Govt to Automate Customs Exchange Rate Issuance Process w.e.f. 4th July 2024 Know Complete Details Here [Read Circular]

The government has announced the automation of exchange rate notifications for imported and exported goods. This change will take effect from the 4th of July, 2024. The  Central Board of Indirect Taxes and Customs ( CBIC ) has issued circular no. 07/2024 on 25th June 2024.

According to Section 14 of the Customs Act, the value of any imported or exported goods must be calculated with reference to the exchange rate in force on the date a bill of entry is presented under Section 46 or a shipping bill/bill of export is presented under Section 50.

The CBIC currently notifies exchange rates for 22 currencies (listed in the annexure) twice a month, on the 1st and 3rd Thursdays. These rates become effective from midnight the following day. If the due date falls on a holiday, the rates are notified on the previous working day.

Additionally, if the exchange rate of a currency fluctuates by more than ±5% compared to the notified rate on any given day, the rate for that currency is re-notified to take effect from the following day. These notifications are based on the rates obtained from the State Bank of India (SBI) daily.

SBI provides 'card rates,' including 'Bill rates,' 'TT rates,' and 'TC rates,' which the CBIC adjusts to the nearest five paise and uses for transactions up to Rs 10 lakh. The existing process is manual, with rates manually incorporated into the Indian Customs EDI System (ICES).

To ensure uninterrupted accessibility of exchange rates, the CBIC has implemented a contingency plan. Nodal Officers have been appointed at SBI, the Board, ICD (Patparganj), Air Cargo Complex (Bengaluru), and DG (Systems) to monitor and manually intervene if needed. Should there be any issues with electronic transmission from SBI or incomplete messages, the last updated rates will remain in force, and the revised rates will be published the following day.

The automated system for issuing exchange rates will involve SBI forwarding exchange rate data to ICEGATE through message exchange, adjusting these rates to the nearest five paise, and integrating them with ICES. These rates will be published on the ICEGATE website at 6:00 p.m. according to the existing schedule, becoming effective from midnight the following day. The rates published online will also be stored for future reference.

This transition to automation is expected to improve the efficiency and accuracy of exchange rate notifications, reducing manual intervention and the potential for errors. A link will be provided on the CBIC website to direct users to the ICEGATE website where the published rates will be available.

Public notices will be issued to guide stakeholders through this transition, and any difficulties in implementation should be reported to the Board. These steps are for modernization and ease of doing business in the customs and trade sector.

List of Currencies

1	Australian Dollar	12	Qatari Riyal
2	Bahraini Dinar	13	Saudi Arabian Riyal
3	Canadian Dollar	14	Singapore Dollar
4	Chinese Yuan	15	South African Rand
5	Danish Kroner	16	Swedish Kroner
6	EURO	17	Swiss Franc
7	Hong Kong Dollar	18	Turkish Lira
8	Kuwaiti Dinar	19	UAE Dirham
9	New Zealand Dollar	20	US Dollar
10	Norwegian Kroner	21	Japanese Yen
11	Pound Sterling	22	Korean Won

Note: The list of currencies is subject to revision from time to time, based on requirement of the trade.

To Read the full text of the Order CLICK HERE

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