5.7.2

Export proceeds shall be realised in freely convertible currency except for deemed exports under Paragraph 5.4(iv) of the Foreign Trade Policy [OLD- paragraph 5.7.3]. However, in case of exports against irrevocable letter of credit or if the bill of exchange is unconditionally Avalised/ Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank, realisation of export proceeds need not be insisted for fulfillment of export obligation provided the final receipts are in free foreign exchange.

(In above paragraph 5.7.2 the words "Paragraph 5.4(iv) of the Foreign Trade Policy" has been amended vide PN.NO. 11/2006, DT. 24/05/2006)