Payments received from Nepal

[Arti Gupta]

Sir,

Kindly state the provisions where the benefit of Foreign Trade Policy is applicable for the Exports made to Nepal and payment is received in :

(a)INR

(b)Freely Convertible Currency

(c) Nepalese rupee

Thanks in advance.

AI Summary

Exports to Nepal Eligible for FTP Benefits; INR Payments via VASTRO Account Recognized Under Chapter 3, Advance Authorization. A query was raised regarding the applicability of Foreign Trade Policy (FTP) benefits for exports to Nepal, specifically when payments are received in Indian Rupees (INR), freely convertible currency, or Nepalese Rupee. It was clarified that exports to Nepal are treated similarly to exports to other countries, with certain benefits available under FTP Chapter 3 and Advance Authorization. The eligibility for these benefits depends on the realization of export proceeds in foreign currency. However, payments received in Indian Rupees through a VASTRO account are also eligible for export benefits.