The Statutory Control
Section 7 of the Foreign Exchange Management Act, 1999 lays down the statutory control concerning exports. Under the provision of this section, RBI has issued Foreign Exchange Management (Export of Goods & Services) Regulations, 2000 w.e.f. 1.6.2000.
Under Regulation 3, 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
Export of goods or services may be made without furnishing the declaration in the following cases, namely -
(a) trade samples of goods and publicity material supplied free of payment;
(b) Personal effects of travellers, whether accompanied or unaccompanied;
(c) Ship’s store, transhipment cargo and goods supplied under the orders of Central Government in this behalf or of the military, naval or air force authorities in India
(d) Goods or software accompanied by a declaration by the exporter that they are not more than twenty-five thousand rupees in value;
(e) By way of gift of goods accompanied by a declaration by the exporter that they are not more than one lakh rupees in value;
(f) Aircrafts or aircraft engines and spare parts for overhauling and/or repairs abroad subject to their re-import into India after overhauling/repairs, within a period of six months from the date of their export;
(g) Goods imported free of cost on re-export basis;
(h) Goods not exceeding U.S. $ 1000 or its equivalent in value per transaction exported by Myanmer under the Barter Trade Agreement between the Central Government and the Government of Myanmer;
(i) The following goods which are permitted by the Development Commissioner of the Export Processing Zones or Free Trade Zones to be re-exported, namely:
(1) imported good found defective, for the purpose of their replacement by the foreign suppliers/collaborators;
(2) goods imported from foreign supplier/collaborators on loan basis;
(3) goods imported from foreign suppliers/collaborators free of cost, found surplus after production operations;
(J) replacement goods exported free of charge in accordance with the
provisions of Exim Policy in force, for the time being.
Declaration Forms
All exports to which the requirement of declaration applies must be declared on appropriate forms as indicated below:
GR FORM : To be completed in duplicate for exports otherwise than by
post including export of software in physical form i.e, magnetic tape/ discs and paper media.
SDF FORM : To be completed in duplicate and appended to the Shipping
Bill for exports declared to customs offices notified by the Central Government, which have introduced EDI system for processing shipping bill.
PP FORM : To be completed in duplicate for export by post.
SOFTEX : To be completed in triplicate for export of software
otherwise than in physical form i.e., magnetic tapes/ discs and paper media.
It may be noted that under the new Regulations form VP/COD has been dispensed with.
GR/PP forms are printed in distinctive colour and each set bears a printed number, which appears on both copies of the form. They are available for sale with Reserve Bank of India
Export declaration forms have utmost importance and are binding on the exporter. It is, therefore, necessary that enough care is taken while declaring exports on these forms with special reference on the following points :
(j) Name and address of authorised dealer through whom proceeds of exports
have been or will be realised should be specified in the relevant column of the form.
(ii) Details of commission and discount due to foreign agent or buyer should
be correctly declared otherwise difficulties may arise at the time of remittance of such commission.
(iii) It should be clearly indicated in the form whether the export is on ‘outright
sale basis’ or ‘on consignment basis’ and irrelevant clauses must be struck out.
(iv) Under the item ‘Analysis of full export value’, a break up of the full
export value of goods under f.o.b. value, freight and insurance should be furnished in all cases, irrespective of the terms of contract.
Disposal of Copies of Export Documentation Form
(i) GR forms covering export of goods other than jewellery should be completed by the exporter in duplicate and bother the copies should be submitted to Customs at the port of shipment. Customs will give their running serial number on both the copies of the GR forms after verifying the particulars and admitting the corresponding shipping bill. The value declared by exporter will also be verified by Customs and they will also record the assessed value. Duplicate copy will be returned to exporter and original will be retained by Customs for onward submission to reserve Bank. Duplicate copy of GR form will again be presented to Customs at the time of actual shipment. After examination of goods and certifying the quantity passed for shipment, the duplicate copy will again be returned to exporter for submission to an authorised dealer.
However, an exception to submission of GR forms to the Customs authorities has been made in case of deep sea fishing.
(ii) (a) PP forms are to be first presented to an authorised dealer for coutnersignature. The form will be countersigned by the authorised dealer only if the post parcel is addressed to his branch or correspondent bank in the country of import. The concerned overseas branch or correspondent is to be instructed to deliver the post parcel against payment or acceptance of relevant bill, as the case may be.
(ii) (a) PP forms are to be first presented to an authorised dealer for countersignature. The form will be countersigned by the authroised dealer only if the post parcel is addressed to his branch or correspondent bank in the country of import. The concerned overseas branch or correspondent is to be instructed to deliver the post parcel against payment or acceptance of relevant bills as the case may be.
(b) For post parcel addressed directly to the consignee, the authorised dealer
will countersign the form provided-
(i) an irrevocable letter of credit for the full value of export has been
open in favour of exporter and has been advised through authorised dealer concerned; or
(ii) the full value of the shipment has been received in advance by the exporter through an authorised dealer; or
(iii) the authorised dealer is satisfied on the basis of standing and track record of the exporter and arrangements made for realisation of the export proceed that he could do so. If the authorised dealer is not satisfied about the standing etc. of the exporter, the application is rejected. No reference is entertained by the Reserve Bank in such cases.
(c) The original PP form after countersignature will be returned to exporter by the authorised dealer and the duplicate will be retained by him. Original PP form should then be submitted to post office alongwith the parcel.
The export of computer software may be undertaken in physical form i.e. software prepared on magnetic tape and paper media as well as in non-physical form by direct data transmission through dedicated earth stations/satellite links. The export of computer software in physical form is subject to normal declaration on GR/PP form and regulations applicable thereto will also be applicable to such exports. However, export of software in non-physical form should be declared on SOFTEX Form. Besides computer software, export of Video/TV Software and all other types of software products/packages should also be declared on the SOFTEX Forms. Since export of software is fraught with many risks and special guidelines have been framed for handling such exports.
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