Treatment of supplies as imports for NFE affects amortization of imported capital goods and foreign technology fees.

Supplies not constituting physical import are treated as imports for NFE where they effect foreign exchange outflow or equivalent acquisition, including high seas purchases, foreign exchange payments (commission, royalty, fees, dividends, interest on external borrowings), and goods from SEZ/EOU/EHTP/STP/BTP/bonded warehouses or exhibitions. Imported capital goods and lump sum foreign technology fees are amortized at 10% per year for ten years for NFE; free, loaned, or leased goods are included, and exit before ten years requires NFE calculation using depreciation rates.

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