Foreign Exchange Regulation Rules, 1974

The Foreign Exchange Regulation Rules, 1974

Published vide G.S.R. 80, dated 1.1.1974.

11/585

In exercise of the powers conferred by section 79 of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and in supersession of the Foreign Exchange Regulation Rules, 1952 the Central Government hereby makes the following rules, namely:-—

1. Short title and commencement .—(1) These rules may be called The Foreign Exchange Regulation Rules, 1974.

(2) They shall come into force at once.

2. Definitions .—In these rules, unless the context otherwise requires,-—

(a) “Act” means the Foreign Exchange Regulation Act, 1973 (46 of 1973);

(b) “Schedule” means a Schedule appended to these rules.

3. Service of direction, orders or notices made or issued under the Act, or these rules or under any order or notification made thereunder .—A direction, order or notice made or issued under the Act or these rules or any order or noti-fication made thereunder shall be served on any person in the following manner, that is to say:-—

(a) by delivering or tendering it to that person or to his duly authorised agent; or

(b) by sending it to him by registered post with acknowledgement due to the address of his place of residence or his last known place of residence or the place where he carries on, or last carried on, business, or personally works, or last worked, for gain; or

(c) if it cannot be served in any of the manners aforesaid, by affixing it on the outer door or some other conspicuous part of the premises in which that person resides or is known to have last resided or carries on, or last carried on, business, or personally works, or last worked for gain and the written report whereof should be witnessed by two persons.

[4. Indication of import-export code number .—The import-export code num-ber allotted by the Director General of Foreign Trade under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) shall be indicated on all copies of the GR or PP or VP/COD forms completed and lodged by the exporter or his agent with the Customs or the Postal Authorities and in all correspondence of the exporter with its bank or the Reserve Bank, as the case may be.]

5. Form of declarations .—(1) A declaration under section 18 of the Act shall be in one of the Forms set out in the Second Schedule and as specified therein according to the requirements of the case.

(2) Declarations shall be executed in sets of such number as indicated on the forms.

[6. Authority to whom declaration is to be furnished .—(1) [(a) In the case of specified customs offices, wherein the specified categories of Shipping Bills are processed electronically, the declaration Form SDF in respect of such Shipping Bills shall be submitted in duplicate to the Commissioner of Customs having jurisdiction over such specified customs offices. After duly verifying and authenticating the declaration Form SDF, the Commissioner of Customs shall hand over to the exporter one copy of such Shipping Bill marked as “Exchange Control Copy” in which declaration Form SDF has been appended for being submitted to the authorised dealer and order one copy of such Shipping Bill in which Form SDF had been appended to be kept in the records of the specified office.

(aa) in the case of custom offices other than those specified customs offices, and in respect of Shipping Bills other than the specified categories of Shipping Bills the declaration Form GR shall be submitted in duplicate to the Commissioner of Customs. After duly verifying and authenticating the declaration form, the Commissioner of Customs shall forward the original declaration form to the nearest office of the Reserve Bank and hand over the duplicate form to the exporter for being submitted to the authorised dealer.

Explanation .—For the purposes of this sub-rule, the expression-—

(i) “specified customs office” means the office of the Commissioner of Customs specified by the Commissioner of Customs having jurisdiction to specify custom offices for the purpose of this sub-rule;

(ii) “specified categories of Shipping Bills” means the categories of Shipping Bills processed electronically and specified by the Commissioner of Customs having jurisdiction to specify customs offices for the purpose of this sub-rule.]

[(b) The declaration Form PP shall be submitted in duplicate to the authorised dealer in foreign exchange named in the form. The authorised dealer shall, after countersigning the declaration form, hand over the original form to the exporter which shall be submitted 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.

(c) On realisation of the export proceeds, the authorised dealer shall, after due certification, submit the duplicate declaration form to the nearest office of the Reserve Bank.

(d) In the case of exports on value payable/cash on delivery basis, the declaration Form VP/COD shall be submitted to the postal authority with the relative parcel at the time of despatch. The postal authority shall send the form to the nearest office of the Reserve Bank.

(2) The documents pertaining to export shall, within 21 days from the date of export, be submitted to the authorised dealer mentioned in the relevant declaration form, unless the Reserve Bank authorises otherwise.]

7. Evidence in support of declaration .—(1) The Reserve Bank or subject to such directions if any, as may be given by Reserve Bank, the [Commissioner of Customs]or the postal authorities, may, to satisfy themselves of due compliance with section 18 of the Act, require such evidence in support of the declaration as may satisfy them that the exporter is a person resident in India, and has a place of business in India.

