Foreign exchange regulations in India mandate for Exchange control declaration form, if goods are exported beyond $ 25,000 per transaction. Accordingly an exporter has to file a declaration in the format prescribed by RBI and submit the same to the Indian customs.
The Exchange Control Declaration (previously GR) Form is essential for declaring exports of goods from India.
EDF Form (previously GR) Form
EDF form: is the Amended exchange control declaration form under RBI Circular No. 43 dated 13th September 2013 and the changes include:
1. EDF Replaces GR/PP form used for declaration of export of Goods
2. Under the revised procedure, the exporters will have to declare all the export transactions, including those less than US$25000, in the form as applicable.
3. In order to simplify the existing form used for declaration of exports of Goods/Softwares, a common form called “Export Declaration Form” (EDF) has been devised to declare all types of export of goods from Non-EDI ports and a common “SOFTEX Form” to declare single as well as bulk software exports.
4. The procedure relating to the exports of goods through EDI ports remain the same .
RBI Circular No. 43 dated 13th September 2013
Simplification and Revision of Declaration Form for Exports of Goods/Softwares
Simplification and Revision of Declaration Form for Exports of Goods/Softwares
Attention of the Authorised Dealers is invited to Regulation 6 of the Notification No. FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended by the Notification No.FEMA 36/2001-RB dated February 27, 2001 and A.P. (DIR Series) Circular No. 80 dated February 15, 2012 ,in terms of which every exporter of goods or softwares has to give declaration in one of the forms (GR/PP/SDF/SOFTEX/Bulk SOFTEX) and submit it to the specified authority for certification.
Process of EDF Download from RBI Website, Attested by Customs and Submission to Bank
1. online generation of SOFTEX Form No: open RBI website- www.rbi.org.in. (Single as well as Bulk) for use in Off-Site Software exports, and EDF Form No.
2. Generate the SOPFTEX/EDF number and It is submitted to the specified authority for certification.
The applicant has to fill-in the online form : (Path www.rbi.org.in – Forms – FEMA Forms – Printing EDF/SOFTEX Form No.) Once filled, the EDF/SOFTEX Form No. would be generated for each transaction by the applicant exporter.
3. Submit EDF/SOFTEX Form using the number allotted for customs certification: Once attested by customs submit to AD(Authorized dealer) for necessary action as mentioned.
4. Submit a duplicate SDF/ EDF to the authorized bank: along with the shipping documents and the bank endorses the copy of same, after realization of sales proceeds and sends it to the RBI.
5. final Assessment from RBI: The original copy submitted at customs is also directed to the RBI. The RBI compares the two copies and confirms the realization of the proceeds as per full export value.
6. Realization of export proceeds: FEMA regulations 2000, clearly mandate that export proceeds must be realized within 270 days from the date of export of goods, which is the date of transport documents, that is a bill of lading airway bill or date of stamping of Courier receipt.
7. Declarations: it is noted that declaration has to be made with appropriate forms for all exports as per FEMA rules and regulations to RBI.
- The exporter declares that the particulars provided are true.
- If the full export value is not ascertainable, the declared value reflects the expected sale value in the overseas market.
What is a declaration given by exporter?
Declaration by exporter states that- “ I/We hereby declare that I/we, am/are the seller of the merchandised goods and software in respect of which this declaration is made and that the particulars given above are true and that the value to be received from the buyer represents the export value contracted and declared above.”
Purpose and Relevance of EDF Form:
- The EDF form replaces the earlier GR/PP (Goods Receipt/Post Parcel) form.
- It is submitted to the specified authority for certification.
- The form includes crucial information such as exporter details, invoice numbers, shipment details, and more.
- The exporter declares the full export value of the goods on this form.
- If the full export value is not ascertainable at the time of export, the declared value reflects the expected sale value in the overseas market.
- The exporter commits to delivering foreign exchange representing the full export value within the prescribed timeframe.
Contents of the EDF Form:
- Exporter details, including the original exporter’s name.
- Invoice number and date.
- Shipping bill (SB) number and date.
- AR4/AR4A number and date.
- Quality certificate (Q/Cert) number and date.
- Importer-Exporter Code (IEC) number.
- Consignee details.
- Export Trade Control (options include deferred credit, joint ventures, rupee credit, and others).
- RBI’s approval or circular number and date.
- Custom House Agent details
- Authorized dealer details, through whom the proceeds of the exports will be realized.
- Pre-carriage information.
- Port of loading and port of discharge.
- Nature of contract (CIF, C&F, FOB, or other).
- Exchange rate under Section 14 of the Customs Act.
- Details of goods (marks, quantity, value, etc.).
- Declaration regarding full export value or expected sale value.
- Undertaking to deliver foreign exchange representing the full export value within the prescribed timeframe.
compliance with the EDF form is crucial for exporters.
SOFTEX form
The Software Export Declaration (SOFTEX) Form is used for declaring the export of software from India.
- Softex form Process Simplification: Requirement of submission of SDF has been dispensed with amendment in the shipping bill [electronic integrated declaration ] regulations 2000, as SDF is merged with shipping bill.
- EDF vs. SOFTEX:
- The main distinction between the EDF (or GR/PP) and the SOFTEX form lies in their timing:
- EDF: Submitted and valued concurrently with actual exports from the port of shipment.
- Softex : Submitted after software has been exported.
- The main distinction between the EDF (or GR/PP) and the SOFTEX form lies in their timing:
Who is required to fill a SOFTEX Form?
- Every exporter who is engaged in export of computer software and audio/video/Television software otherwise than in physical form shall be under obligation to file Form Softex. Software export through physical form can be in magnetic tapes/discs, and paper media.
- Requirement of filing SOFTEX form is applicable to all units whether located in STP, SEZ, EPZs, 100% EOU (Export Oriented Units) or DTA (Domestic Tariff Area).
- Therefore, companies located in non-STP areas and engaged in export of software are also under an obligation to file Form Softex.
The EDF and SOFTEX form have been given in Annex I and Annex II, Annex III respectively.
In summary, exchange control declaration form document is crucial for both the exporter and the government, as it helps monitor and regulate goods leaving the country. the SOFTEX form streamlines the declaration process for software exports.
If, all the necessary information is accurately reported, businesses can avoid potential fines and delays.