Clarity regarding Realisation of Payment from SEZ Unit

[kamal chordia]

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

AI Summary

Foreign currency realisation requirement: payments from SEZ units must be received in foreign currency to discharge export obligations.
Payment from an SEZ unit must be realised in a Foreign Currency Account (an account maintained in a currency other than India, Nepal or Bhutan) because SEZs are treated as foreign territory. A Trade Notice created a transitional allowance for rupee receipts under the prior FTP for earlier exports, but under the current policy payment must be received in foreign currency from the SEZ unit's foreign currency account to discharge export obligation under Advance Authorisation.