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.

[MUKUND THAKKAR]

which benefit are you looking for against this export as per FTP. ?

[KASTURI SETHI]

Exports to Nepal now at par with exports to other countries (except Bhutan) - DRP to Nepal withdrawn

Circular No. 958/1/2012-CX., dated 13-1-2012

[Arti Gupta]

Thank you Kasturi Sir.

It means that to avail the benefit of Advance Authroization and also to avail the export incentives under Capter 3 of FTP , the export proceeds must be realized in foreign currency?

Same goes for the Excise Duty benefits in case of Physical Exports.

[MUKUND THAKKAR]

chapter -3 group-c is covered NEPAL, so you are eligible for incentive under chapter-3. benefit against under advance authorization is available only subject to file the Bill of Export because shipping bill is possible in case of export by sea. by road Bill of Export is req. to be file.

[MUKUND THAKKAR]

in addition of above please read shipping bill in place of Bill of Export.

[Arti Gupta]

Thank you Mukundji,But the query is that are these benefits applicable to me only if the export proceeds are realized in freely convertible currency or the benefits are applicable even if the proceeds are realized in INR or Nepalese Rupee?

[MUKUND THAKKAR]

If payments in Indian rupees received through VASTRO account is also eligible for export benefits.

AI Summary

Exports to Nepal parity: incentives and advance authorization benefits apply even when proceeds received in local currency via VASTRO. Exports to Nepal are at par with other countries and qualify for export incentives under Group C eligibility. Advance authorization and excise-related benefits require filing the Bill of Export or shipping bill as the export document. Payments realized in Indian rupees routed through a VASTRO account were indicated as eligible for the export benefits, subject to documentary compliance.