6 April 2020


Notifications & Circulars

Reserve Bank of India

01.04.2020

Banking

Exim Bank's Government of India supported Line of Credit (LoC) of USD 161.36 million to the Government of the Republic of Burundi

MANU/APDR/0014/2020

1. Export-Import Bank of India (Exim Bank) has entered into an agreement dated July 02, 2019 with the Government of the Republic of Burundi, for making available to the latter, Government of India supported Line of Credit (LoC) of USD 161.36 million (USD One Hundred Sixty-One Million Three Hundred Sixty Thousand only) for the purpose of construction of a Parliament building in Gitega (USD 102.27 million) and ministerial buildings in Burundi (USD 59.09 million), in the Republic of Burundi. Under the arrangement, financing of export of eligible goods and services from India, as defined under the agreement, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. Out of the total credit by Exim Bank under the agreement, goods, works and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India, and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India.

2. The Agreement under the LoC is effective from March 18, 2020. Under the LoC, the terminal utilization period is 60 months after the scheduled completion date of the project.

3. Shipments under the LoC shall be declared in Export Declaration Form as per instructions issued by the Reserve Bank from time to time.

4. No agency commission is payable for export under the above LoC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners' Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category-I (AD Category-I) banks may allow such remittance after realization of full eligible value of export subject to compliance with the extant instructions for payment of agency commission.

5. AD Category - I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain complete details of the LoC from the Exim Bank's office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or from their website.

6. The directions contained in this circular have been issued under section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Tags : Exim bank Support LoC

Share :

Top

Reserve Bank of India

01.04.2020

Banking

Export of Goods and Services- Realisation and Repatriation of Export Proceeds-Relaxation

MANU/APDR/0015/2020

1. The Government of India as well as the Reserve Bank has been receiving representations from Exporters Trade bodies to extend the period of realisation of export proceeds in view of the outbreak of pandemic COVID-19. It has, therefore, been decided, in consultation with Government of India, to increase the present period of realization and repatriation to India of the amount representing the full export value of goods or software or services exported, from nine months to fifteen months from the date of export, for the exports made up to or on July 31, 2020.

2. The provisions in regard to period of realization and repatriation to India of the full export value of goods exported to warehouses established outside India remain unchanged.

3. AD Category - I banks may please bring the contents of this Circular to the notice of their constituents concerned.

4. The directions contained in circular have been issued under Section 10(4) and 11(1) of Foreign Exchange Management Act, 1999 (42 of 1999) and without prejudice to permissions / approvals, if any, required under any other law.

Tags : Goods and Services Export Proceeds Relaxation

Share :

Top

Ministry of Finance 

01.04.2020

Insurance

Direction to policy holders whose motor vehicle third party insurance policies fall due for renewal during the lockdown period can make the same on or before 21st April, 2020

MANU/FNSV/0017/2020

In exercise of powers conferred by sub-sections (1) and (5) of section 64VB of the Insurance Act, 1938, read with rule 59 of the Insurance Rules, 1939, the Central Government, having regard to the prevailing situation in the country as a result of Corona Virus disease (COVID-19), lockdown period of twenty-one days starting on and from 25th March, 2020 up to the 14th April, 2020 and in the public interest, hereby directs as under:-

"The policy holders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 14th April, 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal.".

Tags : Direction Policy holders Renewal Lockdown period

Share :

Top

Press Information Bureau

31.03.2020

Civil

India calls for further enhancing affordable access to medicines and facilitating easier movement of health professionals across national borders

MANU/PIBU/0866/2020

India has called for working towards creating a global framework for further enhancing affordable access to medicines for fighting pandemics and facilitating easier movement of health professionals across national borders. In his Interventions at the meeting of the Trade and Investment Ministers of the G20 countries, Minister of Commerce and Industry Shri Piyush Goyal stressed on the need to uphold our multilateral commitments and improve upon its effectiveness to meet current challenges.

