Subject :- Clarification regarding export of goods against repayment of state credits and liquidation of debt repayment arrangements.
Some representations have been received from the exporters exporting goods to Russia (erstwhile soviet Union) that some Custom Houses are not accepting shipping bills under the DEEC Scheme on the grounds that the shipping bills do not indicate the value of the export goods in terms of freely convertible currency and that such shipping Bills indicate f.o.b. value in Indian rupees only. Attention in this regard is drawn to para 2(v) of Ministry’s Circular No. 3/92 and 4/92 both dated 1.6.92 issued from F.No. 605/58/92-DBK wherein it has been stated that import and export values shall be denominated both in Indian rupees and in convertible foreign exchange.
2. The matter was referred to the DGFT who have clarified that while issuing Advance Licences for exports of goods against repayment of state credits granted by the former USSR and against liquidation of debt repayment arrangements, the guidelines contained in RBI Circular No. AD (MA Series) No. 30 dated 23.9.93 should be followed as clarified in their ALC No. 2/95 dt. 20.1.95 (copies with enclosure)1. The receipt of this Circular may kindly be acknowledged.