1. Chapter No. 3 Page No. 42International FinanceIMPORT / EXPORT CONTROLIMPORTS OF GOODSTODAY, PARTICULARLY THE IMPORT OF GOODS ISNOT UNDER CONTROL UNDER GLOBALIZATION.WHAT GOODS MAY BE IMPORTED, IN WHATQUANTITIES, BY WHOM AND HOW, HOW EXPORTS CANBE PROMOTED, WHAT INCENTIVES SHOULD BEOFFERED TO EXPORTERS etc. ARE LOOKED AFTER BYMINISTRY OF COMMERCE.FINANCIAL ASPECTS i.e. RATE OF EXCHANGE,METHODS OF PAYMENT, PERMITTED CURRENCIES,REMITTANCES AGAINST IMPORTS, etc. ARECONTROLLED BY THE EXCHANGE CONTROL BY THERESERVE BANK OF INDIA.

2. Chapter No. 3 Page No. 42International FinanceIMPORT / EXPORT CONTROL IMPORT TRADE CONTROLADMINISTRATION:DIRECTOR GENERAL OF FOREIGN TRADE (DGFT) AND ITSREGIONAL OFFICES CONTROL OVER THE IMPORT OFGOODS. THE RULES AND PROCEDURES OBSERVED BY THEIMPORT CONTROL ARE CONTAINED IN THE HAND BOOK OFIMPORT-EXPORT PROCEDURES.OBJECTIVES: o THE MOST ESSENTIAL GOODS SUCH AS RAW MATERIALSSPARES etc ARE IMPORTED ON MERITS. o FOREIGN EXCHANGE PAID OUT, AN EQUIVALENT VALUEIN GOODS IS RECEIVED IN INDIA. o THE PRICE OF THE IMPORTS IS PAID OUT IN A PERMITTEDMETHOD OF PAYMENT. 3. Chapter No. 3 Page No. 43International FinanceIMPORT / EXPORT CONTROLIMPORT LICENCEIMPORT LICENCES ARE ISSUED BY THE OFFICE OFTHE DIRECTOR GENERAL OF FOREIGN TRADE.LICENCE CONTAINS:A DESCRIPTION AND VALUE IN RUPEES OF THEGOODS TO BE IMPORTED.THE COUNTRY FROM WHICH IMPORT IS PERMITTED.THE DATE UP TO WHICH THE LICENCE WILL REMAINVALID.IT IS ISSUED IN DUPLICATE , FIRST COPY FORCUSTOMS PURPOSES AND THE SECOND FOREXCHANGE CONTROL PURPOSES. 4. Chapter No. 3 Page No. 43International FinanceIMPORT / EXPORT CONTROLIMPORT LICENCE(EXCEPTION)UNDER IMPORT POLICY CONTROL, THE IMPORT OFSAMPLES IS ALLOWED WITHOUT AN IMPORT LICENCEWHERE---THE VALUE DOES NOT EXCEED RS. 50,000.THE IMPORT IS MADE BY POST OR BY AIR FREIGHT.THE IMPORTER IS A REGISTRED MANUFACTURER-EXPORTER. 5. Chapter No. 3 Page No. 44International FinanceIMPORT / EXPORT CONTROL TYPES OF IMPORT LICENCE IMPORT LICENCE MAY BE ISSUED ON CASH BASIS OR ON DEFERRED PAYMENT BASIS. A DEFERRED PAYMENT LICENCE IS ISSUED ON CONDITION THAT THE PAYMENT AUTHORIZED UNDER THE LICENCE WOULD BE SPREAD OVER A PERIOD OF YEARS. FOR THE IMPORT OF CAPITAL GOODS IT IS AS (CG) AND FOR IMPORT OF HEAVY ELECTRICAL PLANT AS AN (HEP) LICENCE. AS INCENTIVES FOR CERTAIN SPECIFIED EXPORTS TO REGISTERED EXPORTERS SUCH LICENCES ARE KNOWN AS REPLENISHMENT (REP) IMPORT LICENCE. FOR THE IMPORT OF GOODS UNDER FOREIGN LOANS / CREDITS. 