Sub : Significant change in policy – Export Incentives – Export realizations in INR
DGFT Issues Notification for consideration of INR payments under new mechanism for Export Incentives
The much awaited update to recognize the INR Payments received for exports as per the new RBI Circular dated 11th July 2022 to be made eligible for various Export Incentives under the FTP has been finally announced.
DGFT vide Notification No. 43/2015-20 Dt. 09.11.2022 & Public Notice No. 35/2015-20 Dt. 09.11.2022 have announced the same.
As per the above, 👆
1. Export proceeds realised in INR as per the new mechanism under para 2.52(d) (ii) would be eligible for fulfilment under of Export Obligations under FTP (2015-20) [Para 2.53 has been modified]
2. Status Holder Certificate criteria would be considered on basis of FOB in free foreign exchange or INR under para 2.53 [Para 3.20 has been modified]
3. Currency of Realisation has been modified to state that Export Proceeds must be realised in freely convertible currency or INR as per Para 2.53 [Para 4.21 has been modified]
4. Realisation of Export proceeds under Chapter 5 (EPCG) has been allowed in FFE or INR as per para 2.53.
The above notification and Public Notice come into force with immediate effect (i.e 09.11.2022)