Attention of authorised dealers is invited to sub-paragraph
No.1(A)(ii) of the Schedule to the Reserve Bank Notification
No. FEMA 10/2000-RB dated 3rd May 2000 as amended
from time to time, in terms of which payments received
in foreign exchange by a 100 per cent Export Oriented
Unit or a unit in (a) Export Processing Zone or (b)
Software Technology Park or (c ) Electronic Hardware
Technology Park are allowed to be credited to Exchange
Earner's Foreign Currency (EEFC) Account.
2.
It has been decided that, payments received in foreign
exchange by a unit in Domestic Tariff Area (DTA) for
supply of goods to a unit in Special Economic Zone
(SEZ) out of its foreign currency account are to be
treated as eligible foreign exchange earnings for
the purpose of credit to the EEFC Account. It will,
therefore, be in order for authorised dealers to credit
such payments received in foreign exchange by a unit
in DTA to its EEFC Account.
3.
The facility will be available in respect of foreign
exchange received by the recipients from the date
of this circular.
4. Necessary amendments to the Foreign Exchange Management
(Foreign Currency Accounts by a person resident in
India) Regulations 2000 are being notified separately.
5.
Authorised dealers may bring the contents of this
circular to the notice of their concerned constituents.
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).