6. Chapter No. 3 Page No. 45International FinanceIMPORT / EXPORT CONTROLIMPORTS WITHOUT LICENCEIMPORT UNDER OGL: GOODS UNDER AN OPEN GENERALLICENCE (OGL) DOES NOT REQUIRE ANY IMPORT LICENCE.PRIVATE IMPORTS: IMPORTS BY INDIVIDUALS ORINSTITUTIONS FOR THEIR OWN USE OF CERTAIN ARTICLESSPECIFIED UNDER THE IMPORT TRADE CONTROL ORDER /NOTIFICATION AND THE C.I.F. VALUE DOES NOT EXCEEDTHE PRESCRIBED VALUE.POSTAL IMPORTS: BY INDIVIDUALS, INSTITUTIONS ORHOSPITAL FOR THEIR OWN USE WHERE THE VALUE DOESNOT EXCEED U.S. $ 5000.IMPORTS INTO BONDS: GOODS TO BE EXPORTED ARESOME TIMES IMPORTED AND KEPT IN BONDS.THROUGH REGISTERED COURIER: WHERE VALUE DOESNOT EXCEED THE SPECIFIED LIMIT. 7. Chapter No. 3 Page No. 46International FinanceIMPORT / EXPORT CONTROLEVIDENCE OF IMPORTTHE IMPORTER SHOULD SUBMIT THE EXCHANGE CONTROLCOPIES OF THE BILLS OF ENTRY OR THE POSTAL /COURIER WRAPPERS TO THE AUTHORIZED DEALERTHROUGH WHOM THE REMITTANCE HAS BEEN OR IS TO BEMADE.THE AUTHORIZED DEALER SHOULD ACKNOWLEDGE THERECEIPT OF THE EXCHANGE CONTROL COPIES.THE INTERNAL INSPECTORS / AUDITORS SHOULD MAKE A100 % VERIFICATION OF THE EXCHANGE CONTROL COPIES.THE AUTHORIZED DEALER SHOULD FORWARD TO THERESERVE BANK A STATEMENT AT THE END OF EACHCALENDAR QUARTER IN FORM BEF ALONG WITH THECOPIES OF THE BILL OF ENTRY WITHIN 15 DAYS FROM THEEND OF THE QUARTER. 8. Chapter No. 3 Page No. 47International FinanceIMPORT / EXPORT CONTROLIMPORT OF GOLD, SILVER, JEWELLERY,FOREIGN EXCHANGE, INDIAN CURRENCY GOLD / SILVER: GOLD AND SILVER CAN BE IMPORTED UP TO A CERTAIN QUANTITY BY PERSONS OF INDIAN NATIONALITY OR ORIGIN, SUBJECT TO CONDITIONS AND ON PAYMENT OF THE PRESCRIBED DUTY IN FOREIGN EXCHANGE. IMPORT OF PERSONAL JEWELLERY: PERSONAL JEWELLERY MADE OF GOLD OR SILVER IS ALLOWED UNDER THE CUSTOMS BAGGAGE RULES FREE OR ON PAYMENT OF DUTY.CONT.. 9. Chapter No. 3 Page No. 47International FinanceIMPORT / EXPORT CONTROLIMPORT OF GOLD, SILVER, JEWELLERY,FOREIGN EXCHANGE, INDIAN CURRENCY IMPORT OF SECURITIES: THERE ARE NO RESTRICTIONS ON THE IMPORT INTO INDIA OF ANY SECURITIES WHETHER INDIAN OR FOREIGN. IMPORT OF INDIAN CURRENCY: THE IMPORT OF INDIAN CURRENCY IS PERMITTED UNDER THE RESERVE BANKS NOTIFICATION NO. FERA 81/89 RB DATED. 9-8-89 SUBJECT TO CONDITIONS. IMPORT OF FOREIGN EXCHANGE: THE RESERVE BANK HAS PERMITTED THE IMPORT PROVIDED IT IS DECLARED TO CUSTOMS AUTHORITIES ON ARRIVAL THE PARTICULARS OF ALL SUCH FOREIGN CURRENCY BROUGHT ON THE CURRENCY DECLARATION FORM CDF. 10. Chapter No. 3 Page No. 48International FinanceIMPORT / EXPORT CONTROLIMPORTS UNDER FOREIGN CURRENCY LOAN / CREDITANY FOREIGN CURRENCY LOAN OR CREDIT, SUCH ASBUYERS CREDIT, SUPPLIERS CREDIT, OR A LINE OFCREDIT GRANTED BY A FIRM, COMPANY, LENDINGINSTITUTION OR BANK FOR FINANCING IMPORT OFGOODS, TECHNOLOGY ETC, OR FOR ANY OTHERPURPOSE OTHER THAN EXCEPTING CERTAINCATEGORIES REQUIRES PRIOR PERMISSION OF THEGOVERNMENT OF INDIA AS WELL AS OF THE RESERVEBANK. 