Advance licence obligation discharge

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This query is : Resolved

PARDEEP SINGH (Querist)

30 September 2015 Dear Experts

I have been issued a Advance licence of particular Product and filed the Bill of entry in customs, as i have imported some material, as per Advance Licence. Now to discharge the export obligation, i have below queries.

1. I am exporting to NEPAL in INR, will it allow me to discharge my export obligation against that Advance Licence as the Bill of entry is filed in USD.

2. Can i also export to NEPAL In USD.

Please advise and thanks in advance, waiting for your earlier reply.

Pardeep Singh

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

05 October 2015 Refer to Para 2.52 of foreign Trade Policy 2015-2020 Sub Para (a)All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency.

Sub Para (b) 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 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 transaction would be taken as export realization under export promotion schemes of FTP.

Regards,

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