Customs Notification

Customs Foreign Exchange Rates Effective from 16th February

A notification no. 13/2024-custom (N.T) was issued on 15th February, under the guidance of the government of India, Ministry of Finance, Department of Revenue on the website of the Central Board of Indirect Taxes and Customs. This has come as a circular in the CBIC official website under the Customs Act, notifying the new exchange rates for foreign currencies related to import and export goods.

What is fluctuation in the currency exchange rate?

Fluctuation in the currency exchange rate is a constant change of foreign currency rates of one country in terms of another. Such a foreign exchange rate signifies a country’s economic strength depending on factors such as geopolitical events, interest rates, capital flows, etc. Fluctuations in the currency exchange rate impact the economy of a nation directly.

Systematic Exploration

1. The central board of Indirect taxes and customs under section 14 of the Customs Act has put up this notification to supersede the earlier notification no.10/2024 customs (N.T.), dated 1^st February 2024, on various rates of exchange of conversion of various foreign currencies as mention in the schedule I and II of the said circular notifications. The same shall come into effect from 16^th February 2024.
2. Both Schedule I and Schedule II present the name of foreign currency and the rate of units of foreign currency equivalent to the Indian rupees; Schedule I specifically mentions the exchange rate of one unit, whereas Schedule II mentions the units of 100 foreign currencies equivalent to Indian rupees.
3. Schedule I list of foreign currency includes Australian dollar, Bahraini Dinar, Canadian dollar, Chinese yuan, Danish Kroner, Euro, Hong Kong dollar, Kuwaiti dinar, New Zealand dollar, Norwegian kroner, Pound sterling, Qatari Riyal, Saudi Arabian Riyal, Singapore Dollar, South African rand, Swedish kroner, Swiss franc, Turkish lira, UAE Dirham, US Dollar, Japanese Yen and Korean Won.
4. The currency exchange notifications have showcased the fluctuation rate of Indian currencies and their global businesses, impacting the exporter and importer business. These exchange rate notifications have shown that multiple foreign currencies are impacted, and such fluctuations may be for the long term or short term. Thus, it is recommended that a businessman engaging in import and export business has a strategic plan to overcome such shortcomings.

Conclusion

This Notification No.13/2024-customs (N.T.) ¹ has notified changes in the earlier circular dated 1^st February with notification no.10/2024-customs (N.T.) with a slight change in the various foreign currencies exchange rate, showing the Indian graph of fluctuations in the global market, impacting both import and export businesses. However, a businessman engaging in cross-border transactions must keep updated with such changes in the foreign currency rates to avoid any ignorant losses in the global market. It is thus recommended to keep oneself updated by following the official websites of the Central Board of Indirect Taxes and Customs.

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1. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2006325