| Date: |
14-01-2016
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| Notification No: |
RBI/2015-16/287 A.P. (DIR Series) Circular No. 39
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2015-16/287 |
| Subject: |
Export of Goods and Services – Project Exports
|
RBI/2015-16/287
A.P. (DIR Series) Circular No. 39
January 14, 2016
To
All Category – I Authorised Dealer Banks
Madam/ Sir,
Export of Goods and Services – Project Exports
Attention of Authorised Dealers is invited to Regulation 18 of
Notification No.
FEMA 23/2000-RB dated 3rd May 2000 viz. Foreign Exchange Management (Export of
Goods and Services) Regulations, 2000 in terms of which export of goods or
services on deferred payment terms or in execution of a turnkey project or a
civil construction contract requires prior approval of the approving authority,
which shall consider the proposal in accordance with the guidelines issued by
the Reserve Bank from time to time. Further, attention of Authorized Dealers
(AD) is also invited to
A.P. (DIR Series) Circular No.11 dated July 22, 2014, in
terms of which the structure of Working Group (consisting of representatives
from Exim Bank, ECGC & RBI), which has hitherto been permitted to consider
project exports and deferred service exports proposals for contracts exceeding
USD 100 Million in value has been dispensed with and AD banks / Exim Bank have
been permitted to consider awarding post-award approvals without any monetary
limit and permit subsequent changes in the terms of post award approval within
the relevant FEMA guidelines / regulations. Project and service exporters may
accordingly approach AD banks / Exim Bank based on their commercial judgment.
- As it has been advised by the Government of India that i) the ‘OCCI’
has been renamed as ‘Project Export Promotion Council’ (PEPC) and ii) civil
construction contracts may include turnkey engineering contracts, process
and engineering consultancy services and Project construction items
(excluding steel & Cement) along with civil construction contracts, it has
been decided to make the necessary changes in Memorandum of Instructions on
Project and Service Exports (PEM) accordingly.
- The revised Memorandum of Instructions on Project and Service Exports
(PEM) is enclosed.
- Authorized Dealers may bring the revision in the Memorandum to the notice
of their constituents concerned.
- The directions contained in this circular have been issued under section
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of
1999) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(A. K. Pandey)
Chief General Manager
Encl.: Revised PEM
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