Dear Sir
We are supplying goods to SEZ Unit under Advance Authorisation.
AS per para 4.21 (iii) of FTP 2015-20 the payment from SEZ unit shall be taken in to account for discharge of export obligation provided payment is realised from Foreign Currency Account of the SEZ Unit.
Is it means that payment should be realised in foreign currency OR in Indian Rupee but from SEZ unit foreign currency account.
because DGFT relax this provision for Advance Auhtirisation issued under FTP 2009-14.
Please clarify the matter.
Thanks & regards
Kamal
A
Payment from SEZ Units Under Advance Authorisation Must Be in Foreign Currency Per Foreign Trade Policy 2015-20 A query was raised regarding the realization of payment from a Special Economic Zone (SEZ) unit under the Advance Authorisation scheme, specifically whether payment should be in foreign currency or Indian Rupees from the SEZ unit's foreign currency account. Experts clarified that, according to the Foreign Trade Policy 2015-20, payments for exports made after April 1, 2015, must be in foreign currency. A Trade Notice from February 2016 confirmed that payments in Indian Rupees were only allowed for exports up to March 31, 2015, under the previous policy. The discussion emphasized the government's aim to earn foreign exchange. (AI Summary)
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