One of our Customer have an export order to Bangladesh..
they will import the Raw material form Bangladesh and will be paid in US DOLLER ..
they will manufacture the goods with a value addition go 21% and then will be exported to Bangladesh..
They will be getting the realization of export proceeds in Indian Rupees..
Can they apply for Advance Authorization??? Is it mandatory TO get export proceeds in US dollar ???
Can you clarify this ponit with the provision in FTP..'
Can export proceeds be received in Indian Rupees? Para 2.52 of Foreign Trade Policy allows it with conditions. A customer plans to import raw materials from Bangladesh, manufacture goods with a 21% value addition, and then export the finished products back to Bangladesh. They will receive payment in Indian Rupees and seek clarification on whether they can apply for Advance Authorization and if receiving export proceeds in US dollars is mandatory. The response indicates that according to Para 2.52 of the Foreign Trade Policy, export proceeds in Indian Rupees are permissible from a Vostro Account, subject to certain conditions. (AI Summary)
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