPZ/SEZ unit will be liquidated by discounting
of export bills.
[4]
Master Circular No. DBOD.DIR(Exp.)No. 01/04.02.02/2005-06
on Rupee Export Credit
(a)
1.1.5 'Running Account' Facility
(i)
(a) Banks may extend the ‘Running Account’
facility only to those exporters whose track record
has been good as also Export Oriented Units (EOUs)/Units
in Free Trade Zones/ Export Processing Zones (EPZs)
and Special Economic Zones (SEZs)
(b)
1.2.2 Rupee Export Packing Credit to Sub-Suppliers
(f)
EOUs/EPZ/SEZ units supplying goods to another
EOU/EPZ/SEZ unit for export purposes are also
eligible for rupee pre-shipment export credit
under this scheme. However, the supplier EOU/EPZ/SEZ
unit will not be eligible for any post-shipment
facility as the scheme does not cover sale of
goods on credit terms.
All
these circulars are available in RBI website www.rbi.org.in.
This is for your information please.
