Export to south africa in inr

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Amol (Querist)
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08 November 2012
We are exporting motor vehicle parts (UNDER ITC HS CODE 87089900) to Nissan, south africa in INR and receiving the payment in INR.

Can we avail export incentives like MLFPS, DBK, EPCG etc. for export to S.Africa?

If yes then how?

Can INR BRC eligible for avail export incentives?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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08 November 2012 WILL BE ADMISSIBLE.

As per para 2.40 of the Foreign Trade Policy,

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.

However export proceeds against specific exports may also be realized in rupees provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of 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 the bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.

Contracts for which payments are received through Asian Clearing Union (ACU)] shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM Bank / Government of India line of credit

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Amol

Amol (Querist)
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09 November 2012 Dear Verma Sir,

Thank you very much for rely.

We are exporting to Nissan, South Africa in INR but payment is receiving from France to JP Morgan, Mumbai Bank and then JP transfers payment to our SBI a/c in INR.

Can we take INR BRC from SBI and will it be eligible for export incentives?

Can CBEC give us DBK amount and accept INR BRC?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 November 2012 read link for further info:

http://164.100.9.245/Exim/2000/CIR/CIR12/cir0612.htm

OPINION:
it seems you are Not satisfied with the reply given by me then you liable for RTI Information from DGFT.

REGARDS,

Amol

Amol (Querist)
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20 November 2012 Dear Ramesh Sir,

Thanks for your valuable information. Now, we are starting to avail export incentives to S. Africa (DBK & MLFPS).

I have one question sir. We have been exporting to Africa from 2009 to till date. We exported the material in past as a free shipping. Can we get/avail past DEPB & DBK from customs?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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21 November 2012 Policy Circular No.32(RE-/2009-14 Dated: 03rd June, 2011

You admissible for CHAPTER-3 incentive above said policy circular of A change made in the FTP issued on 5.6.12 related to declaration of intent on free shipping bills under para 3.11.8 of HBP, Vol. I. The position with respect to this para was earlier governed by DGFT Public Notice No. 53(RE-2010)/ 2009-14 dated 3.6.2011. In the FTP issued on 5.6.12, the requirement of declaration of intent was deleted. During post FTP discussions, the necessity of retention of this provision was informed to the Department of Commerce and it was agreed that the pre 5.6.12 position would be restored.

for more info:

file:///C:/DOCUME~1/ADMINI~1/LOCALS~1/Temp/cir_declarationofintent.htm

Amol

Amol (Querist)
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21 November 2012 Dear Ramesh Sir,

In past we had not mentioned any declaration of intent on invoices reg. availing chapter 3 benefits.

Can we not get MLFPS benefits?

Your attached more info. file is not opening.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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21 November 2012 on duty free shipping bill exporter will mentioned declaration that we are taking the CHAPTER-3 incentive inn the light of above said policy circular.