Export under indian rupees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2013 I want to know export should be made under foreign cuurency or not
If yes or no what are the implication on duty draw back schme

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 March 2013 there is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under the Foreign Exchange Management Act 1999. Further, in terms of Para 2.40 of the Foreign Trade Policy (August 27, 2009 - March 31, 2014), “All export contracts and invoices shall be denominated either in freely convertible currency or in Indian Rupees but export proceeds shall be realised in freely convertible currency. However, export proceeds against specific exports may also be realised in rupees provided it is through a freely convertible Vostro account of a non-resident bank situated in any country, other than a member country of the ACU or Nepal or Bhutan”. Indian Rupee is not a freely convertible currency,