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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs+
Circular No. 1058/07/2017-CX
New Delhi, the 16th August, 2017
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal
Commissioners of Central Tax & Central Excise (All)
Web-master, CBEC
Madam/Sir,
Sub: Clarification on requirement of submitting Bank certificate evidencing
receipt of payment in freely convertible currency under Notification
No.
45/2001-CE (NT) dated 26th June, 2001 for export to Bhutan for specified
Hydroelectric Projects– reg.
References have been received in the Board seeking clarification on, whether
proof of export, namely Bank certificate evidencing receipt of payment in freely
convertible currency as required under Notification
No. 45/2001-CE (NT) dated
26th June, 2001 as amended, for export of commodities to Bhutan would have to be
submitted in the case of export for the following Hydroelectric projects,
namely, Kurichu Hydro Electric Project, Tala Hydro Electric Project,
Punatsangechhu-I Hydro Electric Project, Punatsangchhu-II Hydro-Electric
Project, Mangdechhu Hydro-Electric Project and Kholongchhu Hydro Electric
Project, which are being constructed with the assistance of Government of India
as part of Bilateral Agreements with Bhutan.
2. The said hydroelectric projects in Bhutan are being constructed with the
aid of the Government of India as part of bilateral agreements between the
Government of India and the Royal Government of Bhutan. The aid inter alia is by
way of grant or loan by the Government of India and has approval of the
Government of India along with facility for payment in INR for exports to
Bhutan.
3. Further, Article VII of the India-Bhutan Agreement on Trade, Commerce and
Transit provides that bilateral trade between India and Bhutan shall be in INR
or Ngultrums. Since the exports in case of the aforementioned Hydroelectric
projects are in INR, the condition for submitting Bank certificate evidencing
receipt of payment in freely convertible currency as required under Notification
No. 45/2001-CE (NT) dated 26th June, 2001 as amended have to be read harmoniously
with the Agreement on Trade, Commerce and Transit as well as decisions of the
Government of India.
4. Accordingly, it is clarified that payment condition relating to currency
with regard to export of commodities to Bhutan for the said Hydroelectric
projects shall be considered to have been discharged in cases where payment has
been received in Indian currency through the banking channels.
5. Any difficulty in the implementation of this circular may be brought to
the notice of the Board. Hindi version will follow.
[F. No.201/08/2010-CX 6]
(Shankar Prasad Sarma)
Under Secretary to the
Government of India
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