a) A certified copy of Reserve Bank's permission under Section 29 of FERA 1973.

b) Approval granted by the Director General of Civil Aviation, in original, for the flight/s (i.e. YA signals) concerned, if the collections reported are in respect of flight/s to/from India.

c) Undertaking/certificate regarding payment of income-tax (cf. paragraph 3B.10).

(iii) Authorised dealers may, on request, allow remittance upto 75% of remittable surplus (subject to availability of balance in the account) on ad-hoc basis as per quick estimates made by the foreign airline company/its agent, pending submission of statement form SPM 1 any time after the 20th of the month to which it relates. The balance amount of net remittable surplus may be allowed after scrutiny of the form SPM 1 statement. No further remittance should be allowed on ad-hoc basis till the relative form SPM 1 statement is submitted.

(iv) One copy of the statement in form SPM 1 should be forwarded by the authorised dealer to Reserve Bank after completing the certificate mentioned therein immediately after making the remittance along with the undertaking/certificate regarding payment of income-tax (cf. paragraph 3B.10). The statement should be submitted irrespective of whether remittance of surplus funds out of India is intended to be applied for or not.Authorised dealer should also specifically confirm on form A2 that the remittance has been made on the basis of airline's statement in form SPM 1 for the relevant month.

(v) Authorised dealers should watch the regular receipt of the monthly statements from the airlines concerned who are maintaining rupee accounts with them and bring to the notice of Reserve Bank cases where the statements are not received by them for any particular month.

(vi) Authorised dealers may ensure that foreign airline companies or their agents do not keep the surplus collections of passage fare and freight in term deposits.

Remittance of Surplus Passage/Freight Collections by Foreign Shipping companies

8B.2 (i) Foreign shipping companies/their agents in India are required to submit to Reserve Bank through their bankers voyage-wise statements (in duplicate) in form SPM 2 within 35 days from the date of sailing of the vessel, vide paragraph 23 of the Guidelines (Annexure III) irrespective of whether remittance of surplus funds out of India is intended to be applied for or not. Applications for remittance of surplus freight and passage fare collections due to non-resident ship owners and shipping companies operating to/from India may be made by their offices or local agents in India to their bankers on form A2 together with a copy of the statement in form SPM 2 and the documents mentioned therein. The concerned authorised dealer may allow the remittance after scrutinising the application in accordance with the Guidelines given in Annexure V and after satisfying that the remittable amount has been correctly arrived at with reference to the documents produced and provided that the company has submitted the necessary undertaking/certificate regarding payment of income-tax (cf. paragraph 3 B.10). Detailed guidelines for scrutiny of applications received in form SPM 2 are given separately in Annexure V at the end of this Chapter. While permitting the remittance, the authorised dealer should also advise the agent that the discrepant amounts noticed during the scrutiny of the statements by Reserve Bank or the amount remitted in excess of its entitlement should be brought to India immediately by inward remittance from the overseas company concerned.

(ii) Authorised dealers should watch the receipt of the statements from the shipping companies/their agents concerned who are maintaining bank accounts with them for crediting the freight/passage collections. They should maintain a register for recording the particulars of SPM 2 statements received and remittances of surplus passage/freight collections allowed in form SRM.

(iii) Authorised dealers should also forward to Reserve Bank a monthly statement of remittances allowed in form SRM i.e. the form in which a register is maintained by them, after completing the certificate mentioned therein, alongwith copies of statements in form SPM 2 without its enclosures. The statement should be sent to Reserve Bank on or before 10th day of the succeeding month. The documents submitted by the applicants alongwith SPM 2 should be preserved for a period of one year from the date of remittance or till the date of acceptance of the transaction/s as in order by their internal auditors, whichever is later.

(iv) The local agents of the overseas Non Vessel Operating Common Carriers (NVOCCs) operating to/from India may approach the concerned Regional Office of Reserve Bank under whose jurisdiction the port of their activity falls for grant of general permission for remittance of surplus freight collections to their overseas principals, through a designated branch i.e. a branch of an authorised dealer with whom they are maintaining bank accounts styled as_________________________________________.A/c.__________________________

(Name of the Agent)
(Name of the principal)

alongwith the following documents -

(i) Certificate of Incorporation, Memorandum and Articles of Association of the overseas company i.e. NVOCC.

(ii) Details of its membership of any P & I Club or any other organisation for marine cargo insurance and a copy of the receipt in respect of last premium/subscription paid to such club/organisation or copy of membership certificate.

(iii) Financial status certificate from the bankers of NVOCC.

Reserve Bank will grant general permission to the local agent to make the remittances through the designated branch. After the general permission has been granted by the Reserve Bank for the purpose, the designated branch of authorised dealer may allow the remittances of surplus freight collection to the principal NVOCC in accordance with the instructions contained in sub-paragraphs (i) to (iii) above.

(v) Authorised dealers may, on request, allow remittance upto 75% of remittable surplus (subject to availability of balance in the account) on ad-hoc basis as per estimates made by the agent of a foreign shipping company, pending submission of SPM2 statement, after sailing of the vessel. The balance amount of net remittable surplus may be allowed only after scrutiny of the SPM2 statement (cf. Annexure V to this Chapter). No further remittance should be allowed if the relative SPM 2 statement is not submitted within 20 days from the date of ad-hoc remittance.

(vi) Foreign shipping companies operating feeder services to/from India or their agents in India and collecting freight/slot hire charges from Main Line Operators, Multimodal Transport Operators, NVOCCs or their agents should submit to Reserve Bank a voyagewise statement in form SPM 4 vide item (23A) of the Guidelines (Annexure III ). Applications for remittance of surplus collections due to non-resident owners and operators of feeder services operating in or through India should be made by their local offices or agents in India to their bankers on form A 2, citing a reference to the statement submitted directly to Reserve Bank. Such applications should be referred to Reserve Bank for approval.

(vii) Authorised dealers may ensure that the foreign shipping companies or their agents do not keep the surplus collections of passage fare and freight in term deposits.

Remittance of Surplus Passage/Freight Collections by Foreign Airline/Shipping Companies

11C.3 Regulations governing remittance of surplus freight and passage collections by foreign airline/shipping companies operating in or through India are laid down in Part B of Chapter 8.