Shri Goyal said that despite many challenges, India has been a dependable and affordable source of efficacious and high quality medical and pharma products to nearly 190 countries around the world. "We are confident that with improved regulatory and R&D cooperation, India can further enhance its capabilities to serve the world in crisis like this. We must ensure that suitable instruments stay in place to address these inabilities and preserve the life, livelihood, food and nutritional security of the poorest." he said.

The Minister expressed solidarity with the world and expressed India's support to all frontline health professionals, sanitation workers and all those involved in maintaining essential services to fight the pandemic. He said that the Developing countries and LDCs are particularly vulnerable as they may not have matching resources, infrastructure and technical capacities to face this unprecedented pandemic.

Shri Goyal said that such unprecedented challenges necessitate innovative, collaborative and proactive response from the world. "Our collective act must reflect and uphold the centrality of the rules based multilateral system with development at the centre of any action in trade as well as other areas. We must ensure that the supply of goods, and services most importantly that of vital medicines and food products are not disrupted consistent with national needs. Trade Facilitative responses need to be in place, and wherever required by doing away temporarily, the requirement by authorities like Customs, Banks of producing original documents by importers for various clearances. Additionally, we need to think of a suitable framework under which critical pharma products, medical devices, diagnostic equipment and kits and healthcare professionals can be deployed at short notice across territories under a pre-agreed protocol."

Shri Goyal said "Let us all act together as per our Leaders instructions in fighting the pandemic by safeguarding global economy, addressing international trade disruptions and by enhancing global cooperation to secure fair, stable and rules based global trade from the vagaries of world market and ensure that it acts as an instrument for the well-being and prosperity of one and all, that it enables nations both to look after their own citizens as well as assist others whenever the need arises, that it leads humanity towards a common sustainable future in line with our commitments to SDG 2030."

The Trade and Investment Ministers of the G20 and guest countries have decided to keep their markets open, and ensure smooth and continued operation of the logistics networks. The meeting held through Video-conferencing described COVID-19 pandemic as a global challenge, requiring a coordinated global response. The statement issued at the end of the meeting, called upon the international community to step up cooperation and coordination to protect human life and lay the foundations for a strong economic recovery and a sustainable, balanced, and inclusive growth after this crisis.

The statement said that emergency measures designed to tackle COVID-19, if deemed necessary, must be targeted, proportionate, transparent, and temporary, and that they should not create unnecessary barriers to trade or disruption to global supply chains, and be consistent with WTO rules. "We are actively working to ensure the continued flow of vital medical supplies and equipment, critical agricultural products, and other essential goods and services across borders, for supporting the health of our citizens. Consistent with national requirements, we will take immediate necessary measures to facilitate trade in those essential goods. We will support the availability and accessibility of essential medical supplies and pharmaceuticals at affordable prices, on an equitable basis, where they are most needed, and as quickly as possible, including by encouraging additional production through incentives and targeted investment, according to national circumstances. We will guard against profiteering and unjustified price increases."

Tags : Access Medicines Movement Health professionals National borders

Share :

Top

Press Information Bureau

31.03.2020

Commercial

More than 280 units in SEZs, manufacturing essential items like pharmaceuticals and hospital devices are operational

MANU/PIBU/0865/2020

Special Economic Zones (SEZs) have been a significant contributor to the exports from India over the past years, contributing approximately 18% of India's total exports. During the current financial year 2019-20, the exports from SEZs have already crossed USD 110 Billion. In the present scenario of complete lockdown in the country to curb the spread of COVID-19, SEZs units engaged in manufacturing of essential items like drugs, pharmaceuticals or hospital equipment are operational to ensure these critical supplies are not disrupted.

More than 280 units, engaged in manufacturing of essential items like pharmaceuticals and hospital devices, are operational. Besides, more than 1900 IT/ITES Units have been facilitated to enable their employees to work from home.

