Executive Summary:
This Public Notice, No. 7/2015-2020, issued by the Director General of Foreign Trade, notifies Appendix 3E as an annexure, regarding the Services Exports from India Scheme (SEIS). Effective from April 1, 2015, it specifies that certain services with payments received in Indian Rupees can be considered as having received payment in deemed foreign exchange, according to Reserve Bank of India guidelines.
Key Points / Main Content:
* **Appendix 3E Notification:** Notifies Appendix 3E as an annexure to the Public Notice.
* **Effective Date:** This public notice is effective for services rendered from April 1, 2015.
* **Deemed Foreign Exchange:**
* Specifies that payments received in Indian Rupees (INR) for certain services can be treated as deemed foreign exchange receipts.
* This applies when payments are made through agents in India from amounts remittable to overseas principals or from remittances by overseas buyers.
* The services must be rendered in Customs Notified Areas to a foreign liner or procured by a foreign entity in case of services included in rental of vessels with crew.
* **Eligibility for Rewards:** Services considered as having received payment in deemed foreign exchange are eligible for rewards under the Services Exports from India Scheme (SEIS).
* **Exclusions:** Services related to vessel charges for coastal and inland vessels, and cargo charges for coastal cargo, coastal containers, and coastal empty containers, are excluded.
* **List of eligible services includes, but is not limited to:**
* Maritime Transport Services (Rental of vessels with crew; Offshore Support Vessel Services).
* Maintenance and repair of vessels.
* Pushing and towing services (Pilotage, Shifting of vessels, etc.).
* Supporting services for maritime transport (Port dues, Berth hire Services, Anchorage Services, Tug hire, etc.).
* Supply of skilled manpower for marine services.
* Reefer Container Charges.
* Various storage, handling, and transportation services.
* Security Services, Cargo consolidation charges, and other specified handling services.
Impact Analysis:
**Exporters of Specified Services:**
* Impact: Can now claim rewards under the Services Exports from India Scheme (SEIS) for specified services where payments were received in Indian Rupees, as these will be treated as deemed foreign exchange earnings.
* Action Required: Review the list of eligible services and ensure compliance with the conditions to avail benefits under the SEIS.
**Director General of Foreign Trade:**
* Impact: Responsible for implementing and overseeing the updated policy regarding deemed foreign exchange earnings for service exports.
* Action Required: Ensure effective communication and implementation of the policy changes among relevant stakeholders.
Key Entities Referenced
Foreign Trade Policy 2015-2020: A policy document concerning foreign trade, referenced in the context of amendments and power delegations.
Director General of Foreign Trade: An authority figure responsible for issuing notifications related to foreign trade.
Appendix 3E: A specific appendix to a Public Notice related to the Services Exports from India Scheme (SEIS).
Services Exports from India Scheme (SEIS): A scheme related to rewarding service exports from India.
Reserve Bank of India: The central bank of India, mentioned in relation to guidelines for foreign exchange.
Indian Rupees: The currency of India, relevant to the context of payments and foreign exchange regulations.
New Delhi: The location where the public notice was issued
Ministry of Commerce and Industry: The ministry responsible for the Department of Commerce which issued the Public Notice