ENA MSME 2022-10-27 07:45:29 <p><span style="font-size:14px"><strong>New Delhi, Oct 27 (KNN)</strong> In an effort to boost shipments to countries like Russia the government is likely to allow exporters settling their trades in rupees to use export incentives and duty rebates under Indias foreign trade policy.</span></p> <p><span style="font-size:14px">After receiving an approval from the Finance Ministry, the Directorate General of Foreign Trade (DGFT) may issue a clarification on this matter soon, reported Mint citing government officials.</span></p> <p><span style="font-size:14px"><strong><a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a></strong></span></p> <p><span style="font-size:14px">Presently, if payment or export realizations come in freely convertible currencies including the dollar, British pound, euro and yen, only then incentives to exporters in the form of duty drawbacks, EPCG incentives, and rebates on duties and taxes under different government schemes ROSCTL and RODTEP are available.</span></p> <p><span style="font-size:14px">With the clarification, the FTP will be suitably amended to enable exporters to claim export benefits for settling trade in rupees.</span></p> <p><span style="font-size:14px">To facilitate trade in rupee it is reported that Russias Gazprombank has opened a special rupee account with state-owned UCO Bank. </span></p> <p><span style="font-size:14px">Earlier in July the RBI introduced a rupee settlement system for international trade.</span></p> <p><span style="font-size:14px">This involves invoicing, payment, and settlement of exports and imports to all countries, on the central banks approval, can be in Indian rupees. </span></p> <p><span style="font-size:14px">To use this mechanism banks will need approval from the central bank. </span></p> <p><span style="font-size:14px">Under this mechanism, exporters and importers can use a Special Vostro account linked to the correspondent bank of the partner country for receipts and payments denominated in rupees. <em><strong>(KNN Bureau)</strong></em></span></p> 30990 https://knnindia.co.in/news/newsdetails/msme/exporters-to-get-incentives-and-duty-rebates-for-settling-trades-in-rupees 2022-10-27 07:45:29 knnindia.co.in