A.P. (DIR Series) Circular No. 9

October 25, 2001

To
All Authorised Dealers in Foreign Exchange

Dear Sirs/ Madam,

Export of Goods and Services
Certification of SOFTEX Forms

Attention of Authorised Dealers is invited to Regulation 6 of the Reserve Bank Notification No. FEMA 23/2000-RB dated may 3, 2000 as amended by the Notification No. FEMA 36/2001-RB dated February 2, 2001, in terms of which designated officials of Ministry of Information Technology, Government of India at the Software Technology Parks of India (STPIs) of at Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones (SEZs) have been authorised to certify exprots declared of SOFTEX Forms by the units located in STPIs/EPZs/SEZs. In terms of the Exim Policy designated officials of STPIs/EPZs/SEZs may also certify the SOFTEX Forms in respect of EOUs which are registered with them. Accordingly, EOU software exporters may approach the designated officials of STPIs/EPZs/SEZs where they are registered, for certification of software exports on SOFTEX Forms.

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

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).

Yours faithfully,

FraCE Koshie
Chief General Manager

RESERVE BANK OF INDIA
(EXCHANGE CONTROL DEPARTMENT)
CENTRAL OFFICE
MUMBAI 400 001

Notification NO.FEMA 36/2001-RB dated February 27 2001

In exercise of the powers conferred by clause (a) of sub-section on (1) and sub-section (3) of Section 7, sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No. FEMA 23/2000-RB dated 3rd May 2000, Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to time, namely: -

1. (i) These Regulations may be called the Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2001.

(ii) They shall come into force with immediate effect.

2. In the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, (hereinafter referred as to "the said Regulations" ),

(i) in Regulation 4,

(a) in clause (i), after the words "Export Processing Zones", the words "Electronic Hardware Technology Parks, Electronic Software Technology Parks" shall be inserted,

(b) after clause (i), the following clause shall be inserted, namely: -

" (ia) goods listed at items (1), (2) and (3) of clause (i) to be re-exported by units in Special Economic Zones, under intimation to the Development Commissioner of Special Economic Zones/ concerned Assistant Commissioner or Deputy Commissioner of Customs. "

(c) after clause (j), the following clause shall be inserted, namely:-

"(k) goods sent outside India for testing subject to re-import into India;

(l) defective goods sent outside India for repair and re-import provided the goods are accompanied by a certificate from an authorised dealer in India that the export is for repair and re-import and that the export does not involve any transaction in foreign exchange,

(m) exports permitted by the Reserve Bank, on application made to it, subject to the terms and conditions, if any, as stipulated in the permission."

(ii) in Regulation 6 of the said Regulations, in sub-regulation (3), for clause (i), the following clause shall be substituted, namely: -

"(i) – The declaration in Form SOFTEX in respect of export of computer software and audio/video/television software shall be submitted in triplicate to the designated official of Ministry of Information 'I'echnology, Government of India at the Software Technology Parks of India (STPIs) or at the Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones (SEZs) in India."

(iii) in Regulation 9 of the said Regulations,

(a) the existing Regulation shall be numbered as "(1)';

(b) after sub-regulation (1) as so numbered, the following sub-regulation shall be inserted, namely: -

"(2) (a) Where the export of goods or software has been made by a unit situated in a Special Economic Zone, then notwithstanding anything contained in sub-regulation (1), the amount representing the full export value of goods or software shall be realised and repatriated to India within twelve months, from the date of export;

Provided that the Reserve Bank may for a sufficient and reasonable cause shown, extend the said period of twelve months.

(b) The Reserve Bank may for the reasonable and sufficient cause direct that the unit shall cease to be governed by sub-regulation (2);

Provided that no such direction shall be given unless the unit has been given a reasonable opportunity to make a representation in the rnatter.

(c) On such direction, the unit shall be governed by the provisions of sub-regulation (I), until directed otherwise by the reserve Bank.

(iv) in the Schedule to the said Regulations, for the "Software Export Declaration (SOFTEX) Form", the form shall be substituted by the form as said out in the Annexure.

(D. P. Sarda)
Executive Director

RESERVE BANK OF INDIA
(EXCHANGE CONTROL DEPARTMEENT)
CENTRAL OFFICE
MUMEBAI 400 001

Notification NO.FEMA 3 7/2001-RB dated February 27, 2001

In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No. FEMA 10/2000-RB dated 3rd May 2000, Reserve Bank of India makes the following amendments to Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, namely:

1. (i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations, 2001.

(ii) They shall come into force with immediate effect.

2. In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 (hereinafter referred to as "the said Regulations"), in the Schedule, after paragraph 4, the following paragraph shall be added, namely:

"5. Special provisions for EEFC Account of a unit in a Special Economic Zone".

(1) Save as otherwise provided in this paragraph, nothing contained in paragraphs 1 to 4 of this Schedule, shall apply to a unit in a Special Economic Zone.

(2) A unit in a Special Economic Zone may credit to its EEFC Account, all its receipts up to 100% in foreign exchange, except the following, namely:

(i) acquisition of foreign exchange by purchase against rupees from any person resident in India other than a unit in a Special Economic Zone,

(3) Paragraphs 3 and 4 shall mutatis mutandis apply to the EEFC Account of such unit."

SD/-

D.P. Sarda
Executive Director