Rupee Settlement Allowed for International Trade

· Decision to facilitate and ease international trade transactions in Indian Rupees

· Policy Paragraphs Amended for-

Ø 2.46 Import for export

Ø 2.53 Export to Iran —Realisations in Indian Rupees to be eligible for FTP benefits/incentives

Ø 3.20 Status Holder

Ø 4.21 Currency for Realisation of Export Proceeds

The Government of India has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to allow for International Trade Settlement in Indian Rupees (INR) i.e., invoicing, payment, and settlement of exports / imports in Indian Rupees. Accordingly, the Directorate General of Foreign Trade (DGFT) had earlier introduced Para 2.52(d) vide Notification No. 33/2015-20 dated 16.09.2022 to permit invoicing, payment and settlements exports and imports in INR in sync with RBI’s A.P. (DIR Series) Circular No.10 dated 11th July 2022.

In continuation to the above notification, changes have been introduced under Para 2.53 of the Foreign Trade Policy, for grant of exports benefits / fulfilment of Export Obligation under the Foreign Trade Policy, for export realisations in Indian Rupees as per the RBI guidelines dated 11th July 2022.

The updated provisions for Export Realisation in Indian rupees been notified for, imports for exports (Para 2.46 of FTP), export performance for recognition as Status Holders (Para 3.20 of FTP), Realisation of export proceeds under Advance Authorisation (AA) and Duty Free Import Authorisation (DFIA) schemes (Para 4.21 of FTP) and Realisation of Export Proceeds under Export Promotion Capital Goods (EPCG) Scheme (Para 5.11 of HBP).

Accordingly, benefits / fulfilment of Export Obligation under the Foreign Trade Policy has been extended for realisations in Indian Rupees as per the RBI guidelines dated 11th July 2022. Given the rise in interest in internationalisation of Indian Rupee, the given Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees.

[DGFT Notification No. 43/2015-2020 dated 9 November 2022]

Effect of this Notification: Amendments under FTP are notified, to permit exports benefits /fulfilment of Export Obligations for Invoicing, payment and settlement of exports and imports in INR, as per RBI’s A.P. (DIR Series) Circular No. 10 dated 11th July, 2022. This shall come into force with immediate effect.

Subject: Amendments under the Foreign Trade Policy in sync with RBI A.P.(DIR Series) Circular No.10 dated 11th July 2022

S.O. 5227(E): In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby makes the following amendments in the Foreign Trade Policy 2015-20, with immediate effect, in sync with the RBI’s A.P. (DIR Series) Circular No.10 dated 11th July, 2022:

Sl.No.	Existing Para	Revised Para
1.	2.46 Import for export	2.46 Import for export
	I. (b) Goods, including capital goods (both new and second hand), may be imported for export provided: iii. Export is against freely convertible currency. II. (a) Goods imported against payment in freely convertible currency would be permitted for export only against payment in freely convertible currency, unless otherwise notified by DGFT.	I. (b) Goods, including capital goods (both new and second hand), may be imported for export provided: iii. Export is against freely convertible currency or as per 2.52(d)(ii) of FTP. II. (a) Goods imported against payment in freely convertible currency would be permitted for export only against payment in freely convertible currency, unless otherwise notified by DGFT. Goods imported under Para 2.52(d)(i) would be permitted for exports only against payments as per Para 2.52(d)(ii), unless otherwise notified by DGFT.
2.	2.53 Export to Iran —Realisations in Indian Rupees to be eligible for FTP benefits/incentives	2.53 Applicability of FTP Schemes for Export Realisations in Indian Rupees
	Notwithstanding the provisions contained in para 2.52 (a) above, export proceeds realized in Indian Rupees against exports to Iran are permitted to avail exports benefits / incentives under the Foreign Trade Policy (2015-20), at par with export proceeds realized in freely convertible currency.	(i) Export proceeds realized in Indian Rupees against exports to Iran are permitted to avail exports benefits/fulfilment of Export Obligations under the Foreign Trade Policy (2015-20), at par with export proceeds realized in freely convertible currency, subject to compliance of para 2.18 of the FTP. (ii) Export proceeds realized in Indian Rupees as per para 2.52(d)(ii) are permitted to avail exports benefits/fulfilment of Export Obligations under the Foreign Trade Policy (2015-20).
3.	3.20 Status Holder	3.20 Status Holder
	(b) All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition will depend on export performance. An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years (for Gems & Jewellery Sector the performance during the current and previous two financial years shall be considered for recognition as status holder) as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB of export earning in freely convertible foreign currencies.	b) All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition will depend on export performance. An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years (for Gems & Jewellery Sector the performance during the current and previous two financial years shall be considered for recognition as status holder) as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB of export earning in freely convertible foreign currencies or in Indian Rupees as per para 2.53 of the FTP.
4.	4.21 Currency for Realisation of Export Proceeds	4.21 Currency for Realisation of Export Proceeds
	(i) Export proceeds shall be realized in freely convertible currency except otherwise specified. Provisions regarding realisation and non-realisation of export proceeds are given in paragraph 2.52, 2.53 and 2.54 of FTP.	(i) Export proceeds shall be realized in freely convertible currency or in Indian Rupees as per para 2.53 of FTP, except otherwise specified. Provisions regarding realisation and non-realisation of export proceeds are given in paragraph 2.52, 2.53 and 2.54 of FTP.

This issues with the approval of Minister of Commerce & Industry.

[File No. 01/93/180/32/AM-19/PC.II(B)/E- 174301