Drawback eligibility and receipt of foreign currency.

[VINOD KUMAR]

DEAR EXPERTS.GOOD EVENING. Sir, in which chapter of FTP/HBP it has been mentioned that bo drawback will be admissible without the receipt of payment in convertible foreign exchange. Pl. Reply. Thanks and regards.

AI Summary

Convertible Foreign Exchange Not Required for Drawback Benefits in DTA to SEZ Exports, Says Respondent. Refer Chapter 8 FTP/HBP. A participant inquired about the requirement for receiving payment in convertible foreign exchange to be eligible for drawback benefits under the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP). A respondent clarified that when goods are sent from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ), or when exporting through a merchant exporter, realization in foreign currency is not necessary to obtain export benefits. The respondent advised referring to Chapter 8 of both the FTP and HBP for further details.