Rupee Payment for Export of Import Traded Goods Allowed with 15% Value Add

Countries to be Notified, Iran Expected in First List

[DGFT Notification No. 16 dated 6^th June 2013]

Subject: Amendment in Para 2.35 (b) of Foreign Trade Policy, 2009-2014.

In exercise of powers conferred under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby makes the following amendment in paragraph 2.35 (b) of Foreign Trade Policy, 2009-2014:

2. The existing sentence in Para 2.35(b) of Foreign Trade Policy, 2009-2014 will be followed by:

“…………except to countries as notified by DGFT from time to time. Export of such goods will be permitted against payment in Indian rupees to the notified countries subject to at least 15% value addition.”

3. After the amendment, Para 2.35(b) of Foreign Trade Policy, 2009-2014 shall read as under:

“Exports of such goods imported against payment in freely convertible currency would be permitted against payment in freely convertible currency except to countries as notified by DGFT from time to time. Export of such goods will be permitted against payment in Indian rupees to the notified countries subject to at least 15% value addition.”

4. Effect of this Public Notice

An enabling provision has been made to allow export of goods imported against payment in freely convertible currency where export proceeds will be realized in rupees. This dispensation will be applicable to such countries as would be notified by DGFT from time to time. They also have to achieve 15% value addition.