'No restriction on invoicing of export contracts in Indian rupees'

Can we raise an export invoice in rupees and get payment in rupees? Is it allowed under Central Excise laws? Can we get drawback when payment is received in rupees?
As per Para A (iv) Part-I of RBI Master Circular no. 14/2015-16 dated July 1, 2014, “there is no restriction on invoicing of export contracts in Indian Rupees”. Further, in terms of Para 2.52 (a) of the Foreign Trade Policy (2015-2020), export proceeds against specific exports may also be realised in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of the Asian Clearing Union (ACU) or Nepal or Bhutan. Contracts (for which payments are received through ACU) will be denominated in ACU dollars. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and invoices can be denominated in Indian rupees against EXIM Bank/Government of India line of credit.

Free foreign exchange remitted by the buyer to his non-resident bank (after deducting bank service charges) on account of this transaction would be taken as export realisation under export promotion schemes of FTP. As per Para 2.53 of FTP, ‘Notwithstanding the provisions contained in para 2.52 (a) above, export proceeds realised in Indian Rupees against exports to Iran are permitted to avail exports benefits/incentives under the Foreign Trade Policy (2015-20), at par with export proceeds realised in freely convertible currency.’ There is no bar on realisation of export proceeds in conformity with the above provisions under the excise laws or for payment of drawback.

 
Can you give us the gist of Reserve Bank’s instructions for making advance payment for imports?

You can send advance payment for imports of up to $200,000, as per Para C.1.1 of RBI Master Circular no. 13/2015-16 dated July 1, 2014. For advance payments beyond that limit, you must get a bank guarantee (BG) or a standby letter of credit (SLB) to ensure that the buyer will supply goods. For customers with a good track record, banks can allow advance payments of up to $500,000 without a BG or SLB. Public sector companies or undertakings run by government, who cannot get BG or SLB, must get a waiver from the finance ministry for remittances exceeding $100,000. When you make advance payments, you must get the imports within six months, except for capital goods for which the time limit is three years.

 
Who are we required to approach for claiming refund of four per cent SAD paid on imports?
The notification 102/2007-Cus dated September 14, 2007, requires the importer to file a claim for refund of four per cent additional duty of customs paid on the imported goods with the jurisdictional customs officer before the expiry of one year from the date of payment of the said additional duty of customs. CBECC Circular 6/2008-Cus dated April 28, 2008 says that all refund applications under the aforesaid notification will be received by the concerned field formations in their Centralised Refund Section.