07/2024 : Launch of Exchange rate Automation Module (ERAM).

Circular No. 07/2024-Customs F. No. 468/l/201 l -SO(Cus5) Govemment of India Ministry of Finance Department of Revenue Central Board oflndirect Taxes & Customs .****r*rl North Block, New Delhi Dated: 25s June, 2024 To. Pr. Chief Commissioners/Chief Commissioners (Customs or Central Tax & Customs) Pr. Directors General/Directors General. all under CBIC Pr. Commissioners/Commissioners of Customs Pr. Additional Directors General/ Additional Directors General, all under CBIC Madam/Sir, Subject: Launch of Exchange Rate Automation Module (ERAM) -reg. In terms ofsection l4 ofthe Customs Act, the value ofany imported goods or export goods shall be calculated with reference to the rate ofexchange as in force on the date on which a bill ofentry is presented under section 46, or a shipping bill/bill ofexport is presented under section 50. For this purpose, Board currently notifies exchange rates of 22 cunencies (listed at Annexure) twice a month, i.e. every lst and 3rd Thursdays. These notified exchange rates become effective frorn midnight of the following day. Where a due date, i.e. lst or 3rd Thursday, falls on a holiday, the rates are notified on the previous working day. l.l Further, on a given day, if it is noticed that exchange rate of a currency has fluctuated more than t 5%o vis-d-vis the notified rate, the rate for that currency is re-notified with effect from the following day. 2. These notifications are based on the rates obtained from the State Bank of India (SBl) on a daily basis. The SBI communicates 'card rates' which include 'Bill rates', 'TT rates' and 'TC rates'to CBIC everyday. While the Bill rates are used in transactions related to Letters of Credit, the TT rates are used in telegraphic transfers and TC rates for travellers' cheques. The rates notified by the Board are the Bill rates (for transaction up to Rs l0 lakh) received from SBI, adjusted to the nearest five paise. 3. The existing process ofnotifiing exchange rates is manual. Also, the rates so notified are manually incorporated in the Indian Customs EDI System (ICES) by an oflicer designated for this purpose. 7. As a contingency plan for catering to any technical snag, the following procedure shall be followed for ensuring unintemrpted accessibility ofexchange rates at any given time: (i) Nodal Officers have been appointed in the SBI, Board, ICD (Patparganj), Air Cargo Complex (Bengaluru) and DG (Systems) to monitor and manually intervene, where needed. (ii) Nodal Officer at ICD (Patparganj) shall continue to monitor the exchange rates in ICES as per the current practice. If any issue is noticed or in case of any unforeseen exigencies, he shall inform the Nodal Officer in DG (System) to take corrective action. (iii) Where, on a due date when the rates are to be published, there is a failure in electronic transmission from SBI or an incomplete message is received, the last updated rates shall remain in force for the following day and the rates shall be revised the following day by 6:00 p.m. to apply from 00:00 hrs ofthe next day. (iv) Where, on a due date when the rates are to be published, the exchange rates received fiom SBI fail to get integrated on ICES by 6:00 p.m., the message received from SBI shall be discarded and the last updated rates shall remain in force for the following day. The rates shall be revised the following day by 6:00 p.m. to apply from 00:00 hrs ofthe next day. (v) As soon as the situation indicated ar (iii) or (iv) above is encountered, an automated email and SMS alert will be sent to the Nodal Officers at ICD (Patparganj), Air Cargo Complex (Bengaluru), DG (System), SBI and the Board for corrective action. If the issue remains unresolved for consecutive two days, the exchange rates shall be updated 4. lt has now been decided to automate the aforesaid process of issuing exchange rates, beginning with forwarding of exchange rate data by SBI to ICEGATE through message exchange. The exchange rates received from SBI shall be adjusted to the nearest five paise and integrated with ICEs. 4.1 These exchange rates shall be published on ICEGATE website at 6:00 p.m. as per the existing frequency (as stated in Para I and Para l.l above) and shall be accessible for public viewing on ICEGATE website i.e. https://www.icegate.gov.in. 5. These rates, so published online, shallcome into effect from midnight ofthe following day. For instance, exchange rates published on the evening of I lth July 2024 shall come into force from 00:00 hrs of lztn July 2024 and shall remain in force till the next revision. 6. The published exchange rates will be stored and shall remain accessible on ICEGATE for future reference. so as to enable a user to check the exchange rates for a previous date. on the System through manual intervention using the 'admin' interface by the Nodal Oflicer at ICD (Patparganj). 8. The automated system ofascertaining and publishing ofexchange rates, as above, qEe!! nnma inln offent frorn I cf Thrrrsd f rrr tv ) n',4 i.e. 4th Julv 2024 upon which the existing system of notifuing exchange rates through a notification would be dispensed with. A link shall be provided on the CBIC website which will take the user to the ICEGATE website, where the published rates will be available for viewing. 9. Suitable Public Notice may be issued for guidance ofthe stakeholders. Difficulty faced, if any, in implementation may be brought to the notice of the Board. Yours sincerel v, (Kom Punia) Annexure I Australian Dollar 12. Qatari Riyal 1 Bahraini Dinar 13. Saudi Arabian Riyal Canadian Dollar I ,+. Singapore Dollar 4 Chinese Yuan 15. South African Rand 5 Danish Kroner 16. Swedish Kroner 6 EURO t'7 Swiss Franc 7 Hong Kong Dollar t8. Turkish Lira 8 Kuwaiti Dinar UAE Dirham New Zealand Dollar 20 US Dollar 10. Norwegian Kroner 2t. Japanese Yen 11. Pound Sterling 22. Korean Won Note: The list of currencies is subject to revision from time to time, based on requirement of the trade. \,Y b Deputy Secretary List of Cu rrcncics J. 19. I