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What is Custom Exchange Rate?

Ritika Agarwal 
on 09 July 2020

LinkedIn


What is Custom Exchange Rate?

The custom exchange rate is used in filing the shipping bill and bill of entry. The exchange rate is the value of one country’s currency in relation to author currency. The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on.

99% of export-import shipments are done in foreign currency. A country's importing and exporting activity can influence its GDP, its exchange rate, and its level of inflation and interest rates.

The Central Board of Indirect Taxes and Customs (CBIC) fixed a rate of exchange for each currency for import-export Customs clearance.

Exchange rates are fixed in the foreign exchange market. It is the market in which foreign currencies are bought and sold.

The CBIC monitors the exchange rate changes and releases the updated exchange rate notification on a time to time basis.

Complete Guide to Custom Exchange Rate

How to check the Exchange Rate of Customs

Click on https://www.cbic.gov.in/Exchange-Rate-Notifications to visit Notification page of the exchange rate of Customs.

There is an option of the year on the right side of the page. Select the year to which exchange rate you required. It will show the whole notification of the exchange rate for a particular year.

You can find here both import and export exchange rates.

You can find here both import and export exchange rates

Latest Notifications:

 

Customs Exchange Rate wef 27th March 2020

In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following amendment in the notification of the Central Board of Indirect Taxes and Customs No.27/2020-CUSTOMS (N.T.), dated 19th March 2020 with effect from 27th March 2020, namely:

The rate of exchange of conversion of each of the foreign currencies specified in Serial No. 2 of each of Schedule I and II as shown below, into Indian currency or vice versa shall be the rate mentioned against it in the corresponding entry in column(3) thereto relation to imported and export goods.

SCHEDULE-I

Sl. No.

Foreign Currency

Rate of exchange of one unit of foreign currency equivalent to Indian rupees

(1)

(2)

(3)

 

(a)
(For Imported Goods)

(b)
(For Export Goods)

1.

Australian Dollar

52.00

50.15

2.

Bahrain Dinar

176.50

164.90

3.

Canadian Dollar

51.85

50.20

4.

Chinese Yuan

9.65

9.35

5.

Danish Kroner

10.15

9.75

6.

EURO

75.45

72.85

7.

Hong Kong Dollar

8.35

8.15

8.

Kuwait Dinar

220.05

204.80

9.

New Zealand Dollar

48.05

46.35

10.

Norwegian Kroner

8.15

7.85

11.

Pound Sterling

85.20

82.40

12.

Qatari Riyal

18.10

16.85

13.

Saudi Arabian Riyal

17.75

16.60

14.

Singapore Dollar

47.75

46.25

15.

South African Rand

5.15

4.80

16.

Swedish Kroner

7.90

7.60

17.

Swiss Franc

68.45

66.15

18.

UAE Dirham

18.10

16.95

19.

US Dollar

65.20

63.50

SCHEDULE-II

Sl. No.

Foreign Currency

Rate of exchange of 100 units of foreign currency equivalent to Indian rupees

(1)

(2)

(3)

 

(For Imported Goods)
(a)

(For Export Goods)
(b)

1.

Japanese Yen

58.40

56.40

2.

Kenya Shilling

64.15

59.95

FAQ

How exchange rates affect imports and exports?

The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on. A lower-valued currency makes a country's imports more expensive and its exports less expensive in foreign markets. A higher exchange rate can be expected to worsen a country's balance of trade, while a lower exchange rate can be expected to improve it.

How can we calculate the foreign exchange received for discharging our export obligation which is not listed in the list of customs?

In such cases, the total realised value in rupee as mentioned by the bank in the eBRC should be converted into $ by using the $ or INR exchange rate prevailing on the date of realisation as published by customs through notification.

What is custom and excise duty?

Both excise and customs duty are taxes levied by the government but the major difference between the two is that excise is the tax levied by the government on the goods manufactured in the country while customs duty is a tax levied on goods imported into the country from foreign countries.

What is the customs duty charge?

Customs duty is a type of indirect tax that is levied on both exported and imported goods and services. The government charges these taxes during the export or import of goods and services to raise money and/or to shield the domestic establishments from the competitors from other countries.

Does custom duty come under GST?

As per the Model GST Law, GST will subsume Countervailing Duty(CVD) and Special Additional Duty (SAD), however, Basic Customs Duty will continue to do its round in the import bills.No tax will be payable on export of goods or services as per the GST law. Import of goods and services will be treated as inter-state supplies. IGST will be levied on the import of goods and services into the country. Basic Customs Duty (BCD) will be levied on the import of goods in addition to IGST.

Is it better for a country to export more or import more?

No, it is better for a country to maximize total trade, exports and imports. Both export and import are important and increase the wealth of a country. Exports are not better than imports, nor import better than exports. Current account deficits and surpluses reflect differences in savings and investment.

 

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