(2) The Reserve Bank, or subject to such directions, if any, as may be given by the Reserve Bank, the [Commissioner of Customs], or the postal authorities may require any exporter to produce in support of the declaration such evidence as may be in his possession or power to satisfy them-—

(a) that the destination stated on the declaration is the final place of destination of the goods exported;

(b) that the value stated in the declaration is-—

(i) the full export value of the goods;

(ii) where the full export value of the goods 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;

(c) that the full export value of the goods (whether ascertainable at the time of export or not) has been or will within the prescribed period be paid in the prescribed manner.

Explanation .—For the purpose of this rule “final place of destination” means a place in a country in which the goods are ultimately imported and cleared through customs of that country.

[8. Period within which export value of goods to be realised .—The amount representing the full export value of the goods exported shall be realised and be paid to the authorised dealer on the due date for payment or within six months from the date of shipment of the goods whichever is earlier:

Provided that, where the goods are exported to a warehouse established out-side India with the permission of the Reserve Bank, the amount representing full export value of the 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 may, for sufficient and reasonable cause shown, extend the said period.]

9. Manner of payment of export value of goods .—Unless otherwise authorised by the Reserve Bank, the amount representing the full export value of goods exported to the countries specified in the Third Schedule shall be paid through an authorised dealer and in the manner specified in the said Schedule.

10 to 11[* * *]

[12. Application for permission to practise any profession or carry on any occupation, trade or business in India .—An application for permission under section 30 of the Act by a national of a foreign state to practise any profession or to carry on any occupation, trade or business in India shall be submitted in Form EFN specified in the Sixth Schedule.]

[* * *]

SECOND SCHEDULE

[See rule 5]

PART A

[GR, PP, VP/COD and SDF Forms]

PART B

The Forms in Part A and set out in Column 1 below shall be used for the purpose of declaring exports specified against each in Column 2 below:

 

 

DECLARATION UNDER FOREIGN EXCHANGE REGULATION ACT :

I/We hereby declare that I/We am/are the *SELLER/CONSIGNOR of the goods in respect of which this declaration is made and that the particulars given above are true and that (a) *the value as contracted with the buyer is the same as the full export value declared overleaf (b) *the full export value of the goods is not ascertainable at the time of export and that the value declared IS that which I/We, having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market.

I/We undertake that I/We will deliver to the bank named herein the foreign exchange representing the full export value of the goods on or before .................. @...................... in the manner prescribed in rule 9 of the Foreign Exchange Regulation Rules, 1974.

I/We further declare that I/We am/are resident in India and I/We have a place of business in India.

I/We* am /are OR am/are not in Caution List of the Reserve Bank of India.

.................................................

(Signature of Exporter)

Date ..............

@ [State approximate date of delivery which must be the due date for payment or within six months from the date of shipment, whichever is earlier] out for exports to warehouses established outside India with the permission of the Reserve Bank the date of delivery must be within fifteen months.

*Strike out whichever is not applicable.

 

DECLARATION UNDER FOREIGN EXCHANGE REGULATION ACT:

I/We hereby declare that I/We am/are the *SELLER/CONSIGNOR of the goods in respect of which this declaration is made and that the particulars given above are true and that (a) *the value as contracted with the buyer is the same as the full export value declared overleaf (b) *the full export value of the goods is not ascertainable at the time of export and that the value declared IS that which I/We, having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market.

I/We undertake that I/We will deliver to the bank named herein the foreign exchange representing the full export value of the goods on or before ..........@........ in the manner prescribed in rule 9 of the Foreign Exchange Regulation Rules, 1974.

I/We further declare that I/We am/are resident in India and I/We have a place of business in India.

I/We* am/are OR am/are not in Caution List of the Reserve Bank of India.

..................................

(Signature of Exporter)

Date..............................

@[State approximate date of delivery which must be the due date for payment or within six months from the date of shipment, whichever is earlier] out for exports to warehouses established outside India with the permission of the Reserve Bank the date of delivery must be within fifteen months.

*Strike out whichever is not applicable.

 

(*Write the name of the concerned Indian Authorised Dealer Branch). Any other manner of receipt (Specify)...................

(Stamp & Signature of authorised dealer)

Date ............................................

Address ...................................

..................................................

.................................................