11. Chapter No. 3 Page No. 50International FinanceIMPORT / EXPORT CONTROLACQUISITION OF FOREIGN CURRENCY / EXCHANGE a. RESERVE BANK PERMITS ANY PERSON TO ACQUIREFOREIGN EXCHANGE.BY WAY OF SCHOLARSHIP OR STIPEND FROM ACHARITABLE TRUST OR EDUCATIONAL INSTITUTION ORFOUNDATION OR FROM A FOREIGN GOVERNMENT TOENABLE HIM TO UNDERGO A COURSE OF STUDY ORTRAINING OR BOTH.BY WAY OF INCOME FROM ASSETS HELD OR BY WAY OFINHERITANCE, SETTLEMENT OR GIFT.BY WAY OF REMUNERATION FOR SERVICES RENDEREDOR IN SETTLEMENT OF ANY LAWFUL OBLIGATION.CONT. 12. Chapter No. 3 Page No. 50International FinanceIMPORT / EXPORT CONTROLACQUISITION OF FOREIGN CURRENCY / EXCHANGE b. THE PROVISION WILL NOT APPLY TO PERSONS OUTSIDEINDIA IN RESPECT OF FOREIGN EXCHANGE EARNED BYTHEM BY WAY OF REMUNERATION FOR SERVICESRENDERED OUTSIDE INDIA UNTIL THEY CEASE TO BERESIDENT OUTSIDE INDIA. c. WHEN SUCH FOREIGN EXCHANGE IS BROUGHT OR SENTTO INDIA THE PERSON BRINGING OR THE PERSONRECEIVING IT, SHALL , BEFORE THE EXPIRY OF 7 DAYSFROM THE DATE WHEN IT IS BROUGHT OR RECEIVED,OFFER IT FOR SALE TO AN AUTHORIZED DEALER. 13. Chapter No. 3 Page No. 50International FinanceIMPORT / EXPORT CONTROLOPENING OF L / CFOR CUSTOMERS ONLY: A LETTER OF CREDIT MAY BEOPENED BY A BANKER ON BEHALF OF A CUSTOMER WHOMAINTAINS AN ACCOUNT WITH HIM AND KNOWN TO BEPARTICIPATING IN THE PARTICULAR TRADE.FOR IMPORTS UNDER OGL: WHERE THE GOODS ARECOVERED BY AN OPEN GENERAL LICENCE.FOR IMPORTS UNDER LICENCE: WHERE THE GOODS ARETO BE IMPORTED AGAINST A SPECIFIC IMPORT LICENCEON PRODUCTION OF THE FOR EXCHANGE CONTROLPURPOSE COPY OF THE IMPORT LICENCE. CONT. 14. Chapter No. 3 Page No. 52International FinanceIMPORT / EXPORT CONTROLOPENING OF L/CAMOUNT: A LETTER OF CREDIT FOR THE IMPORT OFGOODS COVERED BY AN OGL MAY BE FOR ANY AMOUNT,WHILE AN L/C FOR THE IMPORT OF GOODS AGAINST ANIMPORT LICENCE MUST NOT BE FOR AN AMOUNTEXCEEDING THE VALUE OF THE GOODS SPECIFIED IN THELICENCE.PERIOD: FOR IMPORTS UNDER OGL, THE PERIOD OF THEL/C MUST NOT BE LONGER THAN THE VALIDITY PERIODOF THE RELATIVE OGL. FOR L/C OPENED UNDER ANIMPORT LICENCE, THE DATE OF EXPIRY MUST NOT BELATER THAN 75 DAYS.PAYMENT: THE LETTER OF CREDIT MUST PROVIDE FORPAYMENT ONLY AGAINST THE DELIVERY OF SHIPPINGDOCUMENTS. CONT. 15. Chapter No. 3 Page No. 