Important groups under which the foreign travel is divided are given below:
1. Business visits by individuals
2. Business Delegations
1. Business Visits:
Business visits can be further grouped under:
ADVERTISEMENTS:
1. Participation in trade fairs/exhibitions
2. Visits to trade fairs/exhibitions by non-participating exporters
3. Visits for business against
ADVERTISEMENTS:
(a) Foreign hospitality and
(b) One’s own expenditure i.e. non-hospitality visits
Business visits on non-hospitality for any purpose, other than participation charges for fairs/exhibitions, are allowed almost freely.
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Foreign exchange in non-hospitality visits:
ADVERTISEMENTS:
US $350 per day for all, other than the Chief Senior Executives like Chairman, Managing Director, Director who are allowed US $500 per day, is given by any AD, i.e. authorised dealers in foreign exchange which comprise of banks and other dealers, bank on application made to it.
It is given for a maximum period of 45 days per person in a single trip. However, a FE of up to US $5000 per visit regardless of the duration of the visit and without applying the appropriate per dime rate may be released.
This would be inclusive of exchange under any other head, viz. entertainment expenses, secretarial services and no separate exchange for these purposes would be permissible.
Entertainment expenses:
FE towards entertainment expenses may be released not exceeding US $2000 per trip to Chief Executives and others per person and US $5000 to Chief Executive of export/trading/star trading houses.
EEPC account holders:
The EEFC Account holders can also utilise the funds therein for travel abroad only for business visits themselves or by their representatives including supporting manufacturers in connection with export promotion including participation in trade fairs. Similarly, FC Accounts may also be utilised for this purpose.
Application:
Application by letter (in duplicate) may be sent to the AD (bank) by the sponsoring firm/company/organisation indicating the traveler’s-
(i) Name and address
(ii) Nationally
(iii) Passport number
(iv) Nature of visit in each country
(v) FE required
(vi) Exporter’s Code No. allotted by RBI
IEC-O-Import-Export Code No. allotted by licensing authority or
RCMC issued by an EPC, etc. In fact, the RBI has stated that bankers and authorised dealers in foreign exchange may insist upon any of the three registration certificates as at above before releasing foreign exchange.
Certificate:
The sponsors should also certify that the expenses are being borne by them.
Undertaking:
An undertaking that the FE will be utilised only for the purposes stated in the application is also to be given.
Foreign hospitality business visits:
FE may be released up to a maximum of US $500 per person if the visit is up to a period of 10 days or US $50 per day up to a maximum period of 45 days.
Application by a letter (in duplicate) may be sent to the AD by the applicant giving full name, address, passport number and date, nationality of the traveler, country of visit, period of stay, name and address of the host, purpose of visit, etc.
2. Business Delegations:
Foreign Exchange is also released to travel abroad to members of business delegations sponsored by trade bodies like Chambers of Commerce, FIEO, etc., at a rate not exceeding US $350 ($500 to Chief Executives/Senior Executives) or its equivalent per day, for a period not exceeding 45 days, or US $5000 per member regardless of the duration of visit and per dime rate.