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??

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.