Exporters are permitted to retain up to 50% (70% in the case of 100% EOUs/Units located in EPZ/Software Technology Parks/Electronic Hardware Technology Parks) of the receipts from export of goods in a foreign currency account with an authorised dealer in India titled "Exchange Earners Foreign Currency (EEFC) account (opened in terms of provisions contained in Chapter 14). The account may be maintained in any permitted currency and in any form [current, savings (without cheque facility) or term deposit account]. The balances in these accounts may be utilised for all bona fide payments of the account holder for purposes listed in Annexure I to Chapter 14 subject to the production, to the authorised dealer, of the necessary documentary evidence in support of the amount to be remitted (See paragraph 14D.4). Exporters maintaining foreign currency accounts in terms of paragraph 6A.12 are not allowed to maintain EEFC accounts.

NOTE: Release of exchange towards charges for advertisements on overseas TV media, by debit to the EEFC Account, will be subject to the following conditions/documentation:

(a) An application in form ADV giving brief description of advertisement against item 5 of the form.

(b) Exporters declaration at the end of form ADV to the effect that the advertisement is aimed at promoting their exports.

(c) Bill/Invoice from the overseas TV company as also their confirmation that the advertisement has already been telecast on their media, is produced.

(d) The amount of agency commission, if any, due to the Indian agent of overseas beneficiary should be deducted before allowing the remittance.

(e) No advance remittance should be allowed.

(f) Production of Undertaking/certificate regarding payment of Income-tax (cf. Paragraph 3B.10).