Export of Goods and Services

Export of Goods and Services

Q 21. What are the obligations of an exporter of goods and services out of India? Explain.

J4.ns .

Obligations of Exporters
Section 7 deals with export of goods and services. Sub-section (1) of Section 7 provides that every exporter of goods shall furnish to the Reserve Bank or to such other authority a declaration, in such form and in such manner as may be specified, containing true and correct material particulars including the amount representing th~ full export value of the goods. Every exporter has to furnish such other information as may be required by the Reserve Bank. This provision is made for the purpose of ensuring that the export value of goods is received without any delay.
Sub-section (3) of Section 7 provides that every exporter of services shall,furnish to the Reserve Bank or to such other authority a declaration in such form and in such manner as may be specified by the regulations made under the FEMA containing true and correct material particulars in relation to payment for such services.
Q 22. State the provisions of FEMA and the regulations made thereunder with respect to regulation of export of goods and services out of India.

J4.ns .

Regulation of Exports
The Reserve Bank has framed the Foreign Exchange Management (Export of goods
and Services) Regulations, 2000. Salient features of these Regulations are:
(i) In terms of Section 7 of the Act the Reserve Bank has been empowered to regulate receipt of payments for goods or services exported from India by prescribing a Form of declaration. Accordingly, the Reserve Bank has in terms of the above referred regulations prescribed the following Forms for declaration of goods/software as specified in the schedule annexed to the Regulations:
(a) Form GR
(b) Form SOF
(c) Form PP
(d) Form SOFTEX
As per Regulation No.3, the aforesaid declaration shall include the amount representing
(i) the full export value of the goods or software; or
(ii) if the full export value is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions, expects to receive on the sale of the goods or the software in overseas market, and affirms in the said declaration that the full export value of goods (whether ascertainable at the time of export or not) or the software