Madam / Sirs,

Attention of Authorised Dealer Banks is invited to AP (DIR Series) Circular No.12 dated August 20, 2003 in terms of which, the facility for realisation and repatriation of full value of goods / software exported to the countries listed in the annexure to the above circular within 360 days, was extended upto August 31, 2004 subject to review.

2. It has been decided to discontinue the facility with effect from September 1, 2004. Accordingly, i.e. for exports made on or after September 1, 2004, exporters exporting to the countries listed in the annexure to the circular ibid, are under obligation to realise full export proceeds within the prescribed period of six months from the date of export.

3. The facility of 360 days for export realisation will, however, continue to be available for exports made to Latin American countries by status holder exporters and manufacturer exporters/merchant exporters/traders of certain products and having export contracts of Rs.100 crore (Rs.1000 million) and above as mentioned in A.P. (DIR Series) Circular No.35 and A.P. (DIR Series) Circular No.30 dated April 1, 2002 and October 21, 2003, respectively.

4. The direction contained in this circular has been issued under Sections 10(4) and 11(1) of the Foreign exchange Management Act, 1999(42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

5. Authorised Dealer Banks may bring the contents of this circular to the notice of their constituents and customers.

Yours faithfully,

Grace Koshie