The Central Board of Indirect Taxes and Customs (CBIC) is preparing for a major change in the system regarding the exchange rates of major foreign currencies with the Indian rupee. Soon this change can be implemented and if it happens, then after that the exchange rate of rupee with other currencies will be published everyday.
These People will Help
According to a PTI news, the CBI is soon going to start the system of releasing currency exchange rates on its Integrated Customs Portal on a daily basis instead of fortnightly. The currency exchange rates being released on the Customs or Customs portal on a daily basis will help in keeping a tab on the fluctuations in the exchange rates. This will help importers and exporters to calculate customs duty rates on the basis of daily rates.
This Is the System Now
Presently CBIC notifies the exchange rates of 22 major currencies every fortnight. Based on the rates received from the State Bank of India (SBI), CBIC does this work on the first and third Thursday of every month. The new rates come into force from the next day itself.
This is how change will happen
An official said that the entire process of notification of exchange rates will now be made automatic. The rates received from SBI will be adjusted to the nearest five digits every day and will be uploaded on the ‘Indian Customs National Trade Portal’ (ICEGATE) by 6 PM after integration with the Indian Customs EDI system.
The official said, in order to monitor the fluctuations in exchange rates of currencies more closely, CBIC has decided to publish exchange rates of 22 currencies every day on the ICEGATE portal. Consultation is going on with all the concerned parties in this regard. The new system will be implemented soon.
Expert opinion on the scheme
According to this scheme, in case the exchange rates are not released by SBI on holidays, the rates of the previous day will be applicable. AMRG & Associates Senior Partner Rajat Mohan said the proposed change would help in removing errors in customs duty calculations due to fluctuations in exchange rates.