53International FinanceIMPORT / EXPORT CONTROLOPENING OF L/CUNDER AN f.o.b. CONTRACT FREIGHT PAID BY THEEXPORTER IS RECOVERABLE AND THE SAME SHOULD BESTIPULATED IN THE L/C.WHERE AN L/C IS ESTABLISHED FOR THE IMPORT FORGOODS FROM TWO OR MORE COUNTRIES UNDER ASPECIFIC LICENCE, THE AMOUNT OF CREDIT SHOULD BESTATED SEPARATELY.THE OPENING OF AN L/C FOR IMPORT INTO BOND FOREXPORTS REQUIRES THE PRIOR APPROVAL OF THERESERVE BANK. CONT. 16. Chapter No. 3 Page No. 53International FinanceIMPORT / EXPORT CONTROLOPENING OF L/CA LETTER OF CREDIT AGAINST AN IMPORT LICENCEISSUED FOR THE IMPORT OF GOODS UNDER A FOREIGNLOAN / CREDIT MAY BE OPENED WITHOUT REFERENCE TOTHE RESERVE BANK.MARGIN: THE MARGIN ACCEPTED AGAINST A LETTER OFCREDIT MUST BE RETAINED IN RUPEE AND NOTCONVERTED INTO ANY FOREIGN CURRENCY UNTIL THEBILLS ARE DRAWN.PURCHASE OF SHIP: IF THE L/C IS AGAINST THE PURCHASEOF A SHIP FROM ABROAD THE BANKER SHOULD VERIFYTHAT THE PURCHASER HAS OBTAINED THE APPROVAL OFTHE MINISTRY OF TRANSPORT, GOVT. OF INDIA. 17. Chapter No. 3 Page No. 53International FinanceIMPORT / EXPORT CONTROLRESTRICTIONSNO OPENING DURING GRACE PERIOD: NO L /C SHOULD BEOPENED DURING THE GRACE PERIOD OF THE LICENCE.REVOLUTION CREDIT: THE OPENING OF A REVOLVINGCREDIT FOR IMPORTS IS NOT PERMISSIBLE.BENEFICIARY: AN L/C MAY BE OPENED ONLY IN FAVOUR OFTHE MANUFACTURER, SUPPLIER OR SHIPPER OF THEGOODS OR IN FAVOUR OF AN OVERSEAS BUYING AGENTOF THE IMPORTER PROVIDED THE RESERVE BANKSPERMISSION HAS ALREADY OBTAINED.NO READY EXCHANGE : THE OPENING OF A CASHLETTER OF CREDIT INVOLVING AN IMMEDIATE SALE OFREADY FOREIGN EXCHANGE AGAINST SHIPMENT TO BEMADE AT A FUTURE DATE IS NOT PERMISSIBLE. CONT. 18. Chapter No. 3 Page No. 54International FinanceIMPORT / EXPORT CONTROLRESTRICTIONSUNDER CONTRACT WITH GOLD CLAUSE: A LETTER OFCREDIT FOR THE IMPORT UNDER A CONTRACTCONTAINING A GOLD CLAUSE FROM ANY COUNTRY INTHE FORMER BILATERAL GROUP OTHER THAN ROMANIA,POLAND AND CZECK AND SLOVAKIA , MAY BE OPENEDONLY WITH THE PRIOR APPROVAL OF THE RESERVE BANK.ON EXPIRY OF LICENCE: IF AN IMPORT LICENCE EXPIRESBEFORE SHIPMENT IS MADE, THE LETTER OF CREDITSHOULD NOT BE EXTENDED UNTIL THE LICENCE ISREVALIDATED.ANOTHERS GUARANTEE / MARGIN: NO CREDIT SHOULD BEESTABLISHED AGAINST AN IMPORT LICENCE, ON BEHALFOF THE HOLDER OF THE LICENCE AGAINST A GUARANTEEOFFERED OR MARGIN DEPOSITED BY A PERSON OTHERTHAN THE CUSTOMER IN WHOSE NAME THE CREDIT HASTO BE OPENED. 