I/We hereby declare that I/We am/are the *SELLER/CONSIGNOR of the goods in respect of which the declaration is made and that the particulars given above are true and that* (a) the export value as contracted with the buyer is the same as the full export value declared above/* (b) the full export value of goods is not ascertainable at the time of export and that the value declared is that which I/We, having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market.

I/We undertake that I/We will deliver to the bank named above the foreign exchange representing the full export value of the goods on or before! ............ in the manner prescribed in rule 9 of the Foreign Exchange Regulation Rules, 1974. I/We further declare that I/We am/are resident in India and I/We have a place of business in India.

I/We *am/are not/am/are in the Caution List of the Reserve Bank of India. State approximate date of delivery which must be the due date for payment or within six months of the date of shipment, whichever is earlier.

*Strike out whichever is not applicable.

(For A.D.'s use)

.................................

(Signature of Exporter)

Stamp & Signature of Authorised dealer

Date.................................

Bank's Uniform Code No ..............

Date ............................

Address .........................

NOTES TO EXPORTERS

(1) This form should not be pasted on the parcel.

(2) The PP form procedure applies to postal exports to all territories outside India excluding Nepal and Bhutan. The PP form should be completed in duplicate in all cases.

(3) The Original should be submitted by the exporter to the Post Office after having it countersigned by an authorised dealer in foreign exchange. The Post Office through which the goods have been despatched will forward the Original to the nearest office of Reserve Bank of India.

(4) All documents relating to export of goods from India must be passed through the medium of an authorised dealer in foreign exchange in India within 21 days of the date of shipment of the goods.

(5) [The amount representing the full export value of the goods must be realised on the due date for payment or within six months from the date of shipment, whichever is earlier].

[***]

Note.- Government of India/Indian financial institutions may conclude from time to time Special Trade Agreements with other countries providing for settlement of certain payments from the countries in a specified manner or for exports to be financed from Government to Government Credits. Reserve Bank will advise authorised dealers of such arrangements by issue of circulars. Methods of payment specified in the individual arrangements will have to be followed in such cases.

I/We hereby declare that I/We am/are the *SELLER/CONSIGNOR of the goods in respect of which the declaration is made and that the particulars given above are true and that* (a) the export value as contracted with the buyer is the same as the full export value declared above/* (b) the full export value of goods is not ascertainable at the time of export and that the value declared is that which I/We, having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market.

I/We undertake that I/We will deliver to the bank named above the foreign exchange representing the full export value of the goods on or before ! ........................in the manner prescribed in rule 9 of the Foreign Exchange Regulation Rules, 1974. I/We further declare that I / We am/are resident in India and I/We have a place of business in India.

I/ We *am/are not/am/are in the Caution List of the Reserve Bank of India.

!State approximate date of delivery which must be within six months of the date of shipment.

*Strike out whichever is not applicable.

(For A.D's use)

..................................

(Signature of Exporter)

Stamp & Signature of Authorised dealer

Date.................................

Bank's Uniform Code No...............

Date ................................

Address .............................

.................................................

.................................................

.................................................

Note. - All documents relating to export of goods from India must be passed through the medium of an authorised dealer in foreign exchange in India within 21 days of the date of shipment of the goods.

FOR AUTHORISED DEALER'S USE

Uniform Code Number:...........................

Date of* (i) negotiation/ (ii) receipt for collection ..................... Bill No.......................

Type of bills *(i) DA/(ii) DP/(iii) Other...................................................

*Strike out whichever is not applicable.

Type of shipment: *(i) Firm Sale Contract/ (ii) Consignment Basis/(iii) Others (Specify)........The PP form was included in the Statement sent to the Reserve Bank with the R-Return for the fortnight ending.............sent on.............

We certify and confirm that we have received the total amount of.......as under being the proceeds of exports declared on this form.

Currency amount

(Write the name of the concerned Indian Authorised Dealer branch.)

Any other manner of receipt (Specify) ...............................

....................................................

(Stamp & Signature of authorised dealer)

Date .............................................

Address ................................................

NOTES TO AUTHORISED DEALER:

1. Please ensure that the columns on the face of the PP Form have been completed by the exporter and that they have been duly authenticated by the Postal authorities wherever necessary.
2. On receipt of the full export value of the shipment declared on this form, the authorised dealer will forward to the Reserve Bank this duplicate copy of the form together with a copy of the Customs certified Shipper's Invoice, duly certified. In respect of shipments made on consignment basis, the Account Sales received from the consignee in original in support of the proceeds actually realised should also be forwarded along with this copy of the form.
3. In case the net amount received falls short of the full export value declared on the form for reasons other than deduction of bank charges, please indicate the authority conferred on the authorised dealers by or under the Exchange Control manual or the Authorised Dealer's Circular or Circulars, as the case may be, or the Reserve Bank of India's approval number and date for reduction.

