SEZs – How to calculate NFE?
References have been received in the Commerce Department on the currency in which NFE is to be calculated. The Department has examined the issue and clarifies that NFE is to be calculated in rupee terms only. In case a unit is NFE negative and claims that it is due to foreign exchange fluctuation, the Approval Committee may consider such cases provided that the unit gets the computations certified by the Authorised Bank, on a case to case, basis.
Department of Commerce Instruction No. 41 Dated: November 13, 2009