Note-II
- Document type
- Form
- Dated
- Category
- Forms
FOREIGN TECHNOLOGY AGREEMENTS
II. FOREIGN TECHNOLOGY AGREEMENTS
- Automatic permission will be given by the Regional Offices of the Reserve Bank of India for foreign technology agreements in high priority industries (Annex III, Annex III Part `A, Part `B and Part `C) upto a lumpsum payment of US $ 2 million, 5% royalty for domestic sales and 8% for exports, subject to total payment of 8% of sales over a 10 year period from date of agreement or 7 years from commencement of production. The prescribed royalty rates are net of taxes and will be calculated according to standard procedures.
- In respect of industries other than those in Annex III, Annex III Part `A, Part `B and Part `C, automatic permission will be given subject to the same guidelines as above.
- All other proposals will need specific approvals under the general procedures in force.
- No permission will be necessary for hiring of foreign technicians, foreign testing of indigenously developed technologies. Payment may be made from blanket permits or in free foreign exchange according to RBI guidelines.