What changed
RBI issued a single Master Circular consolidating all existing instructions on export of goods and services under FEMA 1999. The circular is organized into five parts covering general guidelines, operational guidelines for AD banks, annexures, and a list of underlying circulars. It includes a sunset clause, standing withdrawn on July 1, 2008, to be replaced by an updated version.
What it means for you
Banks now have a single reference document for export-related compliance, reducing the need to track multiple circulars. AD banks must ensure all export transactions conform to the consolidated guidelines, including procedures for GR/SDF/PP/SOFTEX forms, write-offs, and follow-up of overdue bills. The one-year validity means banks should prepare for annual updates.
What you must do
- Review and implement the consolidated export guidelines from this Master Circular for all foreign exchange transactions.
- Ensure AD bank staff are trained on the updated procedures for GR/SDF/PP/SOFTEX forms and operational guidelines.
- Monitor the sunset clause and prepare for the replacement circular by July 1, 2008.
- Update internal compliance checklists to align with the circular's parts on general and operational guidelines.
Who it affects
All banks authorized to deal in foreign exchange, Exporters and importers dealing with goods and services, AD bank operational staff handling export documentation, Compliance and risk management teams in banks
What is the sunset clause in this Master Circular?
The circular has a one-year sunset clause, meaning it will stand withdrawn on July 1, 2008, and be replaced by an updated Master Circular on the same subject.
Which regulations govern the export of goods and services under this circular?
Exports are governed by Section 7 of FEMA 1999, read with Notification No. GSR 381(E) dated May 3, 2000, and FEMA Notification 23/RB-2000 dated May 3, 2000, as amended.
What are the key parts of this Master Circular?
The circular is divided into five parts: Introduction, General guidelines for exports, Operational guidelines for AD Banks, Annexures (notifications and forms), and a list of consolidated circulars.