19. Chapter No. 3 Page No. 55 International FinanceIMPORT / EXPORT CONTROLEXPORT CONTROL THE EXPORT OF GOODS EXCEPT TO NEPAL AND BHUTAN IS UNDER CONTROL. THE MAIN PURPOSES OF CONTROL ARE:1. TO PREVENT THE EXPORT OF THE GOODS WHICH ARE ESSENTIAL FOR THE DEVELOPMENT AND OR MAINTENANCE OF THE COUNTRYS ECONOMY.2. TO ENSURE THAT THE FULL VALUE OF THE EXPORTED GOODS IS RECEIVED IN INDIA WITHIN THE TIME LIMIT AND IN A PERMITTED METHOD OF PAYMENT. 20. Chapter No. 3 Page No. 56International FinanceIMPORT / EXPORT CONTROLEXPORT TRADE NOTICESTHE OFFICE OF THE DIRECTOR GENERAL OF FOREIGNTRADE ISSUES EXPORT NOTICES:PROHIBITING THE EXPORT OF CERTAIN COMMODITIES.MAKING THE EXPORT OF CERTAIN COMMODITIESSUBJECT TO LICENCE FROM THE EXPORT TRADECONTROL.PRESCRIBING THE MINIMUM EXPORT PRICES FORSOME COMMODITIES AND / OR THE METHODS BYWHICH PAYMENT FOR THE EXPORT OF SOMECOMMODITIES SHOULD BE RECEIVED.REGULATING THE EXPORT. 21. Chapter No. 3 Page No. 56International FinanceIMPORT / EXPORT CONTROLEXPORT OF GOLD, etc.GOLD / SECURITIES: THE EXPORT OF GOLD FROM INDIATO ANY DESTINATION, OR TAKING OR SENDING OFSECURITIES TO ANY PLACE OUTSIDE INDIA, REQUIRESRESERVE BANKS PERMISSION.CURRENCY NOTES / FOREIGN EXCHANGE: NO PERSONCAN, EXCEPT WITH THE SPECIAL PERMISSION OF THERESERVE BANK TAKE OR SEND OUT OF INDIA ANY INDIANCURRENCY OR FOREIGN EXCHANGE OTHER THAN THEFOREIGN EXCHANGE OBTAINED BY HIM FROM ANAUTHORIZED AGENT.THE RESERVE BANK PERMITS ANY PERSON RESIDENT ININDIA TO TAKE OR SEND OUT OF INDIA TO ANY COUNTRYOTHER THAN NEPAL , CURRENCY NOTES UP TO RS. 5000PER PERSON AT ANY TIME.CONT. 22. Chapter No. 3 Page No. 57International FinanceIMPORT / EXPORT CONTROLEXPORT OF GOLD, etc.UNITS OF UTI: THE UNIT TRUST OF INDIA HAS BEENGRANTED GENERAL PERMISSION BY THE RESERVEBANK TO EXPORT CERTIFICATES COVERING UNITSPURCHASED BY NON-RESIDENT INVESTORS OUT OFFOREIGN EXCHANGE REMITTANCES.COMPUTER SOFTWARE: COMPUTER SOFTWARE MAYBE EXPORTED EITHER IN PHYSICAL FORM ORNON-PHYSICAL FORM. 23. Chapter No. 3 Page No. 58International FinanceIMPORT / EXPORT CONTROLPRESCRIBED PERIOD FOR REALIZATION FOR EXPORTSTHE PERIOD PRESCRIBED FOR REALIZATION OF THEPROCEEDS OF EXPORTS TO ALL OTHER COUNTRIES ISSIX MONTHS FROM THE DATE OF SHIPMENT. THERESERVE BANK MAY EXTEND THE SAID PERIOD OFTHREE TO SIX MONTHS.EXPORTS MADE BY A UNIT SITUATED IN A SPECIALECONOMIC ZONE, THE EXPORT PROCEEDS SHALL BEREALIZED AND REPATRIATED WITHIN 12 MONTHSFROM THE DATE OF EXPORT.CONT. 24. Chapter No. 3 Page No. 59International FinanceIMPORT / EXPORT CONTROLPRESCRIBED PERIOD FOR REALIZATION FOR EXPORTSIN CASE, WHERE AN EXPORTER HAS NOT BEENABLE TO REALIZE PROCEEDS OF A SHIPMENT MADEWITHIN THE PRESCRIBED PERIOD