Barter Trade with Myanmar under the Indo-Myanmar Border Trade Agreement
Please
refer to AD (GP Series) Circular No. 8 dated 17th May 1997 on
guidelines for the border trade between Myanmar and India, under the Border
Trade agreement dated 21st January 1994 signed between the Government
of Myanmar and the Government of India.
It has been decided in consultation with the Government of India that under the
border trade arrangement between the two countries, imports from Myanmar into
India should precede exports from India to Myanmar. Accordingly, the revised
guidelines for the border trade are as follows: -
i.
The barter trade shall be restricted to land route as per the Border
Trade Agreement between the two countries. Such barter trade transactions shall
take place only by way of head load or non-motorised transport system.
ii.
Imports from Myanmar to India shall precede export from India to Myanmar.
iii.
The border trade will be restricted to items agreed to as per the Border
Trade Agreement between India and Myanmar as listed in Annexure I.
iv.
There will be no monetary transaction under the barter trade arrangement.
v.
The consignments of imports and exports should be invoiced in US dollars.
vi.
The value of goods exported under barter trade should not exceed US$
20,000 per transaction.
vii.
Exports from India to Myanmar under barter trade of the value not
exceeding US$ 1,000 per transaction are exempt from declaration on the
prescribed form viz. GR form, in terms of Reserve Bank Notification No. FEMA
23/2000-RB dated 3rd May 2000. However, such transactions should be
completed in one or two days. Customs authorities at the Indo-Myanmar border
will report import/ export transactions of the value not exceeding US$ 1,000 to
the Exchange Control Department, Reserve Bank of India, Guwahati, on monthly
basis.
vii.
On import of goods the party should submit documentary evidence such as
Bill of Entry to the designated bank, where the value exceeds US$ 5,000.
ix.
The export of goods from India to Myanmar against import of goods from
Myanmar to India should be completed within a period of six months from the date
of import.
x.
The exporters should get the GR forms countersigned by one of the
designated banks viz. United Bank of India, Moreh Branch, Manipur and State Bank
of India, Champai Branch, Mizoram before submitting them to the Custom
authorities. A copy of the contract for import and export with Myanmar parties
should also be submitted along with the GR forms.
xi.
On completion of export, the exporter should submit duplicate copy of GR
form along with all commercial documents viz. copy of invoice certified by
Customs, etc. within 21 days from the date of export, to the concerned
designated bank.
2
i.
The following branches of authorised dealers (i.e. banks) have been
designated for the purpose of monitoring transactions under the barter trade
arrangement:
a. United Bank of India (RUBY), Moreh Branch, Manipur.
b. State Bank of India (SBI), Champai Branch, Mizoram.
ii.
The designated banks' branches should only handle proposals for barter
trade and documents relating to imports and exports thereunder.
iii.
The designated banks' branches should countersign GR forms original and
duplicate, submitted to them by the exporters (before submitting to the Customs
authorities) after satisfying themselves that the GR forms are supported by a
Bill of Entry for import of goods from Myanmar to India. Both original and
duplicate copies of the forms should be returned to the exporter. The GR forms
may be superscribed as under:
"Exports
under barter arrangement with Myanmar. The payments have been received in the
form of goods/ commodities of the equivalent value".
iv.
The designated banks should maintain a record of the transactions under
the barter trade arrangement on the basis of GR forms countersigned by them, in
a register as per proforma enclosed (Annexure II).
v.
The designated banks should forward a monthly statement as per the above
form to the Exchange Control Department, Reserve Bank of India, Guwahati, within
15 days from the close of the month.
vi.
On completion of export against receipt of payment in the form of import
of goods/commodities from Myanmar, the concerned designated bank should
surrender the duplicate copy of GR form and evidence of import to the Exchange
Control Department, Reserve Bank of India, Guwahati along with the monthly
statement, duly certified as under:
"Value
of goods exported adjusted against value of goods imported under barter trade
arrangement as per Contract dated ____________________". Before certifying
the GR forms, the designated banks should verify documentary evidence for import
of goods/commodities of corresponding value and ensure that the commodities
exchanged are as per Annexure 1.
vii. The transactions relating to barter
trade should not be reported in R Returns.
3.
Authorised dealers may bring the contents of this circular to the notice
of their concerned constituents.
4.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999) and any contravention or non-observance thereof is subject to the
penalties prescribed under the Act.
ANNEXURE
� I
Commodities
identified for exchange by residents living along the border between India and
Myanmar
1.
Mustard/ Rape Seed
2.
Pulses and Beans
3.
Fresh Vegetable
4.
Fruits
5.
Garlic
6.
Onions
7.
Chillies
8.
Spices (excluding nutmeg, mace, cloves, Cassia)
9.
Bamboo
10.
Minor forest products excluding Teak
11.
Betel Nuts and leaves
12.
Food items for local consumption
13.
Tobacco
14.
Tomato
15.
Reed Broom
16.
Sesame
17.
Resin
18.
Corriander Seeds
19.
Soyabean
20.
Roasted Sunflower Seeds
21.
Katha
22.
Ginger
23.
Any other commodities as may be mutually agreed upon between the two
sides.
ANNEXURE
- II
Register
showing details of barter trade transactions with Myanmar Under Indo-Myanmar
Border Trade Agreement (Transactions of value from US$ 1001 to US$ 20,000)
Name
and Address of ___________________ the designated branch __________________ A.D.
Code No._____________ Month ______________Year______________
Imports
Sr.
No.
|
Name
and
Address of
importer
|
Name
& Address of Myanmar supplier
|
Date
of import into
India
|
Mode
of Transport (non-motorised)
|
Bill
of Entry
No.& Date
|
Commodity
|
Invoice
value
US$
|
Remarks
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
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Exports
Sr.
No.
|
Name
and Address of
exporter
|
IE
Code No.
|
Date
of Export
|
GR
Form No.
|
Customs
Sr. No.
|
Mode
of
Transport (non-motorised)
|
Commodity
|
Invoice
Value US$
|
Name
& Address of Myanmar buyer
|
Remarks
|
10
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11
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12
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13
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14
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15
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16
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17
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18
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19
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20
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_________________________(Signature of authorised dealer)
Forwarded
to the Exchange Control Department, Reserve Bank of India, Guwahati In terms of
A.P. (DIR Series) Circular No. 17 dated October 16, 2000
|