GOVERNMENT OF INDIA
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
UDYOG BHAWAN, NEW DELHI – 110 011
Policy Circular No. 27/2009-2014
Dated: 25.03.2010
To
Jt.DGFTs,
All RAs
Subject: Acceptance of cash payments (in Foreign Currency Notes), for the
purpose of fulfillment of export obligation (EO) by Service Providers under EPCG
Scheme; as well as for eligibility for SFIS scrips.
Representations have been received from Regional Authorities and Service
Providers seeking clarification as to the guidelines for issuance of EPCG
Authorization in cases where the Service Provider receives Foreign Exchange in
cash from foreign consumers in India; for purpose of fulfillment of EO under
EPCG Scheme/as well as for eligibility for SFIS scrips.
- The matter has been examined and it is clarified that EPCG scheme is eligible
for all service providers as listed in Appendix 10 of HBP Vol. I.
- In terms of RBI guidelines, for services rendered by the Service Provider,
the foreign consumers (including NRIs) are permitted to make payment in cash
(i.e. in foreign currency notes) over the counter to the service provider, as
per limits prescribed by RBI. Such service providers earning foreign exchange by
receipt of foreign currency in cash from their customers, would be entitled to
count such payments received in foreign currency notes towards export obligation
of EPCG. Such earnings of foreign exchange shall also be entitled for SFIS
scheme. In such cases, the Service Provider as per RBI rules surrenders the
foreign currency notes to Authorized Persons (APs , including the APs’
franchises). However, for claiming benefit, of such foreign exchange received in
cash by the service provider under the EPCG or SFIS scheme, the Service Provider
must maintain a separate register containing the foreign consumers’ details,
like Name, Passport Number, date and amount of foreign exchange received in
cash.
- This issues with the approval of Director General of Foreign Trade.
(Akash Taneja)
Jt. Director General of Foreign Trade
(Issued from File No. 01/36/218/22/AM10/PC.V/EPCG.I)