TaxTMI 
TaxTMI 
Dear Experts,
What is NFE ? How will calculate the NFE of an EOU?
Anand
Net Foregin Exchange
19 Nov 2014 
2 Replies 
8536 Views Asked by
Net foreign exchange: exports net of imports and foreign exchange outgo determine NFE compliance for export units.
Net Foreign Exchange measures foreign exchange earned by an export unit as Exports (FOB) minus Imports (CIF) and other foreign exchange outgo such as capital goods, imported inputs, dividends, royalties, commissions and foreign travel; the calculation is expressed as a percentage of exports and must include all imported inputs, capital goods and payments in foreign exchange as prescribed in the handbook annexure, with export oriented units required to achieve positive NFE within the prescribed block period. (AI Summary)
Net Foreign Exchange measures foreign exchange earned by an export unit as Exports (FOB) minus Imports (CIF) and other foreign exchange outgo such as capital goods, imported inputs, dividends, royalties, commissions and foreign travel; the calculation is expressed as a percentage of exports and must include all imported inputs, capital goods and payments in foreign exchange as prescribed in the handbook annexure, with export oriented units required to achieve positive NFE within the prescribed block period. (AI Summary)