The Reserve Bank of India has scrapped the time-limit for realisation of exports of goods and services made by units in special economic zones.
At present, such units are permitted to realise and repatriate to India the full value of goods or software within 12 months from the date of export.
Further, the units have been allowed to issue equity shares to non-residents in lieu of payment for import of capital goods, subject to the valuation being verified by a committee comprising development commissioner and customs officials.
The unit issuing equity should report the particulars of the shares along with a copy of the valuation certificate to the regional office under whose jurisdiction the special economic zone falls. A copy of the report may also be forwarded to the department of industrial policy and promotion.
The RBI said authorised dealers may allow requests received from exporters for netting off of export receivables against import payments for units located in special economic zones.
Gem and jewellery units and export oriented units can receive payments in the form of precious metals equivalent to the value of jewellery exported on the condition that the sale contract provides for the same and the approximate value of the precious metal is indicated in the relevant forms.
To promote international operations, units in SEZs are permitted to undertake jobwork abroad and export goods from that country itself.
This, however, is subject to fulfillment of two conditions : processing/manufacturing charges are suitably loaded in the export price and are borne by the ultimate buyer, and, the exporter has made satisfactory arrangements for realisation of full export proceeds.
The central bank said that necessary amendments to the Foreign Management Regulations are being notified separately and that these facilities will be available in respect of the shipments made on or after April 1, 2003.