FOREIGN EXCHANGE MANAGEMENT

With the transition to a market-based system for determining the external value of the Indian rupee the foreign exchange market in India gained importance in the early reform period.

Notifications

(50 kb)
Date : Jul 02, 2015
Re-export of unsold rough diamonds from Special Notified Zone of Customs without Export Declaration Form (EDF) formality

RBI/2015-16/110
A.P. (DIR Series) Circular No.1

July 02, 2015

To
All Authorised Dealers in Foreign Exchange

Re-export of unsold rough diamonds from Special Notified Zone of
Customs without Export Declaration Form (EDF) formality

Attention of the Authorised Dealers is invited to i) Regulation 3 of the Notification No. FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to time, in terms of which every exporter of goods/ software, to any place outside India, other than Nepal and Bhutan, is required to submit declaration in EDF /SOFTEX; ii) sub-regulation (g) of Regulation 4 of the Notification ibid, in terms of which exemption from furnishing declaration has been provided for export of goods imported free of cost on re-export basis; and iii) Government of India Circular No. 17/2015- Customs, i.e., F. No: 451/13/2015 Cus V dated May 26, 2015 (ANNEX), stipulating guidelines on manner of operation of the Special Notified Zone (SNZ) to enable and permit the trading of rough diamonds in India by the diamond mining companies as permitted in terms of A.P.(DIR Series) Circular No. 116 of April 01, 2014.

2. In order to facilitate re-export of unsold rough diamonds imported on free of cost basis at SNZ, it is clarified that the unsold rough diamonds, when re-exported from the SNZ (being an area within the Customs) without entering the Domestic Tariff Area (DTA), do not require any EDF formality.

3. Entry of consignment containing different lots of rough diamonds into the SNZ should be accompanied by a declaration of notional value by way of an invoice and a packing list indicating the free cost nature of the consignment. Under no circumstance, entry of such rough diamonds is permitted into DTA.

4. For the lot/ lots cleared at the Precious Cargo Customs Clearance Centre, Mumbai, Bill of Entry shall be filed by the buyer. AD bank may permit such import payments after being satisfied with the bona-fides of the transaction. Further, AD bank shall also maintain a record of such transactions.

5. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

6. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(A. K. Pandey)
Chief General Manager

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