Important categories in which the trade fairs/exhibitions are divided for the purpose of release of foreign exchange are listed below:
(i) Fairs/exhibitions other than books fairs/exhibitions
(ii) Book fairs/exhibitions
1. Fairs / Exhibitions:
For the purpose of release of foreign exchange, fairs/exhibitions (other than book fairs) are further divided into:
ADVERTISEMENTS:
(1) Where expenditure in foreign exchange is up to US $20,000 or its equivalent.
(2) Where expenditure in FE exceeds US $20,000 or its equivalent.
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Where expenditure is up to US $20,000:
ADVERTISEMENTS:
Where expenditure in foreign exchange on participation (including expenditure on travel) in fairs/exhibitions (other than book fairs/exhibitions) is upto US $20,000 or its equivalent, foreign exchange is released by a bank (authorised dealer in foreign exchange) on an application made to it.
Application on participant’s letterhead can be sent to the bank, without routing it through or getting recommended by, any authority like ITPO, EPC, Chamber of Commerce, etc.
Even EPCs/Commodity Boards can directly approach the banks for release of foreign exchange, where expenditure on participation (including expenditure on travel) does not exceed US $20,000 or its equivalent. The following details should be given in the letter.
(a) Space to be booked and rent payable
ADVERTISEMENTS:
(b) Quantity and value of goods to be displayed
(c) Expenditure on decoration, display and labour charges
(d) Number of representatives to be sent and period of their stay abroad and daily expenses of each of them
(e) Cost of advertisement if the firm/company intends to have special advertisement, other than what will be available throughout the exhibition.
Where expenditure exceeds US $20,000:
Where requirement of FE on participation (including travel) exceeds US $20,000 or its equivalent, the exporters should apply to the ITPO, New Delhi which will issue necessary authorisation for release of exchange to the firms/companies.
Such applications should, inter alia, give the particulars listed above. After obtaining ITPO’s recommendation, apply to the bank (AD) for FOREX.
FOREX release:
The AD may on receipt of application, release foreign exchange upto US $20,000 or as recommended by ITPO, subject to the condition, that the participants render proper account of the expenditure incurred.
2. Book Fairs/Exhibitions:
Private publishers/printers etc., wishing to participate in book fairs/ exhibitions abroad, where expenditure (including expenditure on travel) does not exceed US $20,000 or its equivalent may also obtain their FE requirement from authorised dealers direct by and need not have any clearance from the Ministry of Human Resources Development, Dept. of Education.
However, if their requirement exceeds US $20,000 the applicant should approach the Ministry of Human Resources Development (Dept. of Education), New Delhi -110 001 who will make suitable recommendations to the RBI for release of FE.
Exhibits of Export Restricted Items:
Items which are not subject to any export restriction, in terms of the EXIM Policy and those listed in Appendix of the Handbook of Procedures (Vol.1), can be sent abroad freely without any restriction. The items, of which export is restricted, can be sent for exhibition/display abroad in terms of the EXIM Policy.
The exhibits of items export of which is totally prohibited are not allowed to be sent abroad.
MDA Grant:
For participation in fairs/exhibitions, grant/assistance is available to export houses, trading houses, star trading houses and super star trading houses, under the scheme of marketing development assistance (MDA) of the Ministry of Commerce.