DGFT notifies norms for export incentives on rupee receipts

NEW DELHI: The Directorate General of Foreign Trade (DGFT) on Wednesday notified norms for permitting exporters to avail incentives under the foreign trade policy, even on realisation in rupee.

The DGFT, under the commerce ministry, has already allowed invoicing, payment and settlement of exports and imports in the Indian rupee, a move aimed at facilitating trade in the domestic currency.

In July, the Reserve Bank of India (RBI) asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of the increasing interest of the global trading community in the domestic currency.

The notification said that changes have been introduced in the Foreign Trade Policy (FTP) for the grant of export benefits, incentives, fulfilment of an export obligation, and for export realisations in Indian rupees as per the RBI guidelines released in July.

"Accordingly benefits/incentives/fulfilment of the export obligation under the Foreign Trade Policy has been extended for realisations in Indian rupees as per the RBI guidelines dated July 11, 2022," it said.

Given the rise in interest in the internationalisation of the Indian rupee, it said, this decision would facilitate and bring ease in international trade transactions in rupees.

"The updated provisions for export realisation in Indian rupees have been notified for imports, for exports, export performance for recognition as status holders, the realisation of export proceeds under Advance Authorisation (AA) and Duty-Free Import Authorisation (DFIA) schemes and realisation of export proceeds under Export Promotion Capital Goods (EPCG) scheme," it added.