Exchange Control - The Foreign Exchange Management (Export of
Goods and Services) Regulations, 2000.
[Source: Notification No.FEMA 23 /2000-RB dated 3rd May 2000
( As amended upto 31st December 2003)]

Declaration as regards export of goods and services (Regulation 3)

1. Every exporter of goods or software in physical form or through any other form, either directly or indirectly, to any place outside India, other than Nepal and Bhutan, shall furnish to the specified authority, a declaration in one of the forms set out in the Schedule and supported by such evidence as may be specified, containing true and correct material particulars including the amount representing -

   1. the full export value of the goods or software; or

   2. if the full export value is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions expects to receive on the sale of the goods or the software in overseas market, and affirms in the said declaration that the full export value of goods (whether ascertainable at the time of export or not) or the software has been or will within the specified period be, paid in the specified manner.

2. Declarations shall be executed in sets of such number as specified.

3. For the removal of doubt, it is clarified that, in respect of export of services to which none of the Forms specified in these Regulations apply, the exporter may export such services without furnishing any declaration, but shall be liable to realise the amount of foreign exchange which becomes due or accrues on account of such export, and to repatriate the same to India in accordance with the provisions of the Act, and these Regulations, as also other rules and regulations made under the Act.

Exemptions (Regulation 4)

Notwithstanding anything contained in Regulation 3, export of goods or services may be made without furnishing the declaration in the following cases, namely:

1. trade samples of goods and publicity material supplied free of payment;

2. personal effects of travellers, whether accompanied or unaccompanied;

3. ship's stores, trans-shipment cargo and goods supplied under the orders of Central Government or of such officers as may be appointed by the Central Government in this behalf or of the military, naval or air force authorities in India for military, naval or air force requirements;

4. goods or software accompanied by a declaration by the exporter that they are not more than twenty five thousand rupees in value;

5. by way of gift of goods accompanied by a declaration by the exporter that they are not more than one lakh rupees in value;

6. aircrafts or aircraft engines and spare parts for overhauling and/or repairs abroad subject to their reimport into India after overhauling /repairs, within a period of six months from the date of their export;

7. goods imported free of cost on re-export basis;

8. goods not exceeding U.S.$ 1000 or its equivalent in value per transaction exported to Myanmar under the Barter Trade Agreement between the Central Government and the Government of Myanmar;

9. The following goods which are permitted by the Development Commissioner of the Export Processing Zones, Electronic Hardware Technology Parks, Electronic SoftwareTechnology Parks or Free Trade Zones to be re-exported, namely:

   1. imported goods found defective, for the purpose of their replacement by the foreign suppliers/collaborators;

   2. goods imported from foreign suppliers/collaborators on loan basis;

   3. goods imported from foreign suppliers/collaborators free of cost, found surplus after production operations.

   (ia) goods listed at items (1), (2) and (3) of clause (I) to be re-exported by units in Special Economic Zones, under intimation to the Development Commissioner of Special Economic Zones/concerned Assistant Commissioner or Deputy Commissioner of Customs;

10. replacement goods exported free of charge in accordance with the provisions of Exim Policy in force, for the time being

11. goods sent outside India for testing subject to re-import into India;

12. defective goods sent outside India for repair and re-import provided the goods are accompanied by a certificate from an authorised dealer in India that the export is for repair and re-import and that the export does not involve any transaction in foreign exchange;

13. exports permitted by the Reserve Bank, on application made to it, subject to the terms and conditions, if any, as stipulated in the permission.

The importer-exporter code number allotted by the Director General of Foreign Trade under Section 7 of the Foreign Trade (Development & Regulation) Act, 1992 (22 of 1992) shall be indicated on all copies of the declaration forms submitted by the exporter to the specified authority and in all correspondence of the exporter with the authorised dealer or the Reserve Bank, as the case may be.

1. The declaration in form GR /SDF shall be submitted in duplicate to the Commissioner of Customs.

2. After duly verifying and authenticating the declaration form, the Commissioner of Customs shall forward the original declaration form/data to the nearest office of the Reserve Bank and hand over the duplicate form to the exporter for being submitted to the authorised dealer.

