Export done in Indian rupees and realisation proceeds received in USD and saudi arabian riyals

[Asked by Guest]

Dear Sir

We exported our goods under MEIS scheme, since the contracts were in Indian rupees, and therefore prepared our shipping bills in Indian rupees, but due to some operational reasons our buyers transferred our payments in Saudi riyals and USD dollars.

Now when we have submitted our claim for MEIS entitlement, the DGFT is asking for a confirmation letter from our bankers that the payments have been received through VOSTRO ACCOUNT, to which our bankers state that the payments have been received through the NOSTRO BRC are given in USD and Saudi Riyals, hence no transaction has been routed through VOSTRO ACCOUNT.

Please advise that how we can address the issue.

Thanks in advance

AI Summary

Realization of export proceeds in freely convertible currency required; payments via nostro do not qualify for incentive entitlement.
MEIS eligibility requires realization of export proceeds in freely convertible foreign currency or, where allowed, in INR only if received through a freely convertible Vostro account of a non-resident bank. Payments received and evidenced through a Nostro account do not meet this realization requirement; DGFT has therefore required banker confirmation of Vostro receipt and has denied MEIS entitlement where proceeds were received via Nostro.