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Base for Computation of the DEPB Rate when the Exchange Rate on the Date
of �Let Export� exceeds the Actual Realisation Rate
Policy
Circular No. 17 dated 9th January 2003
As
per para 4.43 of the Handbook of Procedures (Vol 1) the exchange rate to be used
for conversion of the foreign currency receipts into equivalent rupees for
computation of the credit under the DEPB Scheme would be the same rate as
notified by Ministry of Finance relevant to the date of order of �let
export� by the Customs.
Accordingly,
under para 4.43 of Handbook of Procedures (Vol 1), the rate of exchange as
notified by the Ministry of Finance is to be used for converting foreign
currency export receipt into rupee equivalent for computing the credit under
DEPB Scheme. The relevant date of application of the exchange rate notified by
the Ministry of Finance would be the date of �Let Export� order by the
Customs.
Fluctuation
in the exchange rate would mean appreciation in the value of rupee at times or
depreciation in its value some other times. Recently, due to continuous
appreciation of Indian Rupee vis vis major currencies, it is possible that the
rate notified by Ministry of Finance may exceed the rate which export proceeds
were actually realised. The matter has been represented to us.
On
considering the matter carefully, it has been decided that uniformity and
consistency in our policy would dictate accepting the Ministry of Finance�s
notified exchange rate for all our transactions. This is reiterated for the
information of all the regional licencing authorities who may take action
accordingly.
This
issues with the approval of the Director General of Foreign Trade.
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