Clarification on calculation of NFE as per Rule 53 of the SEZ Rules, 2006 for units in SEZ

The Ministry of Commerce & Industry has issued an Instruction No. 41 -  F.No.C.6/9/2009-SEZ- Dated  November, 2009 to all Development Commissioners clarifying that Net Foreign Exchange Earning (NFE) for SEZ units is to be calculated in rupee terms only.In case a unit claims that the NFE is negative due to foreign exchange fluctuations, the Approval Committee may consider the same, on case to case basis, provided the NFE computations are certified by the Authorised Banker of the unit.

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INSTRUCTION NO. 41  -  F.No.C.6/9/2009-SEZ- Dated    the November, 2009

Sub: Clarification on calculation of NFE as per Rule 53 of the SEZ Rules, 2006

Sir/Madam,

I am directed to say that references have been received in this department seeking clarification on the currency in which NFE is to be calculated. The matter has been examined in this department and it is clarified that NFE is to be calculated in rupee terms only.In case a unit is NFE negative and claims that it is due to foreign exchange fluctuation, the Approval Committee may consider such cases provided that the unit gets the computations certified by the Authorised Bank, on a case to case, basis.

This issues with the approval of AS(SEZ).
Yours faithfully,
Sd/-
(R.K.Pandey)
Under Secretary to the Government of India

Issued by: – Government of India, Ministry of Commerce & Industry, Department of Commerce, Udyog Bhawan, New Delhi

issued to:- All Development Commissioners

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