Reserve Bank Of India
A. P. (DIR Series) Circular No. 46
October 23, 2012
To
All Category - I Authorised Dealer Banks
Dear Madam/ Sir,
Supply of Goods and Services by Special Economic Zones (SEZs) to Units
in Domestic Tariff Areas (DTAs) against payment in foreign exchange
Attention of the Authorised Dealer (AD) Category - I banks is invited to
A.P.
(Dir Series) Circular No.105 dated June 16, 2003, in terms of which units in the
Domestic Tariff Areas (DTAs) have been permitted to purchase foreign exchange
from ADs for making payment towards goods supplied to them by units in the
Special Economic Zones (SEZs).
- The matter has since been reviewed in consultation with the Ministry of
Commerce and Industry, Government of India and it has been decided to allow ADs
to sell foreign exchange to a unit in the DTA for making payment in foreign
exchange to a unit in the SEZ for the services rendered by it (i.e. a unit in
SEZ) to a DTA unit. It may, however, be ensured that there is an enabling
provision of supplying these goods/services by the SEZ unit to the DTA unit and
for payment in foreign exchange for such goods/ services to the SEZ unit, in the
Letter of Approval (LoA) issued to the SEZ unit by the Development
Commissioner(DC) of the SEZ.
- AD Category - I banks may bring the contents of this circular to the notice
of their constituent and customers concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(Rashmi Fauzdar)
Chief General Manager
RBI/2012-13/259