On September 6, 2023, the Ministry of Finance, Government of India, released a critical Notification No. 64/2023-Cus (NT), amending the rates of exchange for various foreign currencies. Issued under Section 14 of the Customs Act, 1962, this new regulation will affect the valuation of both imported and exported goods. Here, we dive deep into the details of this latest notification and examine its potential implications.
What’s New in Notification No. 64/2023-Cus (NT)?
The new notification supersedes the earlier Notification No. 61/2023-Customs(N.T.), dated August 17, 2023, and introduces a revised rate of exchange for a wide range of foreign currencies. Effective from September 7, 2023, these changes are aimed at aligning the exchange rates for custom valuation purposes with current market conditions.
The Rates: According to Schedule I, new rates for notable currencies are as follows:
- US Dollar: 83.95 (For Imported Goods), 82.20 (For Export Goods)
- EURO: 90.75 (For Imported Goods), 87.60 (For Export Goods)
- Australian Dollar: 54.20 (For Imported Goods), 51.85 (For Export Goods)
Schedule II features rates for the Japanese Yen and Korean Won, with 100 units being 57.2 and 6.45 respectively for imported goods.
Who Does This Affect?
1. Importers: Changes in the exchange rate can make importing goods more or less costly, depending on the direction of the currency adjustment.
2. Exporters: A rate change can impact the valuation of goods exported from India, thus affecting the competitiveness of these goods in the global market.
3. Consumers: Ultimately, changes in the rate of exchange may lead to changes in the retail price of imported goods.
4. Financial Markets: Fluctuations in currency exchange rates can also impact the country’s financial markets.
Legal and Regulatory Considerations: This new regulation comes into effect under Section 14 of the Customs Act, 1962, and has been duly authenticated by Harish Kumar, Under Secretary to the Govt. of India. The Central Board of Indirect Taxes and Customs is responsible for implementing this notification, which aims to facilitate fair and accurate customs valuation.
Conclusion: Notification No. 64/2023-Cus (NT) is a significant development in the context of customs valuation in India. It updates the exchange rates of numerous foreign currencies in line with current market dynamics, affecting importers, exporters, consumers, and financial markets alike. As global markets continue to fluctuate, such adjustments are crucial for maintaining economic stability and fairness in trade. Stakeholders in these areas should stay informed and adapt to these new rates to make the most out of their international trade operations.
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Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
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Notification No. 64/2023 – Customs (N.T.) Dated: 6th September, 2023
In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the Notification No. 61/2023-Customs(N.T.), dated 17th August, 2023 except as respects things done or omitted to be done before such supersession, the Central Board of Indirect Taxes and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 7th September, 2023, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.
SCHEDULE-I
| Sl. No. |
Foreign Currency | Rate of exchange of one unit of foreign currency equivalent to Indian rupees | |
| (1) | (2) | (3) | |
| (a) | (b) | ||
| (For Imported Goods) | (For Export Goods) | ||
| 1. | Australian Dollar | 54.20 | 51.85 |
| 2. | Bahraini Dinar | 227.25 | 213.75 |
| 3. | Canadian Dollar | 61.90 | 59.90 |
| 4. | Chinese Yuan | 11.55 | 11.20 |
| 5. | Danish Kroner | 12.15 | 11.75 |
| 6. | EURO | 90.75 | 87.60 |
| 7. | Hong Kong Dollar | 10.80 | 10.40 |
| 8. | Kuwaiti Dinar | 277.75 | 261.15 |
| 9. | New Zealand Dollar | 50.25 | 47.90 |
| 10. | Norwegian Kroner | 7.85 | 7.60 |
| 11. | Pound Sterling | 106.20 | 102.70 |
| 12. | Qatari Riyal | 23.50 | 22.10 |
| 13. | Saudi Arabian Riyal | 22.85 | 21.50 |
| 14. | Singapore Dollar | 62.00 | 60.00 |
| 15. | South African Rand | 4.45 | 4.20 |
| 16. | Swedish Kroner | 7.60 | 7.35 |
| 17. | Swiss Franc | 95.30 | 91.70 |
| 18. | Turkish Lira | 3.20 | 3.00 |
| 19. | UAE Dirham | 23.35 | 21.95 |
| 20. | US Dollar | 83.95 | 82.20 |
SCHEDULE-II
| Sl. No. |
Foreign Currency | Rate of exchange of 100 units of foreign currency equivalent to Indian rupees | |
| (1) | (2) | (3) | |
| (a) | (b) | ||
| (For Imported Goods) | (For Export Goods) | ||
| 1. | Japanese Yen | 57.2 | 55.45 |
| 2. | Korean Won | 6.45 | 6.05 |
[F.No. 468/01/2023-Cus.V]
(Harish Kumar)
Under Secretary to the Govt. of India