AND EXPECTS TOREALIZE IF EXTENSION IS ALLOWED, NECESSARYAPPLICATION IN FORM ETX SHOULD BE MADE TO RBITHROUGH HIS BANKERS.CONT. 25. Chapter No. 3 Page No. 59International FinanceIMPORT / EXPORT CONTROLPRESCRIBED PERIOD FOR REALIZATION FOR EXPORTSEXPORT PROCEEDS ARE EXPECTED TO BE REALIZED ASPER THE ORIGINAL CONTRACTED TERMS BUT IF THEEXPORT BILL IS NOT REALIZED WITHIN THE ORIGINALCONTRACTED TERMS, IT WILL BE TERMED AS OVERDUEEXPORT BILL AND IS SUBJECTED TO CRYSTALLIZATIONAS PER FEDAI REGULATIONS.THE PERIOD OF REALIZATION FOR EXPORTS UNDERDEFERRED PAYMENTS ARRANGEMENT MAY BEEXTENDED BY THE RESERVE BANK TO - 2 YEARS IN CASEOF CONSUMER DURABLES, 11 YEARS IN CASE OFCAPITAL AND PRODUCER GOODS AND12 YEARS IN CASEOF TURNKEY PROJECTS. 26. Chapter No. 3 Page No. 60International FinanceIMPORT / EXPORT CONTROLEXEMPTED CATEGORIESDECLARATION ON A PRESCRIBED FORM REGARDINGTHE REALIZATION OF THE VALUE OF EXPORTS IS NOTNECESSARY.TRADE SAMPLES OF GOODS AND PUBLICITY.PERSONAL EFFECTS OF TRAVELERS.SHIPS STORES TRANSSHIPMENT CARGO AND GOODSUNDER CENTRAL GOVT.ORDER FOR DEFENCEREQUIREMENTS.GOODS EXPORTED UNDER ORDER OF MILITARY,NAVAL AND AIR FORCE. CONT. 27. Chapter No. 3 Page No. 60International FinanceIMPORT / EXPORT CONTROLEXEMPTED CATEGORIESGOODS OR SOFTWARE ACCOMPANIED BY A DECLARATIONTHAT THE VALUE DOES NOT EXCEED RS. 25,000.GOODS IMPORTED FREE OF COST ON RE-EXPORT BASIS.AIRCRAFT OR AIRCRAFT ENGINES AND SPARE PARTS FOROVERHAULING AND /OR REPAIRS WITHIN A PERIOD OF6 MONTHS FROM THE DATE OF THEIR EXPORT.GOODS NOT EXCEEDING US $ 1000 OR ITS EQUIVALENT INVALUE PER TRANSACTION EXPORTED TO MYANMARUNDER BARTER TRADE AGREEMENT BETWEEN THECENTRAL GOVT. AND THE GOVT. OF MYANMAR.CONT. 28. Chapter No. 3 Page No. 60International FinanceIMPORT / EXPORT CONTROLEXEMPTED CATEGORIESFOLLOWING GOODS WHICH ARE PERMITTED TO BERE-EXPORTED:IMPORTED GOODS FOUND TO BE DEFECTIVE.GOODS IMPORTED FROM FOREIGN SUPPLIERS /COLLABORATION ON LOAN BASIS.GOODS IMPORTED FOUND SURPLUS AFTER PRODUCTIONOPERATIONS.REPLACEMENT GOODS EXPORTED FREE OF CHARGE INACCORDANCE WITH THE PROVISION OF EXIM POLICY.GOODS SENT FOR TESTING OUTSIDE INDIA.DEFECTIVE GOODS SENT FOR REPAIRS OUTSIDE INDIA.EXPORTS PERMITTED BY THE RESERVE BANK . 