PAYMENT FROM FOREIGN CURRENCY ACCOUNT WHILE DEEMED EXPORT TO SEZ

[satish padhiyar]

WE HAVE EXPORTED INTO SEZ UNDER ADVANCE AUTHORISATION. NOW DGFT RAISE A QUERY REGARDING PAYMENT RECEIVED FROM SEZ FROM FOREIGN CURRENCY ACCOUNT. SO PAYMENT FROM FOREIGN CURRENCY ACCOUNT IS COMPLUSURY OR NOT??

[YAGAY andSUN]

FTPPara 4.21 Currency for Realization of Export Proceeds:-

(i) ..............................................

(ii) .............................................

(iii) Export to SEZ Units shall be taken into account for discharge of export obligation provided payment is realised from Foreign Currency Account of the SEZ unit.

(iv) Export to SEZ Developers / Co-developers can also be taken into account for discharge of export obligation even if payment is realized in Indian Rupees.

(v) Authorization holder needs to file Bill of Export for export to SEZ unit / developer / co-developer in accordance with the procedures given in SEZ Rules, 2006.

AI Summary

Clarification on Export Payments: SEZ Units Require Foreign Currency; SEZ Developers Can Pay in Indian Rupees. SEZ Rules, 2006 Apply. A query was raised regarding whether payment from a foreign currency account is mandatory for exports to a Special Economic Zone (SEZ) under an Advance Authorization. The response clarified that for exports to SEZ units, payment must be realized from the SEZ unit's foreign currency account to fulfill export obligations. However, for exports to SEZ developers or co-developers, payments can be realized in Indian Rupees. Additionally, the authorization holder must file a Bill of Export as per SEZ Rules, 2006.