**Summary:**
This notification, issued by the Reserve Bank of India (RBI), Foreign Exchange Department, on December 09, 2019, introduces the Foreign Exchange Management (Export of Goods and Services) Amendment Regulations, 2019, via Notification No. FEMA 23(R)/2019-RB. The amendment, enacted under the powers conferred by the Foreign Exchange Management Act, 1999, modifies the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015, Notification No. FEMA 23/R/2015-RB dated January 12, 2016.
The key change involves inserting a new sub-regulation (ea) into regulation 4 of the Principal Regulations. This addition pertains to the re-export of leased aircraft, helicopters, engines, and/or auxiliary power units (APUs) that have been repossessed by overseas lessors. Such re-exports are permitted if the aircraft/helicopter has been duly deregistered by the Directorate General of Civil Aviation (DGCA) at the request of the Irrevocable Deregistration and Export Request Authorisation (IDERA) holder under the Cape Town Convention, and are subject to permission from the DGCA/Ministry of Civil Aviation.
These regulations took effect on the date of their publication in the Official Gazette. The notification was published in the Official Gazette of Government of India, Extraordinary, Part III, Section 4, dated December 09, 2019. Contact information for inquiries related to this notification is R.K.Moolchandani, Chief General Manager, Reserve Bank of India.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Export of Goods Services Regulations, 2015: Regulations pertaining to the management of foreign exchange related to the export of goods and services as defined by the Reserve Bank of India.
Foreign Exchange Management Export of Goods and Services Amendment Regulations, 2019: Amendments to the 2015 regulations concerning foreign exchange management related to the export of goods and services.
Directorate General of Civil Aviation: A regulatory body of the Government of India which regulates civil aviation.
Cape Town Convention: An international treaty that establishes international standards for the protection of creditors' rights in movable property, specifically aircraft, railway rolling stock and space assets.
Ministry of Civil Aviation: A ministry in the Government of India responsible for the formulation of policies and programmes for the development and regulation of the civil aviation sector in the country.
R.K.Moolchandani: Chief General Manager at Reserve Bank of India.
RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
Notification No. FEMA 23(R)/(2)/2019-RB December 09, 2019
Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2019
In exercise of the powers conferred by clause (a) of sub-section (1), sub-section (3) of section 7 and clause (b) of
sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of
India makes the following amendments in the Foreign Exchange Management (Export of Goods & Services)
Regulations, 2015 [Notification No. FEMA 23(R)/2015- RB dated January 12, 2016] (hereinafter referred to as 'the
Principal Regulations'), namely:
1. Short title and commencement: -
i. These Regulations may be called the Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2019.
ii. They shall come into force from the date of their publication in the official Gazette.
2. In the Principal Regulations, in regulation 4, after sub-regulation (e), the following shall be inserted, namely :-
“(ea) re-export of leased aircraft/ helicopter and/or engines/auxiliary power units
(APUs) re-possessed by overseas lessor and duly de-registered by the Directorate
General of Civil Aviation (DGCA) on the request of Irrevocable Deregistration and
Export Request Authorisation (IDERA) holder under ‘Cape Town Convention’ subject
to permission by DGCA/Ministry of Civil Aviation for such export/s.”
(R.K.Moolchandani)
Chief General Manager
Foot Note: - The Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 [Notification
No. FEMA 23(R)/2015- RB dated January 12, 2016] were published in the Official Gazette vide G.S.R.No.19 (E)
dated January 12, 2016 in Part II, Section 3, sub-Section (i), amended vide G.S.R. No. 635(E) dated June 23, 2017
and subsequently amended as under:
Published in the Official Gazette of
Government of India – Extraordinary –
Part-III, Section 4 dated December 09,
2019.