proDUCT ANAlYsIs

HS CODE: 630532 (Flexible intermediate bulk containers, manmade material)

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FIEO NEWS l October 2015

Updating exporters on RBIs Master Circulars

FIEO (ER) organised an executive
updating session on RBIs Master Circulars related to exports issued recently. The objective of the updating
sessions was to apprise members of
changes in Master Circulars issued by
RBI on July 1, 2015. The topics included
were Master Circular on Rupee and
Foreign Currency Export Credit and
Customer Service to Exporter besides
Master Circular on Export of Goods
and Service.
Mr Pravin Saraf, Managing Committee Member, FIEO in his address
welcomed Mr Gautam Chakrabarti, Assistant General Manager; Ms Amrita
Bera, Manager from Reserve Bank of
India and the participants. He apprised
that as a part of its monitoring and supervisory services, RBI issues master
circulars on various services it provides
including the master circular of goods
and services. He added that this is the
bible which is followed by the authorized dealer banks all over India and is
amended from time to time over the
year.
Ms Amrita Bera, Manager, Reserve
Bank of India gave a detailed presentation on the master circulars. The
points discussed during session included:

According to the Para B.3 of

RBI Master Circular No.14/2015-16
dated July 1, 2015 on exports of goods

FIEO NEWS l October 2015

From left are Mr P T Srinath,

Joint Director, FIEO; Mr Pravin Saraf,
Managing Committee Member, FIEO;
Mr Gautam Chakrabarti, Assistant
General Manager; Ms Amrita Bera,
Manager, Reserve Bank of India

and services it is obligatory on the part of

the exporter to realize and repatriate the
full value of goods/software/services to
India within the stipulated period from
the date of export, as under:
i) It has been decided in consultation
with Government of India that the period
of realization and repatriation of export
proceeds shall be nine months from the
date of export for all exporters including
Units in SEZs, Status Holder Exporters,
EOUs, Units in EHTPs, STPs and BTPs until
further notice.
ii) Goods exported to a warehouse
established outside India: As soon as it is
realized and in any case within fteen
months from the date of shipment of
goods.

Advance payments against ex-

ports Para B.8 of the RBI Master Circular no. 14/2015-16 dated July 1,
2015 on Export of Goods and Services
as well as A.P.(DIR Series) Circular no.
74 dated February 9, 2015.
i) In terms of Regulation 16 of
Notication No. FEMA 23/2000-RB
dated May 3, 2000, where an exporter
receives advance payments (with or
without interest), from a buyer outside
India, the exporter shall be under an obligation to ensure that the shipment of
goods in made within one year from the
date of receipt of advance payment: the
rate if interest, if any, payable on the advance payment does not exceed LIBOR:
and the documents covering the shipment are routed through the AD Category I bank through whom the
advance payment is received.
ii) Provided that in the event of
the exporters inability to make the
shipment, partly or fully, within one
from the date of receipt of advance
payment, no remittance towards refund of unutilized portion of advance
payments or towards payment of interest, shall be made after the expiry
of the said period of one year, without
prior approval of the Reserve Bank.
The session was followed by an interactive session with the AGM(FED)
RBI. The meeting ended with a vote of
thanks to the Ocials of RBI and the
exporters.

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FIEO NEWS l October 2015