TaxTMI 
TaxTMI 
Hi, What are the procedure and challenges for claiming duty drawback for export to Nepal / Bhutan if payment is received in: (A) foreign currency (B) INR
Duty Drawback on Export made to nepal/bhutan- Challenges or issue
08 Apr 2025 
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Duty drawback eligibility for exports to Nepal and Bhutan restricted; invoicing and Vostro payment rules determine realization.
Forum contributors report that duty drawback is generally not available for exports to Nepal and Bhutan, though one view allows drawback for Nepal when payment is in freely convertible currency. Exports to those countries have been regarded as normal exports since 1.2.19. The regulatory framework cited includes Foreign Trade Policy provisions permitting invoicing in FCY or INR but requiring realization in FCY except where rupee receipts occur via specified Vostro or Special Rupee Vostro Accounts per RBI rules; ACU settlement norms and conditions for rupee realization under export promotion schemes are also referenced. (AI Summary)
Forum contributors report that duty drawback is generally not available for exports to Nepal and Bhutan, though one view allows drawback for Nepal when payment is in freely convertible currency. Exports to those countries have been regarded as normal exports since 1.2.19. The regulatory framework cited includes Foreign Trade Policy provisions permitting invoicing in FCY or INR but requiring realization in FCY except where rupee receipts occur via specified Vostro or Special Rupee Vostro Accounts per RBI rules; ACU settlement norms and conditions for rupee realization under export promotion schemes are also referenced. (AI Summary)