The Reserve Bank of India ("RBI") has, through a notification bearing no. FEMA 23(R)/(2)/2019-RB dated December 9, 2019, made an amendment in the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 [Notification No. FEMA 23(R)/2015-RB dated January 12, 2016] ("Principal Regulations")

Vide the aforesaid amendment, the following has been inserted in the Principal Regulations, in regulation 4, after sub-regulation (e):

"(ea) re-export of leased aircraft/ helicopter and/or engines/auxiliary power units (APUs) re-possessed by overseas lessor and duly de-registered by the Directorate General of Civil Aviation (DGCA) on the request of Irrevocable Deregistration and Export Request Authorisation (IDERA) holder under 'Cape Town Convention' subject to permission by DGCA/Ministry of Civil Aviation for such export/s."

Hitherto, export of aircrafts or aircraft engines and spare parts for overhauling and/or repairs abroad was exempted from the requirement of declaration of export by the exporter, subject to their reimport into India after overhauling /repairs, within a period of six months from the date of their export.

In addition to the said exemption, the amendment has now excluded the exporter, subject to fulfilment of certain conditions, from furnishing declaration of exports in case of re-export of the leased aircraft/ helicopter and/or engines/auxiliary power units to the overseas lessor.

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