Duty drawback in case of goods sold to Nepal & payment received in Indian Rupees

[MOHIT LUTHER]

Dear Sir,

Can a exporter receive duty drawback , if he has sold goods to Nepal & payment is received from the party in Indian Rupees. Please guide.

AI Summary

Exporters to Nepal Ineligible for Duty Drawback if Paid in Rupees; Must Use Foreign Currency or Vostro Account. An exporter cannot receive duty drawback for goods sold to Nepal if payment is received in Indian Rupees unless the payment is realized in foreign currency or through a Vostro account. Transactions between residents of India and Nepal can be settled in Indian Rupees, but export proceeds should be realized in freely convertible currency. Exceptions exist for exports where proceeds can be realized in rupees through a freely convertible Vostro account, excluding countries in the Asian Clearing Union, Nepal, or Bhutan. Indian Rupee is not yet a freely convertible currency.