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TMI BlogDuty Drawback on Export made to nepal/bhutan- Challenges or issueX X X X Extracts X X X X X X X X Extracts X X X X ..... Duty Drawback on Export made to nepal/bhutan- Challenges or issue X X X X Extracts X X X X X X X X Extracts X X X X ..... back is available for exports to Nepal and Bhutan. Though exports to Nepal eligible for drawback if payment received in US $ or Pound Sterling. Reply By Sudhir M: The Reply: Hello Shilpi Maam, Actually i was under the impression that drawback is allowed as there is no restriction under the Customs law or Drawback rules. Would humbly request you if you can share some legal referance with me so th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at i can check that Reply By KASTURI SETHI: The Reply: After 1.2.19 exports to Nepal and Bhutan are normal exports. Reply By YAGAY andSUN: The Reply: Maybe useful in your matter:- There is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under the Foreign Exchange Management Act 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Further, in terms of Para 2.52 of the Foreign Trade Policy, 2023, (a) All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realised in freely convertible currency. (b) However, export proceeds against specific exports may also be realised in rupees, provided it is through a freely convertible Vostro accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting bank service charges) on account of this transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion would be taken as export realization under export promotion schemes of FTP. (c) Contracts (for which payments are received through Asian Clearing Union (ACU) shall be denominated in ACU Dollar. However, participants in the ACU may settle their transactions in ACU Dollar or in ACU Euro as per RBI Notifications. Central Government may relax provisions of this paragraph in appropriate cases. E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport contracts and invoices can be denominated in Indian rupees against EXIM Bank/Government of India line of credit. (d) Invoicing, payment and settlement of exports and imports is also permissible in INR subject to compliances as under RBI's A.P. (DIR Series) Circular No.10 dated 11th July, 2022. Accordingly, settlement of trade transactions in INR shall take place through the Special Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pee Vostro Accounts opened by AD banks in India as permitted under Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, in accordance to the following procedures: (i) Indian importers undertaking imports through this mechanism shall make payment in INR which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices for the supply of goods or services from the overseas seller /supplier.
(ii) Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country. X X X X Extracts X X X X X X X X Extracts X X X X
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