Customs Exchange Rates effective from 8th December, 2023

Introduction: The Government of India, through the Ministry of Finance’s Department of Revenue and the Central Board of Indirect Taxes and Customs, has issued Notification No. 90/2023-Customs (N.T.) on December 7, 2023. This notification, exercising powers under section 14 of the Customs Act, 1962, introduces updated exchange rates for various foreign currencies concerning both imported and exported goods.

Detailed Analysis:

1. Legal Authority: Notification No. 90/2023 is grounded in the Customs Act, 1962, specifically section 14. It supersedes the previous Notification No. 84/2023-Customs(N.T.) and establishes the legal basis for determining exchange rates.

2. Scope of Revision: The notification covers foreign currencies in two schedules (Schedule I and Schedule II) for both imported and exported goods. Each currency’s exchange rate against the Indian rupee is meticulously outlined, providing clarity for businesses engaged in international trade.

3. Currency Specifics: The schedules encompass a wide range of currencies, including major ones like the US Dollar, Euro, Japanese Yen, and more. The rates are specified for both imported and exported goods, offering a comprehensive view of the currency exchange scenario.

4. Impact on Importers and Exporters: The revised rates directly impact businesses involved in importing and exporting goods. Understanding the new rates is crucial for accurate financial planning, pricing strategies, and overall trade operations.

5. Comparative Analysis: A comparative analysis of the old and new rates can unveil insights into currency fluctuations. Businesses can leverage this information to adapt to market dynamics, optimize profits, and mitigate currency-related risks.

6. Government’s Economic Considerations: The government’s decision to revise exchange rates reflects its economic outlook and considerations. The article explores potential factors influencing this decision and their broader implications on international trade.

Conclusion: Notification No. 90/2023-Customs introduces a significant shift in exchange rates for foreign currencies concerning imported and exported goods. Businesses engaging in international trade must pay close attention to these revisions to navigate the evolving economic landscape effectively.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
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Notification No. 90/2023 – Customs (N.T.) | Dated: 7^th December, 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. 84/2023-Customs(N.T.), dated 16^th November, 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 8th December, 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

SCHEDULE-II

[F. No. 468/01/2023-Cus.V]

(Komila Punia)
Deputy Secretary to the Govt. of India