29. Chapter No. 3 Page No. 64International FinanceIMPORT / EXPORT CONTROL EXCHANGE CONTROL REGULATIONS VIS--VIS NEPAL AND BHUTANa) FOR TRANSACTIONS IN INDIAN RUPEES THE UNDER NOTED PERSONS, FIRMS, COMPANIES RESIDENTS IN NEPAL OR BHUTAN ARE TREATED AS RESIDENTS IN INDIA.b) RUPEE ACCOUNTS THE AUTHORIZED DEALER IN INDIA OF PERSONS, FIRMS COMPANIES etc ARE REGARDED AS RESIDENTS ACCOUNTS.c) EXPORT OF GOODS FROM INDIA TO NEPAL OR BHUTAN IS NOT SUBJECT TO DECLARATION IN GR / PP FORM.CONT 30. Chapter No. 3 Page No. 65International FinanceIMPORT / EXPORT CONTROL EXCHANGE CONTROL REGULATIONS VIS--VIS NEPAL AND BHUTANd) RUPEE TRANSFERS FROM ACCOUNTS IN INDIA OF INDIAN, NEPALESE OR BHUTANESE RESIDENTS IN NEPAL OR BHUTAN AS WELL AS INDIAN, NEPALESE OR BHUTANESE FIRMS, COMPANIES FUNCTIONING IN THESE COUNTRIES AGAINST EXPORTS TO THESE COUNTRIES FROM INDIA CAN BE MADE FREELY.e) PAYMENTS BETWEEN NEPAL AND INDIA ARE NOT ELIGIBLE FOR SETTLEMENT THROUGH ASIAN CLEARING UNION.f) PAYMENTS FROM INDIA TO SUPPLIERS IN THIRD COUNTRIES AGAINST IMPORTS INTO NEPAL OR BHUTAN ARE NOT PERMITTED.CONT. 31. Chapter No. 3 Page No. 66International FinanceIMPORT / EXPORT CONTROL EXCHANGE CONTROL REGULATIONS VIS--VIS NEPAL AND BHUTANg) FREIGHT ON EXPORTS FROM NEPAL OR BHUTAN TO FOREIGN COUNTRIES THROUGH AN INDIAN PORT MAY BE FREELY RECEIVED IN INDIAN RUPEES WHERE SHIPMENT IS MADE BY AN INDIAN, NEPALESE OR BHUTANESE CARRIER, AND FREIGHT ON IMPORTS FROM COUNTRIES OUTSIDE INDIA IF PAYABLE AT DESTINATION AT AN INDIAN PORT.h) PAYMENTS OF CLAIMS AGAINST INSURANCE POLICIES, MARINE OR NON-MARINE MAY BE MADE IN INDIAN RUPEES TO INDIANS, NEPALESE, BHUTANESE RESIDENTS IN NEPAL OR BHUTAN. PAYMENT IN FOREIGN CURRENCY TOWARDS CLAIMS UNDER INSURANCE POLICIES IS NOT PERMISSIBLE WITHOUT APPROVAL OF THE RESERVE BANK.CONT. 32. Chapter No. 3 Page No. 66International FinanceIMPORT / EXPORT CONTROL EXCHANGE CONTROL REGULATIONS VIS--VIS NEPAL AND BHUTANi) NEPALESE NATIONALS RESIDENTS BUT NOT PERMANENTLY RESIDENT IN INDIA ARE NOT ELIGIBLE FOR THE BENEFIT OF BASIC TRAVEL QUOTA.j) EXCHANGE CONTROL IN NEPAL DOES NOT PERMIT TRANSIT PASSENGERS AND FOREIGN TOURISTS TO TAKE INTO NEPAL RUPEE INSTRUMENTS ISSUED TO SUCH PERSONS SHOULD BE ENDORSED NOT VALID FOR NEGOTIATION IN NEPAL.k) ANY PERSON CAN BRING WITH HIM FROM NEPAL CURRENCY NOTES OF THE GOVT. OF INDIA OF DENOMINATION NOT ABOVE RS. 100.CONT. 33. Chapter No. 3 Page No. 66International FinanceIMPORT / EXPORT CONTROL EXCHANGE CONTROL REGULATIONS VIS--VIS NEPAL AND BHUTANl) OBLIGATION TO SURRENDER FOREIGN CURRENCY ON ARRIVING IN INDIA TO AN AUTHORIZED AGENT IS NOT APPLICABLE TO CURRENCIES OF NEPAL AND BHUTAN.m) SETTING UP OF JOINT VENTURES IN NEPAL BY RESIDENTS IN INDIA REQUIRES APPROVAL OF THE RESERVE BANK INCASE ANY REMITTANCE OF FOREIGN EXCHANGE OR EXPORT OF GOODS ARE INVOLVED.n) ISSUE AND TRANSFER OF INDIAN RUPEE SHARES AND SECURITIES TO RESIDENTS OF