**Summary:**
This circular, A.P. DIR Series Circular No. 53, issued by the Reserve Bank of India (RBI/2015-16/332) on March 03, 2016, addresses all Category I Authorised Dealer Banks regarding revisions to the Export Declaration Form (EDF) waiver for the export of goods free of cost. It modifies the conditions under which Status Holders can export freely exportable items on a free-of-cost basis for export promotion.
The circular refers to A.P. DIR Series Circular No. 94 dated April 26, 2003, which initially enabled GR waivers for free-of-cost exports. Previously, Status Holders were entitled to export freely exportable items on a free-of-cost basis for export promotion, with an annual limit of INR 10 lakh or 2% of the average annual export realization during the preceding three licensing years, whichever was higher.
Government of India Notification No. 9/2015-2020 dated June 4, 2015, amended this provision. The revised norm stipulates that Status Holders are now entitled to export freely exportable items on a free-of-cost basis for export promotion, subject to an annual limit of INR 10 lakh or 2% of the average annual export realization during the preceding three licensing years, whichever is *lower*.
Authorised Dealer Category I banks are instructed to consider requests from Status Holder exporters for EDF waivers based on this revised norm. The circular clarifies that these directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to other applicable laws.
A.K. Pandey, Chief General Manager, is the contact person.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Mumbai, Maharashtra: The city in India where the Reserve Bank of India is located.
A.P. DIR Series Circular No. 94: A circular issued by the Reserve Bank of India related to foreign exchange regulations.
Foreign Trade Policy 2004-2009: A government policy document outlining guidelines for international trade.
Handbook of Procedures Vol-I: A supplementary document providing detailed procedures related to the Foreign Trade Policy.
Status Holders: Exporters recognized by the Government of India for their export performance.
Export Declaration Form EDF: A form required for reporting exports, subject to waivers under certain conditions.
FEMA, 1999: Foreign Exchange Management Act, 1999, a law governing foreign exchange transactions in India.
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2015-16/ 332 March 03, 2016
A.P. (DIR Series) Circular No.53
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Grant of EDF Waiver for Export of Goods Free of Cost
Attention of Authorised Dealers is invited to A.P. (DIR Series) Circular No. 94 dated
April 26, 2003 in terms of which GR waiver to exporters for export of goods free of cost
had been enabled. The facility had been extended to the Status Holders vide para
2.52.1 of Handbook of Procedures- Vol-I of Foreign Trade Policy 2004-2009, in terms of
which Status Holders shall be entitled to export freely exportable items on free of cost
basis for export promotion subject to an annual limit of Rs 10 lakh or 2% of average
annual export realization during preceding three licensing years, whichever is higher.
2. Government of India vide amendment Notification No. 9/2015-2020 dated June 4,
2015, has notified that the Status Holders shall be entitled to export freely exportable
items on free of cost basis for export promotion subject to an annual limit of Rs 10 lakh
or 2% of average annual export realization during preceding three licensing years
whichever is lower. AD Category – I banks may, therefore, consider requests from
Status Holder exporters for grant of Export Declaration Form (EDF) waiver, for export of
goods free of cost based on the revised norm.
3. Authorised Dealers may bring the contents of this circular to the notice of their
constituents concerned.
4. The directions contained in this circular have been issued under Section 10(4) and
Section 11(1) of the 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