Development Commissioners of SEZs have been requested to ensure that there is no hardship to Developer/Co-Developer/Units and no punitive action is taken in cases where compliances like filing of QPR, APR, SOFTEX in case of IT/ITES Units etc, required to be filed by 31st March, 2020 are not completed. Further, It has also been requested that all extensions of LoAs and other compliances are facilitated through electronic mode in a time-bound manner and where it is not possible to grant extension through electronic mode or in cases where a physical meeting is required, It may be ensure that the Developer / Co-developer / Units do not face any hardship due to such expiry of validity during this period of disruption, and ad-hoc interim extension / deferment of the expiry date may be granted without prejudice till 30.06.2020 or further instructions of the Department on the matter, whichever is earlier.

All Development Commissioners are closely coordinating with the units in their jurisdiction for their smooth functioning while ensuring that all necessary precautions of work-place safety, including social distancing are scrupulously adhered.

Tags : SEZs Essential items Operational

Share :

Top

Press Information Bureau

31.03.2020

Customs

Foreign Trade Policy 2015-2020 extended for one year

MANU/PIBU/0867/2020

The Union Commerce and Industry Ministry today announced changes in the Foreign Trade Policy (FTP) of Government of India. The present Policy which came into force on 1st April, 2015, is for 5 years and has validity upto 31st March, 2020. In view of the unprecedented current situation arising out of the pandemic Novel COVID-19, the Govt. has decided to continue relief under various export promotion schemes by granting extension of the existing Foreign Trade Policy by another one year i.e. up to 31st March, 2021. Several other relief measures have also been announced to support trade and industry. Salient points of the changes made in the FTP are as follows:

To provide continuity in the policy regime, the current FTP, valid till 31.03.2020 has been extended till 31.03.2021. Similar extension is made in the related procedures, by extending validity of Hand Book of Procedures.

Benefit under all the Export Promotion Schemes (except SEIS) and other schemes, available as on date, will continue to be available for another 12 months. Decision on continuation of SEIS will be taken and notified subsequently.

Similarly, validity period of the Status Holder Certificates is also extended. This will enable the Status Holders to continue to avail the specified facilities/benefits.

Exemption from payment of IGST and Compensation Cess on the imports made under Advance/EPCG Authorisations and by EOUs etc. has been extended up to 31.03.2021

The scheme for providing "Transport Marketing Assistance on the specified Agricultural Products" is further extended for one year.

Validity period for making imports undervarious duty free import authorizations (AA/DFIA/EPCG) expiring between 01.02.2020 and 31.07.2020, has been allowed automatic extension for another six months from the date of expiry, without requirement of obtaining such endorsement on these authorizations.

Whereever the period to make export is expiring between 01.02.2020 and 31.07.2020 under various authorizations, automatic extension in the export obligation period is allowed for another six months from the date of expiry, without payment of any composition fee. Last dates for applying for various duty credit Scrips (MEIS/SEIS/ROSCTL) and other Authorisations have been extended.

Time lines for imposing late cuts, on the applications which are filed after the prescribed dates, have been relaxed. Validity period of Letter of Permission/Letter of Intent as granted to EOUs, units in STPs/EHTPs/BTPs is further extended up to 31st December, 2020. Last date of filing applications for refund of TED/Drawback, Transport and Marketing Assistance has been extended. Extension in time has been allowed for filing various Reports/Returns etc. under various provisions of the FTP.

Tags : Announcement FTP Extension

Share :

Top

Press Information Bureau

30.03.2020

Civil

No Extension of the Financial Year

MANU/PIBU/0873/2020

There is a fake new circulating in some section of media that the Financial Year has been extended. A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted. There is no extension of the Financial Year.

The Finance ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March, 2020 which relates to certain amendments to the Indian Stamp Act. It pertains to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories. This change was earlier notified to be implemented from 1st April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1st July 2020.

Tags : No Extension Financial Year

Share :