To

Dear Sirs,

It has been decided to amend/modify exchange control regulations as stated in the following paragraphs:

Attention of authorised dealers is drawn to paragraph 7A.22 of Exchange Control Manual (ECM) in terms of which authorised dealers are permitted to make remittance in respect of import of goods by post parcel subject to, inter alia, submission of relative post parcel wrappers. It has now been decided that authorised dealers may allow remittances upto U.S.$ 250 or its equivalent per transaction in respect of imports by post parcel, without insisting on the relative parcel receipt/postal wrapper, provided the import is in accordance with the current EXIM policy and a declaration to the effect that the goods have been received through post is submitted by the applicant.

Please refer to Part D of Chapter 14 of ECM regarding Exchange Earners’ Foreign Currency (EEFC) accounts. In this connection, it is clarified that:

1. EEFC accounts may be maintained in any convertible foreign currency and in any form (current, savings or term deposit accounts). Savings bank accounts should, however, not be maintained in the names of firms, companies, etc.
2. In respect of liabilities representing the balances in the EEFC accounts authorised dealers should comply with CRR/SLR requirements as prescribed by Reserve Bank from time to time.

In terms of item IIA of Part B of Annexure I to Chapter 8 of ECM authorised dealers are permitted to allow casual gift remittance upto U.S.$ 1,000 per calendar year per person to the overseas relatives/friends of the applicant. It has now been decided to extend the same facility to corporates in India also. Accordingly, it will be in order for authorised dealers to allow remittance of casual gifts upto U.S.$ 1,000 per calendar year on behalf of their corporate clients also.

4.1 It has been decided to modify the format of the Supplementary Statement of Non-Export Receipts [cf. Item IIC(ii) of R Return (NOSTRO) and Column 8(b) of R Return (VOSTRO)]. Accordingly, the columns containing (i) Name and address of remitter and (ii) Reference No. and date of Reserve Bank’s/Government’s approval have been deleted from the existing format of the statement.

4.2. It has also been decided to amend the Schedules (SCH 3 to SCH 6) containing details of export realisation to include an additional column to indicate the ‘Shipping Bill Date’

With the introduction of Electronic Data Interchange (EDI), Customs authorities have started issuing computer based shipping bills. As Exchange Control copies of such shipping bills will replace GR duplicates, it is necessary to identify the transactions on the basis of shipping bill numbers. For the purpose of unique identification of each transaction, it is necessary to prefix the shipping bill number issued by Customs office, by Port Code Number. It has, therefore, been decided to amend the format of ENC statement. Authorised dealers are advised to indicate the Port Code Number, wherever available, as prefix to shipping bill number. In cases when the Customs authorities have not printed the prefix on the EDI shipping bill, it may be indicated as ‘000‘.

While applying for approval for overseas investment abroad, under the Fast Track Route, the applicant company is required to submit, among other documents, export realisation certificate in Form BCX as a part of enclosure to Form ODI. Exporters are also required to produce export realisation certificate for certain other purpose. Authorised dealers are, therefore, advised to issue certificate in Form BCX to exporters on request.

7.      The following amendments may be carried out in Exchange Control Manual:

Volume I

1. The existing paragraph 7A.22 may be renumbered as 7A.22(i) and a new sub-paragraph (ii) may be added as per Slip 1.
2. The existing item IIA of Part B of Annexure I to Chapter 8 may be substituted by Slip 2.
3. A new paragraph 14D.2(ii) may be inserted as per Slip 3.
4. The existing paragraph 14D.5 may be substituted by Slip 4.

Volume II

5. In Appendix III the existing Notification No.F.E.R.A.36/76-RB dated 10th May 1976 as amended upto 24th April 1999, issued under Section 13 of Foreign Exchange Regulation Act, 1973 [cf. Slip 3 to A.D.(M.A. Series) Circular No.12 dated 24th April 1999] may be substituted by Slip 5.
6. Form BCX may be inserted as per Slip 6 after Form BCI and its entry made in the Index of Appendix IV.
7. Statement ENC may be replaced by Slip 7.
8. Under ‘R-Supplementary Return" Supplementary Statement of Non-Export Receipts equivalent to Rs.1,00,000/- and above may be replaced by Slip 8.
9. Schedule SCH 3 may be replaced by Slip 9.
10. Schedule SCH 4 may be replaced by Slip 10.
11. Schedule SCH 5 may be replaced by Slip 11.
12. Schedule SCH 6 may be replaced by Slip 12.

8.      Authorised dealers may bring the contents of this circular to the notice of their concerned constituents.

9.      The directions contained in this circular have been issued under Section 73(3) of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any contravention or non-observance thereof is subject to the penalties prescribed under the Act.

Yours faithfully,

Chief General Manager

7A.22(ii) Authorised dealers may allow remittance towards import of books, samples, etc. through post parcel, on production of original invoice by the importer, without insisting on submission of parcel receipt/postal wrappers, where the amount of the bill does not exceed U.S.$ 250, or its equivalent provided the import is made in accordance with the current EXIM policy and a declaration is furnished by the applicant that the goods have been imported through post parcel.

IIA. Casual Gift Remittance

Upto U.S.$ 1,000 per calendar year per person/corporate for each beneficiary.

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14D.2(ii) Authorised dealers may maintain EEFC account in any convertible foreign currency and in any form (current, savings or term deposit accounts). Savings bank accounts in the names of firms, companies, etc. should, however, not be permitted.

Reserve Requirements

14D.5 The balances in the EEFC accounts will be subject to Cash Reserve Ratio and Statutory Liquidity Ratio as prescribed by Reserve Bank from time to time.

G.S.R.949 In pursuance of sub-section (2) of Section 13 of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and in supersession of the Notification of the Reserve Bank of India No.F.E .R.A.25/47-RB dated 10th July 1947, as amended from time to time, the Reserve Bank is pleased -