FIRMS IN NEPAL REQUIRES PERMISSION FROM RESERVE BANK.CONT. 34. Chapter No. 3 Page No. 67International FinanceIMPORT / EXPORT CONTROL EXCHANGE CONTROL REGULATIONS VIS--VIS NEPAL AND BHUTANo) INDIAN NATIONALS RESIDENT IN INDIA AND FIRM/ COMPANIES REGISTERED / INCORPORATED IN INDIA ARE REQUIRED TO OBTAIN PERMISSION OF THE RESERVE BANK TO ACQUIRE, HOLD, TRANSFER OR DISPOSE BY SALE, MORTGAGE, LEASE FOR A PERIOD EXCEEDING 5 YEARS, GIFT, SETTLEMENT OR OTHERWISE, ANY IMMOVABLE PROPERTY SITUATED IN NEPAL OR VICE VERSA EVEN THOUGH THE TRANSACTION IS SETTLED IN INDIAN RUPEES. 35. Chapter No. 3 Page No. 67International FinanceIMPORT / EXPORT CONTROLTHE 2002-2007 EXIM POLICYTHE LIBERALIZED EXPORT-IMPORT (EXIM) POLICY THOUGHIT SUPERSEDES THE PREVIOUS 1992-97 POLICY, ISVIRTUALLY AN EXTENSION OF THE SAME. THE PREVIOUSPOLICY FOCUSED ON LIBERALIZATION, OPENNESS,TRANSPARENCY AND GLOBALIZATION AND PROVIDEDINCENTIVES FOR GROWTH OF EXPORTS AND SIMPLIFIEDPROCEDURES.THE MOST IMPORTANT FEATURES OF THE POLICY IS THATAS MANY AS 542 ITEMS (18% OF TOTAL) HAVE BEENREMOVED FROM RESTRICTED LIST OF WHICH 392 HAVEBEEN PLACED ON THE FREE LIST AND OTHER 150 ITEMSON SPECIAL IMPORT LICENCE (SIL) LIST AND 60 ITEM HAVEBEEN TRANSFERRED FROM SIL TO FREE LIST. 36. Chapter No. 3 Page No. 68International FinanceIMPORT / EXPORT CONTROLTHE 2002-2007 EXIM POLICY(NOTE WORTHY IMPROVEMENTS)THE DUTY PAYABLE ON IMPORT OF CAPITAL GOODSUNDER THE EXPORT PROMOTION CAPITAL GOODS (EPCG)SCHEME HAS BEEN REDUCED FROM 15% TO 10%.THE BENEFIT OF THE EPCG SCHEME HAS BEEN EXTENDEDTO SERVICES INDUSTRIES.THE THRESHOLD LEVEL UNDER THE ZERO DUTY IMPORTSCHEME HAS BEEN REDUCED FROM RS. 20 CRORES TO RS.5 CRORES FOR AGRICULTURE AND ALLIED SECTORS.PROVISION HAS BEEN MADE FOR GIVING DOUBLEWEIGHTAGE TO AGRO EXPORTS. 37. Chapter No. 3 Page No. 69International FinanceIMPORT / EXPORT CONTROLTHE 2002-2007 EXIM POLICY(NOTE WORTHY IMPROVEMENTS)DOMESTIC SALES FOR EOUs AND EPZs IN AGRICULTUREAND ALLIED SECTORS HAVE BEEN LIBERALIZED SO THATTHE UNITS CAN SELL 50% OF THE PRODUCTION.AGENCIES FOR STOCKING GOLD TO FACILITATE EXPORTSHAS BEEN INCREASED.THE SOFTWARE SECTOR HAS BEEN GIVEN A BOOST.THE INITIAL VALIDITY PERIOD OF DUTY-FREE LICENCE ANDEXPORT OBLIGATION IS BEING EXTENDED FROM 12MONTHS TO 18 MONTHS WITH PROVISION FOR A FURTHEREXTENSION OF THE EXPORT OBLIGATION PERIOD BY6 MONTHS. 38. LikeusonFacebook: p // /http://www.facebook.com/welearnindiaFollowusonTwitter:http://twitter.com/WeLearnIndiahttp://twitter com/WeLearnIndiaWatchinformativevideosonYoutube:http://www.youtube.com/WelingkarDLP