Forward cover for customs duty permitted, enabling importers to hedge currency-indexed duty exposure subject to maturity and cancellation rules. AD Category - I banks may provide forward contracts to hedge importers' currency-indexed exposure for the customs duty component of imports; such contracts must be held to maturity and are cash-settled by cancellation on maturity, are not eligible for rebooking after cancellation, but may be cancelled or rebooked before maturity if government notifications change customs duty rates.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Forward cover for customs duty permitted, enabling importers to hedge currency-indexed duty exposure subject to maturity and cancellation rules.
AD Category - I banks may provide forward contracts to hedge importers' currency-indexed exposure for the customs duty component of imports; such contracts must be held to maturity and are cash-settled by cancellation on maturity, are not eligible for rebooking after cancellation, but may be cancelled or rebooked before maturity if government notifications change customs duty rates.
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