IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 Jun 2013 | Removal date: open ended
Still in force

Controls on commercial transactions and investment instruments

 On 6 June 2013, the Indian Ministry of Commerce and Industry issued Notification No.16 (RE-2013)/2009-2014, thereby amending the payment policy for export of imported goods. 
 
Earlier, goods imported with payments in freely convertible currency were permitted to be exported against payment only in freely convertible currency (in the same or substantially the same form). The new policy additionaly allows that for certain destination countries, exports of imported goods are permitted also against payments in Indian rupees, provided the Indian value added to the imported product exceeds 15%. The list of countries to which such a condition is applicable will be maintained by the Director General of Foreign Trade.
 
On 10 June 2013, the Notification No. 17 added Iran to the list of such countries.
 
Although the change provides better facilities to increase trade, it is restrictive in the sense of favouring certain countries over others.

AFFECTED COUNTRIES

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