Duty drawback - foreign convertible currency

[Guest]

Is it an essential requirement to realise the export proceeds in foreign convertible currency for claiming of duty drawback u/s 75 of Customs Act.

[Surender Gupta]

Yes, it is an essential requirement for realising export proceeds as per FAMA - See Rule 16A of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 in "Customs Section" of this site.

AI Summary

Foreign convertible currency requirement: exporters must realise export proceeds to claim duty drawback under applicable rules and FAMA. Realisation of export proceeds in foreign convertible currency is an essential precondition to claiming duty drawback under section 75 of the Customs Act, pursuant to the foreign exchange realisation regime and the Drawback Rules, specifically Rule 16A, and in accordance with FAMA.