Net Foregin Exchange

[raj nadh]

Dear Experts,

What is NFE ? How will calculate the NFE of an EOU?

Anand

AI Summary

Understanding Net Foreign Exchange Calculation for Export Oriented Units: Key Guidelines and Requirements A forum participant inquired about the calculation of Net Foreign Exchange (NFE) for an Export Oriented Unit (EOU). An expert explained that NFE is calculated by subtracting the value of imports from the value of exports. A positive NFE indicates that exports exceed imports. The calculation method is detailed in the Handbook of Procedures (HBP), considering imported inputs, capital goods, and foreign exchange payments. EOUs must achieve positive NFE within a five-year block from production commencement. Relevant customs and excise notifications define NFE in line with the Foreign Trade Policy (FTP).