RESERVE BANK OF INDIA
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
MUMBAI-400 001

A.P. (DIR Series) Circular No.38

April 12, 2002

To,

All Authorised Dealers in Foreign Exchange

Madam/Sirs,

Foreign Exchange Management Act, 1999 –
Export of goods and services – Reduction in value

Attention of authorised dealers is invited to item (i) of paragraph C.12(b) of A.P. (DIR Series) Circular No.12 dated September 9, 2000 in terms of which authorised dealers have been permitted to allow reduction in invoice value of export which does not involve gold or silver jewellery or articles made out of cut and polished diamonds.

2. The matter has now been reviewed and it has been decided to allow authorised dealers to consider requests for reduction upto 10% in invoice value of export bills also in respect of export of gold/silver jewellery or articles made out of cut and polished diamonds. All other terms and conditions of the paragraph C.12 remain unchanged.

3. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

4. The directions contained in the circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Yours faithfully,

Grace Koshie

Chief General Manager