The RBI being the Nodal bank and the central bank has come with a circular Dated 11-7-2022 to settle the export proceeds in INR for goods /supplies done in respective foreign currency.
The FEMA regulation 1999 has clearly and Foreign trade policy 2015-20 in handbook FTP 2.5 clearly says all the exports have to be realized in convertible INR with w.e.f from 11-7-2022. The stipulated period of exports was reduced from 12 months to 9 months earlier.
FOB proceeds have to settle in free INR, this is done for the computation of NPE this has governed by FTP.
Even the imports are governed by this chapter including the import of capital goods and second-hand machinery, this has to be done through a special Vostro account to be opened with respective AD banks.
Even exports under DFIA and DFRC should be settled in INR as per FTP handbook 2.5. Even for SEZ and EOU which exports whether bond or without tax are governed in this chapter. For FTP /EHTP/this policy is applicable. The promotions council is a nodal agency for various Trade involved.
Even the EPCG scheme is governed and the proceeds has to be considered in INR. EPCG scheme was mainly launched for export benefits and drawback /SEIS /MEiS/RODSTEL schemes.
For this Authorized dealer, banks are advised to advise their clients importers and exporters to have a separate Vostro and to maintain separate EEFC accounts with the designated branches.
CAclubindia
