Foreign Exchange Control Manual, Annexure-IV, Guidelines for Granting Remittance Facilities to Travel Agents etc.
Annexure IV : Guidelines for granting remittance facilities to
travel agents, etc. relating to remittances towards surface transportation,
hotel accommodation and use of telephone cards abroad
Annexure IV
Guidelines for granting remittance facilities to travel
agents/tour operators/ hotels/organisations in India out of collections made by
them from the Indian travellers undertaking visits abroad and paying in foreign
currency or in rupees for (i) issue of passes/tickets for surface transportation
abroad or (ii) booking hotel accommodation abroad or (iii) issue of pre-paid
telephone cards
[Paragraphs 8B.5 and 8C.7]
- General
- The details of the tie-up arrangement(s) for any of the above
mentioned facility should be
furnished by the applicant to an authorised dealer through whom
remittance facility is sought for, duly accompanied by a certified copy
of the agency agreement entered into with the overseas agent/tour
operator/ hotel/organisation indicating rate/amount of commission of the
Indian agent, type of passes/tickets to be sold, cost of each
pass/ticket, cost of hotel accommodation or telephone card (Details for
each facility, country-wise where services are provided, etc. are to be
furnished separately).
- Special Rupee accounts or designated foreign currency accounts after
obtaining specific
permission from the Reserve Bank may be opened for the deposit of
collections at different places/centres in India. However, such deposits
should be pooled into one main designated account with an authorised
dealer from which the remittances to the foreign agent/hotel/principal
may be allowed to be made. The details of credits for amount of foreign
exchange collected from each of the travellers should be furnished by
the agent in India with a copy of Reserve Bank's permission for opening
foreign currency account, to the designated branch of an authorised
dealer at the time of application for making remittance for the above
purpose.
- Terms and Conditions
Authorised dealers may allow the remittance of net collections of
amount paid by the Indian travellers after ensuring that the following terms
and conditions have been fulfilled and satisfying that the remittance
applied for is arrived at correctly duly supported by the appropriate
documentary evidence. An undertaking to the effect of the following
(wherever applicable) may also be taken from the Indian travel agent/tour
operator/hotel/organisation -
- Deleted.
- The sale of passes/tickets for rail/road/water transportation abroad
or facility of hotel accommodation abroad or sale of pre-paid telephone
cards has been made on behalf of the overseas organisations i.e.
_________________________________
(name and address to be specified )
(Details to be furnished separately for each of the above facilities).
- Passes/tickets for rail/road/water transportation have been sold to
persons resident in India (including foreign nationals permanently
resident in India) holding valid air tickets for travel from/to India to
a foreign country (other than Nepal and Bhutan). The air ticket number
and date of its purchase and travel as also the passport number of the
traveller have been endorsed on the passes/tickets issued for
rail/road/water transportation abroad or on the reservation slip issued
in connection with the booking of hotel accommodation abroad or
voucher/slip etc. issued while selling pre-paid telephone cards.
- Amount/cost collected in rupees towards sale of the passes/tickets
for surface transportation abroad or pre-paid telephone cards is
deposited in a special rupee account to be opened for the purpose with
the designated branch of an authorised dealer. No other credits should
be made into this account. Debits to the account are allowed only for
refunds to be paid to travellers and remittance in foreign currency to
the concerned foreign agent/principal, through the designated branch of
an authorised dealer.
- The cost of hotel accommodation abroad has been paid out of foreign
exchange released to the Indian traveller for undertaking visits abroad.
- Passes/tickets for surface transportation abroad or hotel
accommodation or pre-paid telephone cards have been sold to
non-residents (including foreign citizens not permanently resident in
India) against payment received in the permitted foreign currency
through normal banking channel or by debit to the NRE/FCNR account of
the applicant or against payment in rupees representing proceeds of
foreign currency surrendered by them during the visit of such
non-residents to India, duly supported by valid encashment certificate/s
in the prescribed form BCI, ECF or ECR and the conversion facility for
any other purpose has not been availed of against those certificates.
- Proper records of sale of passes/tickets or rail/road/water
transportation or booking of hotel accommodation or pre-paid telephone
cards or cancellations, if any have been maintained and would be made
available for inspection/verification by Reserve Bank as and when called
for.
- Advance payment to the overseas agent/principal for providing the
surface transportation facilities to the Indian travellers does not
exceed 10% of the cost of passes/tickets collected in rupees/foreign
currency and hotel accommodation actually collected in foreign currency
from each of the travellers out of foreign exchange released for visits
abroad and the advance amount as stated above would be adjusted within
one month from the date of remittance. In case of failure to adjust the
amount the same would be repatriated to India promptly and bank
certificate in support thereof would be produced to the Reserve Bank.
- No advance payment towards pre-paid telephone cards has been made to
the overseas principal.
- Application
Application for remittance of the net collections to the overseas
agent(s)/tour operator/hotel/principal(s) should be made (in duplicate) to
the designated branch of an authorised dealer together with the following
particulars/documents.
- Form A2
- Certified copy of the agency agreement
- Original invoice/rate card received from the foreign agent/tour
operator/hotel/organisation.
- Statement showing the total cost of passes/tickets or hotel
accommodation or pre-paid telephone cards collected in Indian rupees and
in foreign currency. Total numbers of Indian travellers and total amount
for each facility should be shown separately and paid in rupees and in
foreign currency, traveller-wise.
- Amount of commission/mark up and other charges of the Indian agent
deducted.
- Amount of refunds if any, allowed in rupees.
- Net amount remitted.
- Details of advance payment, if any, availed of and adjustment made
before allowing remittance.
- Amount collected in foreign exchange for passes/tickets and hotel
accommodation, deposited in foreign currency account (duly permitted by
Reserve Bank).
- Documentary evidence for collection in rupees from non-residents
vide paragraph 2(f) above.
- Compliance by Authorised Dealers.
- Authorised dealers should ensure that the remittances towards cost
of hotel accommodation abroad is allowed only out of the foreign
exchange released to the traveller for visits abroad. Amount paid for
the hotel reservation should be endorsed in the passport of the
traveller.
- Authorised dealers should further ensure that -
- Deleted.
- the applicant agent has not come to the adverse notice of
Enforcement Directorate or any other law enforcing agency.
- Remittance of amount to the overseas agent/touroperator/principal
represents net collection after deducting the commission due to the
Indian agent and advance payment if any, allowed to the overseas
agent/principal.
- the payments towards refunds to the travellers who had paid in
foreign currency have been made in rupees only in India.
- the remittance facility for above purposes is on actual basis
and no advance payment should be permitted for stocking of passes/
tickets/ reservation slips, etc.
- No advance payment is allowed for pre-paid telephone cards