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.

[MUKUND THAKKAR]

Dear Dipak,

if you are sending the good from DTA to SEZ and obtain draw back benefit in such situation need not your realisation in FC.

if you are exporting goods thru merchant exporter than need not your realization in FC. you can obtain export benefit. please refer chapter 8 FTP and chapter 8 of HBP V1.

AI Summary

Drawback admissibility may not require foreign currency realisation when goods move DTA to SEZ or via merchant exporter. Drawback may be allowed without receipt of payment in convertible foreign exchange when goods are transferred from the Domestic Tariff Area to a Special Economic Zone, and exports executed through a merchant exporter can attract export benefits without the exporter's receipt of foreign exchange.