**Policy Summary:**
This notification, No. FEMA 23R42021RB, issued by the Reserve Bank of India (RBI), Foreign Exchange Department, on January 08, 2021, introduces the Foreign Exchange Management (Export of Goods and Services) Amendment Regulations, 2021. The amendment, enacted under the authority of the Foreign Exchange Management Act, 1999, specifically modifies Regulation 4 of the Principal Regulations, i.e., the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 (Notification No. FEMA 23R2015RB dated January 12, 2016).
The key change pertains to the re-export of leased aircraft, helicopters, engines, and/or auxiliary power units (APUs), either completely or in partially knocked-down condition, repossessed by overseas lessors. Such re-export is permissible if the equipment 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, or following any termination or cancellation of the lease agreement between the lessor and lessee, and is further subject to permission granted by the DGCA/Ministry of Civil Aviation for these exports.
The regulations come into effect from the date of their publication in the Official Gazette.
The notification was issued by R. S. Amar, Chief General Manager, Reserve Bank of India.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for managing the country's monetary policy and foreign exchange reserves.
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 export of goods and services under the Foreign Exchange Management Act.
Foreign Exchange Management Export of Goods and Services Amendment Regulations, 2021: Amendment to the 2015 regulations concerning the export of goods and services under the Foreign Exchange Management Act.
Directorate General of Civil Aviation: A governmental regulatory body in India responsible for the regulation of civil aviation.
Cape Town Convention: An international treaty intended to protect acquirers of movable property.
Ministry of Civil Aviation: The ministry in the Government of India responsible for the formulation of national policies and programmes for the development and regulation of the civil aviation sector in India.
Mumbai, Maharashtra: The location of the central office of the Reserve Bank of India.
RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
Notification No. FEMA 23(R)/(4)/2021-RB January 08, 2021
Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations,
2021
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, 2021.
ii. They shall come into force from the date of their publication in the official Gazette.
2. In the Principal Regulations, in regulation 4, for sub-regulation (ea), the following shall be
substituted, namely:-
“(ea) re-export of leased aircraft/helicopter and/or engines/auxiliary power
units (APUs), either completely or in partially knocked down condition 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’ or any other termination or cancellation of the lease agreement
between the lessor and lessee subject to permission by DGCA/Ministry of Civil
Aviation for such export/s.”
(R. S. Amar)
Chief General Manager
Published in the Official Gazette of Government of
India – Extraordinary – Part-III, Section 4 dated January
11, 2021
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) and subsequently
amended by Notification No. FEMA 23(R)/(1)/2017-RB dated June 23, 2017 published in the Official
Gazette vide G.S.R.No.635(E) dated June 23, 2017, No. FEMA 23(R)/(2)/2019-RB dated December
03, 2019 published in the Official Gazette on December 09, 2019 and No. FEMA 23(R)/(3)/2020-RB
dated March 31, 2020 published in the Official Gazette on March 31, 2020.