Exchange Earners’ Foreign Currency (EEFC) Account Scheme
AP (DIR Series) (2002-2003) Circular No. 34, dated 31-10-2002
In
terms of IECD Circular No. 9/04.02.02/2002-03 of date Reserve Bank has liberalised
the facility for liquidation of Rupee Packing Credit and Pre-shipment Credit in
foreign currency by permitting repayment of such advances by exporters from out
of their EEFC funds and/or rupee resources.
2. Authorised
dealers may, therefore, permit exporters to repay packing credit advances,
whether availed of in Rupee or in foreign currency, from balances in their EEFC
account to the extent exports have actually taken place.
3. While
allowing utilisation of this facility, authorised dealers should advise
exporters to adhere to the current exchange control requirements for exports
and ensure compliance specifically, with regard to realisation of export
proceeds in accordance with paragraph C.10 of Annexure to AP (DIR Series)
Circular No.12 dated September 9, 2000.
4. Authorised
Dealers may please bring the contents of this Circular to the notice of their
constituents concerned.
5. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the FEMA, 1999 (42 of 1999).