CBIC to notify won, Turkish lira as money for exchange rate

New Delhi: The CBIC Wednesday said it will include Korean Won and Turkish Lira in the list of currencies for exchange rates for the purpose of valuing imports and exports.

The Central Board of Indirect Taxes and Customs (CBIC) notifies the Rate of Exchange for the purpose of conversion of foreign exchange to Indian rupees and vice versa for assessment of imports and exports, under Section 14 of the Customs Act, 1962.

"Currently, CBIC notifies exchange rates for 20 currencies for the purpose of valuation of imported and exported goods and it has been now decided to include 2 more currencies namely Korean Won and Turkish Lira in the list of such currencies," a finance ministry statement said.

The ministry said that notifying Korean Won (WON) and Turkish Lira (TKY) by CBIC will facilitate trade and business by easing the process of conversion of these currencies into rupee and vice versa.

The initiative is also anticipated to help the exporters claim the benefits of Merchandise Export Incentive Scheme (MEIS) easily, as the rates of TKY and WON will be readily available on the realisation date of remittances.

"Overall, it is expected to decrease the transaction cost and enhance the ease of doing business, thereby, benefitting the Indian, Korean and Turkish businesses," the ministry added.

The bilateral trade between India and South Korea grew to $16.36 billion during 2017-18 from $12.59 billion in 2016-17 and it is ranked 8th among India's trade partners in terms of imports during 2017-18.

Since India has Comprehensive Economic Partnership Agreement with South Korea, the trade flow between the two countries is expected to grow further. Bilateral trade between India and Turkey also stood at $7.2 billion during 2017-18. More than 150 companies with Indian capital have registered businesses in Turkey in the form of joint-ventures, trade and representative offices, the ministry said.