1. The declaration in form PP shall be submitted in duplicate to the authorised dealer named in the form.

2. The authorised dealer shall, after countersigning the declaration form, hand over the original form to the exporter who shall submit it to the postal authorities through which the goods are being despatched. The postal authorities after despatch of the goods shall forward the declaration form to the nearest office of the Reserve Bank.

1. The declaration in form SOFTEX in respect of export of computer software and audio/video/television software shall be submitted in triplicate to the designated official of Ministry of Information Technology, Government of India at the Software Technology Parks of India (STPIs) or at the Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones (SEZs) in India.

2. After certifying all three copies of the SOFTEX form, the said designated official shall forward the original directly to the nearest office of the Reserve Bank and return the duplicate to the exporter. The triplicate shall be retained by the designated official for record.

On realisation of the export proceeds, the authorised dealer shall, after due certification, submit the duplicate of the GR /SDF, PP or as the case may be, SOFTEX form to the nearest office of the Reserve Bank.

On realisation of the export proceeds, the authorised dealer shall, after due certification, submit the duplicate of the GR /SDF, PP or as the case may be, SOFTEX form to the nearest office of the Reserve Bank.

The Commissioner of Customs or the postal authority or the official of Ministry of Information Technology to whom the declaration form is submitted, may, in order to satisfy themselves of due compliance with Section 7 of the Act and these regulations, require such evidence in support of the declaration as may establish that -

1. the exporter is a person resident in India and has a place of business in India;

2. the destination stated on the declaration is the final place of the destination of the goods exported;

3. the value stated in the declaration represents -

   1. the full export value of the goods or software; or

   2. where the full export value of the goods or software is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions expects to receive on the sale of the goods in the overseas market.

Explanation :
For the purpose of this regulation, 'final place of destination' means a place in a country in which the goods are ultimately imported and cleared through Customs of that country.

Unless otherwise authorised by the Reserve Bank, the amount representing the full export value of the goods exported shall be paid through an authorised dealer in the manner specified in the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000.

Explanation :

For the purpose of this regulation, re-import into India, within the period specified for realisation of the export value, of the exported goods in respect of which a declaration was made under Regulation 3, shall be deemed to be realisation of full export value of such goods.

1. The amount representing the full export value of goods or software exported shall be realised and repatriated to India within six months from the date of export :

   Provided that where the goods are exported to a warehouse established outside India with the permission of the Reserve Bank, the amount representing the full export value of goods exported shall be paid to the authorised dealer as soon as it is realised and in any case within fifteen months from the date of shipment of goods;

   Provided further that the Reserve Bank, or subject to the directions issued by that Bank in this behalf, the authorised dealer may, for a sufficient and reasonable cause shown, extend the said period of six months or fifteen months, as the case may be.

   Explanation :

   For the purpose of this regulation, the "date of export" in relation to the export of software in other than physical form, shall be deemed to be the date of invoice covering such export.

2.  

   1. Where the export of goods or software has been made by a “by a unit situated in a Special Economic Zone, or a Status Holder Exporter, as defined in the Exim Policy in force , then notwithstanding anything contained in sub-regulation (1), the amount representing the full export value of goods or software shall be realised and repatriated to India within twelve months from the date of export;

   Provided that the Reserve Bank may for a sufficient and reasonable cause shown, extend the said period of twelve months

   2. The Reserve Bank may for reasonable and sufficient cause direct that the unit shall cease to be governed by sub-regulation (2):

   Provided that no such direction shall be given unless the unit has been given a reasonable opportunity to make a representation in the matter;

   3. On such direction, the unit shall be governed by the provisions of sub-regulation (1), until directed otherwise by the Reserve Bank.

No person shall enter into any contract to export goods on the terms which provide for a period longer than six months for payment of the value of the goods to be exported :

Provided that the Reserve Bank may, for reasonable and sufficient cause shown, grant approval to enter into a contract on such terms