EXPORT CONTROL REGULATIONS RELATING TO EXPORTS

Exporters/importers are required to adhere to certain trade regulations. Apart

from this, they are also required to comply with exchange control
regulations. Exchange control regulations in India are issued by the RBI .
some of the aspects covered by these regulations include the method of
realization of proceeds of exports, purchase and sale of foreign exchange,
maintenance of balance at foreign centers, etc. RBI, ensures strict
compliance of these regulations in order to conserve foreign exchange
reserves. We shall now discuss in detail, the exchange control regulations
governing exports.

EXPORT DECLARATION FROMS

As per FEMA, every person/firm engaged in the business of exports { with

the exception of exports to Nepal and Bhutan } is required to make a
declaration giving the full value of the exported goods on an export
declaration form.
Export declaration forms are of different types depending on the mode of
export.
Precaution to take while filling GR from

1. The inapplicable terms or clauses should be clearly scored out and required
information recorded in the space earmarked for respective items in the
form,
2. Bank’s name and address through which the export proceeds have been or
will be realised should be specified in the space provided,
3. Where exports is being made against a firm order or sale contract, the word
‘consignor’ appearing in the declaration part of the form & the entire clause
{b} thereof should be struck out. If the export is on “ consignment” basis, the
word “ seller” & the entire clause {a} in the declaration part of the form
should be struck off,
4. {a} under the item ‘ analysis of the full export value’ a breakup of the full
export value of goods under F.O.B. value, freight & insurance should be
furnished in all cases, irrespective of term of contract, {b}The F.O.B. value
exclusive of forfaiting discount should be indicated against the sub column
“FOB value”. The forfaiting discount will, however, has to be shown
separately under sub heading “other deductions”. On the basis of Exim Bank
Certificate
5. Trade discount and/or agency commission if payable should invariably be
declared in both the copies of GR/PP form before submission
6. All the entries should be made in the currency of the invoice including
commission, freight etc.
7. Give correct “exporters code number” .
8. In case of exports made under deferred credit arrangement or to joint
ventures aboard against equity participation or under rupee credit
arrangement, the number and date of RBI approval and/or number of and
date of relative AD circular should be recorded at the appropriate place on
the GR form.