**Summary:**
Public Notice No. 35/2015-2020, issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, dated November 9, 2022, amends Para 5.11 of the Handbook of Procedures (HBP) 2015-2020, effective immediately. This amendment aligns with RBI's A.P. DIR Series Circular No. 10 dated July 11, 2022, and pertains to the realization of export proceeds.
The revised para 5.11 now permits the invoicing, payment, and settlement of exports and imports in Indian Rupees (INR) for Export Proceeds under the Export Promotion Capital Goods (EPCG) Scheme. The existing regulation stated that export proceeds must be realized in freely convertible currency, except for deemed exports supplies under Chapter 7. The amendment clarifies that exports to SEZ units/Supplies to developers/co-developers, irrespective of the currency of realization, will be counted for discharge of Export Obligation. Further, realization in the case of supplies to SEZ units shall be from the foreign currency account of the SEZ unit.
For further information, contact the Director General of Foreign Trade at dgft@nic.in, referencing File No. 01/93/180/32/AM19/PC-IIB/E-17430.
Key Entities Referenced
Directorate General of Foreign Trade: A department under the Ministry of Commerce and Industry, responsible for implementing the Foreign Trade Policy.
Foreign Trade Policy, 2015-2020: A set of guidelines and regulations governing import and export activities in India during the specified period.
Handbook of Procedures 2015-20: A document providing detailed procedures and guidelines related to the Foreign Trade Policy 2015-2020.
RBI A.P.DIR Series Circular No.10 dated 11th July 2022: A circular issued by the Reserve Bank of India (RBI) related to foreign exchange regulations.
Export Promotion Capital Goods Scheme: A scheme that facilitates import of capital goods for producing quality goods and services to enhance export competitiveness.
Chapter 7: Refers to a specific section within the Foreign Trade Policy or Handbook of Procedures, likely dealing with deemed exports.
Special Economic Zone: A specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
Santosh Kumar Sarangi: Director General of Foreign Trade & Ex officio Addl. Secretary to the Government of India.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-I,
SECTION-I]
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Public Notice No. 35 / 2015-20
New Delhi, Dated 9"" November, 2022
Subject: Amendments in Para 5.11 of the HBP in syne with RBI A.P.(DIR Series) Circular
No.10 dated 11" July 2022
In exercise of the powers conferred under Para 1.03 and 2.04 of the Foreign Trade Policy,
2015-2020, the Director General of Foreign Trade hereby makes the following amendments in
Para 5.11 of the Handbook of Procedures 2015-20, with immediate effect, in syne with the RBI’s
A.P. (DIR Series) Circular No.10 dated 11" July, 2022:
Existing Para Revised Para
5.11: Realization of Export proceeds 5.11: Realization of Export proceeds
Export proceeds shall be realized in freely Export proceeds shall be realized in freely
convertible currency except for deemed convertible currency or in Indian Rupees
exports supplies under Chapter 7. Exports as per para 2.53 of FTP, except for
to SEZ units /Supplies to developers/ co- deemed exports supplies under Chapter 7.
developers irrespective of currency of Exports to SEZ units /Supplies to
realization would also be counted for developers/ co-developers irrespective of
discharge of Export Obligation. currency of realization would also be
Realization in case of supplies to SEZ counted for discharge of Export
units shall be from foreign currency Obligation. Realization in case of supplies
account of the SEZ unit. to SEZ units shall be from foreign
currency account of the SEZ unit.
2: Effect of Public Notice: Amendment in Para 5.11 of the HBP are notified, to permit the
Invoicing, payment and settlement of exports and imports in INR for Export Proceeds under
EPCG Scheme, in syne with RBI’s A.P. (DIR Series) Circular No. 10 dated 11" July, 2022. This
shall come into force with immediate effect.
xo
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex- officio Addl. Secretary to the Government of India
E-mail: dgft@nic.in.
[File No. 01/93/180/32/AM-19/PC.II(B)/E-17430]