| RESERVE BANK OF INDIA
RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI – 400 001
RBI/2004/54
A.P.(DIR Series) Circular No.68
February 11, 2004
To
All Authorised Dealers in Foreign Exchange
Madam / Sirs,
Export of Goods and Services – Liberalisation
Attention of Authorised Dealers is invited to paragraph C 20
of Part C to the Annexure
to AP(Dir Series) Circular No.12 of September 9, 2000 in terms of which
they were prohibited from either accepting for negotiation/collection shipping
documents from caution listed exporters concerning exports declared on GR /
SDF / PP / Softex forms or countersigning PP forms completed by them unless
these forms bear approval of the Reserve Bank.
2. It has now been decided that any declaration to be furnished
to the specified authority by the caution listed exporters should be submitted
to the Authorised Dealer for prior approval. Accordingly, GR / PP / SDF and
Softex forms of exporters who have been placed on the caution-list may be approved
by Authorised Dealers, if the exporters concerned produce evidence of having
received an advance payment or a valid irrevocable letter of credit in their
favour covering the full value of the proposed exports. Such approval may be
given even in cases where usance bills are to be drawn for the shipment, provided
the relative letter of credit covers the full export value and also permits
such drawings and the usance bills mature for payment within six months from
the date of shipment.
3. A Notification amending the relevant provisions of Foreign
Exchange Management (Export of Goods and Services) Regulations, 2000 notified
vide Notification No.FEMA.23/ RB-2000 dated May 3, 2000 is being
issued separately.
4. Authorised Dealers may bring the contents of this circular
to the notice of their constituents concerned.
5. The directions contained in this
circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange
Management Act,1999 (42of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager
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