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International Marketing

Notes
be reflected in bank procedures and also the mindsets of the customs and DGFT officials.
They are fixed to the invoice values and bank realisation certificates and do not wish to
hear anything else.
In the new FEMA rules, business travellers can now avail of, minimum of $5,000 forex
with minimum documentation and paperwork. The limit has been raised from the current
level of $3,000.
There is new GR/PP form, which should be used in all export documentation. As of now,
the RBI has asked exporters to continue with the old forms after modifying them for the
FEMA undertakings. The new set of GR/PP forms will be provided to exporters shortly.
On the import side, authorised dealers have been given permission to make remittances
for all genuine transactions. In case of doubts on the authenticity of the transaction, dealers
have the right to refuse to deal with the importers, provided they do so in writing.
Exceptions to the general permissions for import remittances are under Schedule II and
Schedule III of the FEMA rules, which cover cases requiring permission from union
government as well as situations where monetary ceilings are prescribed.
The important point in exchange control on imports is that RBI approval is required for
supplier credit beyond 180 days. For credit below 180 days, no permission is required and
the dealer can straight away send out the amount. Similarly, all cases of buyer’s credit,
which means advance payment for the goods in some form or the other, also require a RBI
clearance.
The RBI has withdrawn itself from the task of prescribing documents for each transaction.
The decision is left to the authorised dealer who must deal with each situation according
to the ground level facts and circumstances. The intention is to control the transaction on
the basis of undertakings and declarations rather than conducting another customs
clearance at the banking stage.

Agriculture trade: The IIFT and the department of agricultural research and cooperation
held a day-long meeting of agriculture experts recently. The well-researched backgrounder
from NCAER showed up negative subsidies on most agriculture commodities, rice led the
field at over minus 40 per cent. The state government representatives felt that imports
were responsible for depressed agriculture prices.
Economists said that rise in state minimum support prices and the consequent difficulties
in disposing the expensive purchases are bad for agriculture. Concerns of good security
were topmost in the minds of the commerce ministry negotiators. They are looking for
ideal tariff rate, which meets the interests of the Indian producers and consumers without
compromising food security.
The commerce ministry is on a transparency spree, the main discussion papers on both the
agriculture and services negotiations at WTO reflecting the tentative position of the Indian
government on the Internet along with other related material.
Anybody can visit the site in the nic.inserver; one click on the commerce button is all that
is required to download the material. Suggestions and views can be sent on the Internet at
the Webmaster address. Given the limitations of the negotiations, cogent reactions will
strengthen India’s case at the WTO forum. The views will also build the consensus on
reform in agriculture.

Furnace Oil: The DGFT notified ` 780 per tonne as the industry rate of drawback on
furnace oil supplied to 100 per cent EOUs and export processing zones. The measure

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