4.2.2

DFRC may be issued for physical exports against freely convertible currency / physical exports to SEZ whether against freely convertible currency or non-convertible currency/ supplies effected under paragraph 8.2 of the Policy (except for supplies made to DFRC holder).

DFRC may also be issued in respect of physical exports (other than supplies to SEZ) for which payments are received in nonconvertible currency. Such exports shall, however, be subject to value addition and conditions as specified in Appendix-11 of Handbook of Procedures (Vol.1).