MEMORANDUM OF INSTRUCTIONS ON
PROJECT & SERVICE EXPORTS
RESERVE BANK OF INDIA
Regulations relating to 'Project Exports' and 'Service Exports' were issued in a booklet form in March 1994. Subsequently, an updated version was published in May 1997. With the introduction of Foreign Exchange Management Act,1999 (42 of 1999), suitable changes have been made in the provisions of Memo. PEM . The directions contained in this Memo. PEM. have been issued under Section 10 (4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) .
Chief General Manager
Reserve Bank of India,
Exchange Control Department,
Mumbai 400 001.
Memorandum PEM 4
Annexure IList of goods in respect of which commercial export 29 credit may be offered by Indian exporters
Annexure IIStandard conditions to be stipulated by Exim Bank/ 33authorised dealers for various facilities at the time of conveying post award approval for projects / service contracts.
Annexure AB Quarterly statement showing value of shipments 39 effected and advance / deferred instalments received in respect of exports under Deferred Payment Arrangements
Annexure IIIConditions subject to which remittance of agency 40 commission in respect of pure supply contracts may be effected by authorised dealers.
DPX 1 41
DPX 2 55 DPX 3 57 DPX 4 64 PEX 1 67 PEX 2 83 PEX 3 84 TCS 1 85 TCS 2 102
MEMORANDUM OF INSTRUCTIONS ON PROJECT
EXPORTS AND SERVICE EXPORTS
1.Export of engineering goods on deferred payment terms and execution of turnkey projects and civil construction contracts abroad are collectively referred to as ‘Project Exports’. Project export contracts are generally of high value and exporters undertaking them are required to offer competitive credit terms to be able to secure orders from foreign buyers in the face of stiff international competition. Indian exporters offering deferred payment terms to overseas buyers in respect of export of goods and those who have been awarded turnkey, civil construction contracts by overseas parties have to secure prior approval at post award stage from various institutions such as Authorised Dealer /Exim Bank / Working Group/Reserve Bank of India as the case may be for credit terms to be offered, third country imports etc. Regulations relating to Project Exports and Service Exports are laid down in this Memorandum which is divided into...