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2020 ] TIT-BITS A79

Beneficiaries
Considering that the importer/exporter may find it difficult to comply
with requirement of furnishing bond for some more time till the situation nor-
malises, the relaxation shall be available up to April 30.
The relaxation shall, however, be subject to review by the C.B.I. & C. on
April 14, the day the lockdown ends.
Till April 30, Customs field formations may accept request for submis-
sion of an undertaking from the importer/exporter in lieu of a bond prescribed
under the Act. The relaxation will apply to Government/public sector undertak-
ings (Central/State/UT Governments or administrations and their undertak-
ings), manufacturer/actual user importer, authorised economic operators, status
holders and all importers availing warehouse facility in terms of Section 59 of the
Customs Act, 1962.
On a case-to-case basis
Such relaxation from submitting a bond may also be considered on a
case-to-case basis for any other importer and exporter who requests for the same,
with additional safeguards as deemed fit by the jurisdictional Commissioner to
safeguard revenue and ensure compliance of the statutory provisions.
Importers/exporters availing this facility shall ensure that the undertak-
ing furnished in lieu of bond is duly replaced with a proper bond before May 7.
[Source : The Business Line, New Delhi, dated 4-4-2020]

RBI allows export proceeds to be kept abroad for 15
months, hikes WMA limit of State Government by 30%

Close on the heels of the repo rate cut and moratorium on term loans, the
Reserve Bank of India (RBI) on 1-4-2020 allowed exporters to keep their proceeds
outside India for 15 months and hiked the Ways and Means Advances (WMA)
limit of State Governments by 30 per cent to cushion the impact of the corona-
virus pandemic and lockdown. The Central Bank has provided relief to the bank-
ing sector’s capital requirements.
The RBI said the time period for realisation and repatriation of export
proceeds made up to or on July 31, 2020 has been extended to 15 months from
the date of export. ‘The measure will enable the exporters to realise their receipts,
especially from COVID-19 affected countries within the extended period and
also provide greater flexibility to the exporters to negotiate future export con-
tracts with buyers abroad,” the RBI said.
Currently, the value of the goods or software exports made by the ex-
porters is required to be realised fully and repatriated to the country within a
period of nine months from the date of exports. Export activities have been dis-
rupted in the wake of the pandemic and lockdown in many countries.
Further, the RBI has decided to increase the Ways and Means Advances
(WMA) limit by 30 per cent from the existing limit for all States and Union Terri-
tories to enable the State Governments to tide over the situation arising from the
pandemic. The revised limits will come into force with effect from April 1, 2020
and will be valid till September 30, 2020, the RBI said.
The hike in WMA limit is pending submission of the final recommenda-

EXCISE LAW TIMES  15th April 2020  79