SPACE FOR USE BY RESERVE BANK OF INDIA

FORM VP/COD

Serial No. .................................

EXCHANGE CONTROL

DECLARATION REQUIRED FROM EXPORTER BEFORE SENDING GOODS BY POST ON VP/COD BASIS TO COUNTRIES OUTSIDE INDIA OTHER THAN NEPAL AND BHUTAN

Notes (i) This form should not be pasted on the parcel.

(ii) This form should be forwarded to the nearest office of the Reserve Bank of India by the Post Office through which the goods have been despatched.

Parcel Receipt No. and date.............. Name of the Post Office........

1. Exporter's name
2. [2. Import-Export Code No.]
3. Name and address of consignee:
4. Country of destination
5. Currency of invoice
6. Customs assessable value (Rupees)
7. Description of goods
8. Quantity of goods

(a) Unit of measure (Please tick the Appropriate unit)

(b) Quantity

9. Analysis of export value

No application for permission for remittance/deduction from the declared value on account of commission and/or discount will be considered by the Reserve Bank [or authorised dealer] unless these have been declared on this form:

I/We hereby declare that I/We am/are the seller of the goods in respect of which this declaration is made and that the particulars given above are true and that the value as contracted with the buyer is the same as the full export value declared above.

I/We further declare that I/We am/are resident in India and I/We have a place of business in India.

I/We* am/are not/am/are in the Caution List of the Reserve Bank of India.

*Complete whichever is appropriate.

(For use of Post Office)

Signature................

Post Office Stamp

Date:..................

(Signature of Exporter)

Date:..................

Address:...............

SPACE FOR USE BY RESERVE BANK OF INDIA

[FORM SDF]

[See rule 6 (1)(a)]

Shipping Bill No ..............................

Date:............................

Declaration under Foreign Exchange Regulation Act, 1973:

I/We hereby declare that I/We am/are the *SELLER/CONSIGNOR of the goods in respect of which this declaration is made and that the particulars given in the Shipping Bill No................dated.............., are true and that (a)* the value as contracted with the buyer is the same as the full export value declared in the above shipping bill (b)* the full export value of the goods is not ascertainable at the time of export and that the value declared is that which, I/We, having regard to the prevailing market conditions, expect to receive on the sale of goods in the overseas market.

I/We undertake that I/We will deliver to the bank named herein ...........................the foreign exchange representing the full export value of the goods on or before @..................in the manner prescribed in rule 9 of the Foreign Exchange Regulation Rules, 1974. I/We further declare that I/We am/are resident in India and I/We have a place of business in India.

I/We* am/are or am/are not in Caution List of the Reserve Bank of India.

Date ...........................

........................................................

(Signature of Exporter)

Name:..................

@State appropriate date of delivery which must be the due date for payment or within six months from the date of shipment, whichever is earlier, but for exports to warehouses established outside India with permission of the Reserve Bank, the date of delivery must be within fifteen months.

*Strike out whichever is not applicable.]

[THIRD SCHEDULE]

(See rule 9)

MANNER FOR REALISATION OF VALUE OF GOODS EXPORTED FROM INDIA

SIXTH SCHEDULE

(See rule 12)

[FORM EFM]

APPLICATION FOR PERMISSION UNDER SECTION 30 OF THE FOREIGN EXCHANGE REGULATION ACT, 1973 FOR PRACTISING ANY PROFESSION OR CARRYING ON ANY OCCUPATION, TRADE OR BUSINESS IN INDIA BY A FOREIGN NATIONAL

Instructions

1. Please complete all columns in the application form. Write N.A. where not applicable.
2. If the space provided in the form is not sufficient, the required information may be given in an Annexure duly numbered and attached to the form.
3. The form, duly completed by the foreign national, should be submitted to the Reserve Bank of India in Quadruplicate alongwith his current passport. If, however, the foreign national is not in India at the time of completion of this form, his passport should, be submitted to the Reserve Bank for verification within fifteen days of his arrival in India.

I hereby declare that the particulars given above are true and correct to the best of my knowledge and belief.

Place:.........................................

Date:..........................................

......................................

(Signature of Applicant)

[***]