Remittance of Foreign Exchange for Miscellaneous purposes
AP (DIR Series) (2002-2003) Circular No. 54, dated 25-11-2002
Attention
of authorised dealers is invited to paragraph 3 of AP (M.A. Series) Circular
No. 11 dated May 16, 2000, advising them to be guided by the provisions of
Exchange Control Manual (1993 edition) regarding matters listed in Annexure V
of the circular, pending issue of further instructions.
2. The
matter has been reviewed and authorised dealers may allow remittance of foreign
exchange for miscellaneous purposes as indicated in the Annexure to this
circular. Directions contained in the Annexure supercede the instructions
contained in Parts B and C of Chapter 8 of the Exchange Control Manual (1993
edition).
3. Authorised
Dealers may please bring the contents of this circular to the notice of their
constituents concerned.
4. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Clarification relating to remittance for certain Current Account transactions under miscellaneous purposes
Remittances towards cost of Euro Rail etc. passes/tickets,
overseas hotel reservations, etc. for Indian travellers
Authorised
dealers may allow tour operators to remit the cost of rail/road/water
transportation charges outside India without any prior approval from the
Reserve Bank net of commission/mark up, due to the Indian agent. The sale of
passes/tickets in India can be made either against payment in Indian Rupees or
in foreign exchange released for visits abroad. The cost of passes/tickets
collected in Indian Rupees need not be adjusted in the travellers’ entitlement
of foreign exchange for private visit.
Remittances on account of Consolidated Tour Arrangements for
Foreign Tourists Visiting Neighbouring Countries
In
respect of consolidated tours arranged by travel agents in India for foreign
tourists visiting India and neighbouring countries like Nepal, Bangladesh, Sri
Lanka, etc., against advance payments/reimbursement through an Authorised
Dealer, part of the foreign exchange received in India against such
consolidated tour arrangements, may require to be remitted from India to these
countries for services rendered by travel agents and hoteliers in the
neighbouring countries. Authorised dealers may allow such remittances after
verifying that the amount being remitted to the neighbouring country (inclusive
of remittances, if any, already made against the tour) does not exceed the
amount actually remitted to India; and the country of residence of beneficiary
is not Pakistan.
(a) For
remittance relating to advertisements on foreign television, authorised dealers
may be guided by the provisions of Item 13 of Schedule III to the Government
Notification No. GSR 381(E) dated May 3, 2000. Authorised dealers may forward
applications that do not satisfy the prescribed parameters to the Reserve Bank
for consideration.
(b) Remittance
towards cost of advertisement in print media, radio, etc., outside India or on
internet may be allowed by authorised dealers. In case of advertisement by a
public sector undertaking they may be guided by Item (2) of Schedule II to the
Government Notification No. GSR 381(E) dated May 3, 2000, as amended from time
to time.
Authorised
dealers may allow cable operators or collection agents in India of overseas TV
media companies, to remit subscription collected from subscribers in
India/advertisement charges collected from the advertisers who are eligible to
advertise on overseas TV channels without any prior permission from the Reserve
Bank.
Persons
resident in India are permitted to incur liability in foreign exchange and to
make or to receive payments in foreign exchange, in respect of global bids
where the Central Government has authorised such projects to be executed in
India. In such cases, authorised dealers may sell foreign exchange to the
concerned resident Indian company which has been awarded the contract.
Authorised
Dealers may allow agents in India of the overseas organisations issuing
pre-paid telephone cards to remit the sale proceeds of such cards, net of their
commission, to the issuers of the telephone cards. The cost of such cards
collected in Indian Rupees need not be adjusted in the travellers’ entitlement
of foreign exchange for private visit.
Supply of Goods by a 100% EOU/EPZ Unit to another 100%
EOU/EPZ Unit against payment in foreign exchange
100%
EOUs and units in EPZs have been permitted to sell goods manufactured by them
to other 100% EOUs/EPZ units against payment in foreign exchange. Authorised
dealers may sell foreign exchange to the buyer units to make payment for such
transactions.
Note : The above provisions will also apply, mutatis mutandis, to
supply of computer services and hardware by one unit in Software Technology
Park (STP)/Electronic Hardware Technology Park (EHTP) to another unit in STP/
EHTP against payment in foreign exchange.
Supply of goods by 100% Export Oriented Units (EOUs)/ Units
in Export Processing Zones (EPZs), Electronic Hardware Technology Parks (EHTPs)
and Software Technology Parks (STPs) to units in Domestic Tariff Area (DTA)
against payment in foreign exchange
If
the concerned authorities permit EOUs, units in EPZs, EHTPs and STPs to sell
goods to buyers in DTA against payment in free foreign exchange, authorised
dealers may sell foreign exchange to the buyers of such goods in DTA, without
prior approval of the Reserve Bank.
Payment of fees in foreign currency - Embassy Affiliated
educational institutions
Authorised
dealers may sell foreign exchange towards payment of fees to
Schools/Educational Institutions under the administrative control of foreign
embassies.