Circular No. 16/2002-CUS.

5th March, 2002.

F.No.476/3/2001-LC
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

Sub: General permission for release of imported currency through post - reg.

As you are aware, under Section 13 (i) of Foreign Exchange Regulation Act,
1973, no person could bring or send into India any foreign exchange or Indian currency
except with special or general permission of Reserve Bank of India. Parcels/packets
suspected to contain foreign/Indian currency, etc., were to be detained and adjudicated
on merits.

2. Import of Indian currency notes and coins by post is not permitted. However,
whenever such notes, received by post, are detected by the Customs, the impounded
currency is released on the basis of "No Objection Certificate" (NOC) which is issued on
merits of each case by the RBI.

3. Packets/parcels containing foreign currency upto Rs. 500/- could earlier be

released by the Assistant Commissioner of Customs on caution subject to his
satisfaction of genuineness. The particulars of such release were also to be forwarded
to RBI and the Enforcement Directorate for information.

4. To reduce pendency and to avoid delay in clearance of mail articles, in

November, 1997, the RBI had decided to permit the Customs to allow import of both
Indian and foreign currencies received by residents by post, provided the value does
not exceed Rs. 1000/-, subject to the following conditions:

(a) the power to grant approval is exercised at a fairly senior level in the Customs;
(b) a detailed record should be maintained of the exemptions granted;
(c) record of the name and addresses of the remitter and addressee in India should
be maintained; and
(d) where a spurt is noticed in the number of covers received over a time, the
matter may be reported to the concerned Regional Office of RBI.

5. In view of the liberalisation of foreign exchange regulations under the

Foreign Exchange Management Act (FEMA), 1999, the matter has been reviewed by the
RBI. It has now been decided to enhance the existing limit as in para 4 above of Rs.
1000/- to Rs. 5000/-. Accordingly, Customs can allow import of both Indian and foreign
currencies received by residents through post without insisting on a NOC from RBI,
provided the value does not exceed Rs. 5000/-. Such clearance by Customs shall be
subject to the conditions cited at para 4 (a) to (d) above. In the context of condition at
para 4 (a) above, Board has decided that imports of Indian and foreign currencies upto
a value limit of Rs. 5000/- should be permitted under the approval of the
Deputy/Assistant Commissioner of Customs.
6. You are, therefore, requested to issue necessary instructions to the Customs
formations under your charge and issue suitable trade/public notice in this regard.
Receipt of this Circular may please be acknowledged. Difficulties faced in
implementation of these instructions may be brought to the notice of the Board.