exports to nepal
A.P. (DIR Series) (2001-2002) Circular No. 10, dated 1-11-2001
As
authorised dealers are aware, in terms of the Reserve Bank Notification Nos.
FEMA 14/RB-2000 and FEMA 17/RB-2000 dated May 3, 2000, all trade transactions
between a person resident in India and a person resident in Nepal may be
settled in rupees. It has now been decided that in case of export of goods to
Nepal, where an importer resident in Nepal has been permitted by the Nepal
Rashtra Bank to make payment in free foreign exchange, such payments shall be
routed through the ACU mechanism.
2. Consequential
changes in the Memorandum ACM will be intimated in due course.
3. Authorised
dealers may bring the contents of the circular to the notice of their
constituents concerned.
4. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).