POLICY CIR NO. 06/2005-09, DT. 08/06/2005

Clarification - Relating to exports of services by service provider under GATT’s Agreement

Attention is invited to Para 9.53 (iv) of Foreign Trade Policy 2004-09 updated as on 31.3.2005 according to which a Service Provider includes a person supplying "service" in India relating to exports paid in free foreign exchange or in Indian rupees which are otherwise considered as having been paid for in free foreign exchange by RBI.

2. As per GATT’s Agreement, such services can be rendered within the territory of service providers nationality, and therefore earning of free foreign exchange by providing services is the only way a service provider can export his services as defined in the above said Para.

3. It is therefore clarified that words "relating to exports" actually means "relating to exports of services by service provider under GATT’s Agreement". It is reiterated that the provisioning of services; irrespective of import vessel and export vessel, that may have been serviced, is covered for benefits under this provision.

4. This issues with the approval of competent authority.

(Subhash. R)
Asstt. Director General of Foreign Trade

(F.No. 01/94/180/Policy Circular/AM06/PC-I)

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