Customs Exchange Rates effective from 2nd February, 2024

Introduction: The Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, has issued Notification No. 10/2024 – Customs (N.T.) dated February 1, 2024. This notification, exercising powers under the Customs Act, 1962, establishes new exchange rates for foreign currencies concerning imported and exported goods. This article delves into the details of the notification and its implications on international trade.

Detailed Analysis:

1. Legal Authority and Supersession: The notification derives its authority from section 14 of the Customs Act, 1962. Notably, it supersedes the earlier Notification No. 04/2024-Customs(N.T.), dated January 18, 2024, with effect from February 2, 2024. This change impacts the rate of exchange for conversion between specified foreign currencies and Indian rupees.

2. Schedule I and Schedule II: The notification presents two schedules, each containing a list of foreign currencies along with their corresponding rates of exchange. Schedule I provides rates for a single unit of foreign currency, while Schedule II offers rates for 100 units of foreign currency. Distinct rates are specified for imported and exported goods, creating a nuanced framework for international trade transactions.

3. Impact on Various Currencies: Analyzing the rates reveals fluctuations affecting multiple currencies such as the Australian Dollar, EURO, US Dollar, Japanese Yen, and others. Importers and exporters dealing with these currencies will need to adapt their financial strategies in response to these changes, influencing pricing and competitiveness in the global market.

4. Government’s Perspective: The Customs Notification aims to ensure fair and transparent exchange rates, aligning with the dynamic nature of global currencies. The government seeks to maintain stability in international trade by periodically adjusting these rates based on economic factors.

Conclusion: Notification No. 10/2024 – Customs (N.T.) introduces pivotal changes in the exchange rates for various foreign currencies, impacting the landscape of international trade. Importers, exporters, and businesses involved in cross-border transactions need to stay informed about these adjustments to make informed decisions. The dynamic nature of currency exchange rates necessitates continuous monitoring and adaptation to ensure the smooth flow of goods and services across borders. For a detailed understanding, individuals can refer to the complete notification on the official website of the Central Board of Indirect Taxes and Customs.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

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Notification No. 10/2024 – Customs (N.T.) | Dated the 1st February, 2024

In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the Notification No. 04/2024-Customs(N.T.), dated 18th January, 2024 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 2^nd February, 2024, 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

SCHEDULE-II

[F.No. 468/01/2024-Cus.V]

(Megha Bansal)
Under Secretary to the Govt. of India