Every rupee of duty you pay at an Indian port starts with one number: the customs exchange rate. Your supplier bills you in dollars, euros or yen, but Indian Customs values goods in rupees. So somebody has to decide what a dollar is worth on the day your shipment is assessed. That somebody is CBIC, and the figure it picks is rarely the one you see on Google.

Get it wrong on a bill of entry or shipping bill and the assessable value shifts, the duty shifts, and sometimes your incentive claim shifts with it. If you’re still getting comfortable with the paperwork, our guide to the export import documentation procedure shows the documents where this rate actually appears.

What Is the Customs Exchange Rate?

It’s the fixed rate at which the Central Board of Indirect Taxes and Customs (CBIC) converts foreign currency into Indian rupees for valuing imported and exported goods. CBIC publishes it through notifications under Section 14 of the Customs Act, 1962, and it normally changes twice a month, on the first and third Thursday.

Two things catch new traders off guard. It isn’t the live market rate, and there isn’t just one of it. There are two.

Export Exchange Rate vs Import Exchange Rate

CBIC notifies one rate for imported goods and a slightly lower one for export goods. For the US dollar, the gap is usually a rupee or two.

Here’s how that plays out. Say a notification fixes the dollar at ₹87.20 for imports and ₹85.50 for exports (illustrative figures only, so check the current notification before you file). An importer with a $10,000 CIF invoice gets an assessable value of ₹8,72,000. An exporter shipping $10,000 worth of cotton yarn declares an FOB value of ₹8,55,000 at the export exchange rate. Same dollar amount, ₹17,000 apart.

Why the gap? The import figure roughly mirrors what a bank charges to sell you dollars, while the export figure sits closer to what a bank pays to buy them.

Which Currencies Are Covered?

Each notification has two schedules. Schedule I covers major currencies like the US dollar, euro, pound sterling, UAE dirham and Singapore dollar, quoted per single unit. Schedule II covers currencies with small unit values, such as the Japanese yen and Korean won, quoted per 100 units.

Customs Exchange Rate Export Rules: Which Date Applies?

Under Section 14, imports use the rate in force on the date the bill of entry is filed. Exports use the rate in force on the date the shipping bill is filed.

Picture this. You file a shipping bill on Wednesday. On Thursday a fresh notification comes out and the dollar moves up 60 paise. Your shipment still goes with Wednesday’s rate. That’s the customs exchange rate export rule in practice, and it works the same way whether the market moved for you or against you.

A few rules worth pinning above your desk:

  • Imports: the rate on the date your bill of entry is filed decides the assessable value.
  • Exports: the rate on the date your shipping bill is filed decides the FOB value in rupees.
  • Invoice date doesn’t count: whatever date your buyer’s contract mentions, customs valuation follows the filing date.
  • Bank realisation is separate: the rupees you actually receive depend on your bank’s rate on the day of realisation, not the notified one.
  • Mid-month changes happen: CBIC can issue an extra notification when a currency swings sharply, so don’t assume a rate holds for the full fortnight.
  • Yen and won need dividing: Schedule II rates are per 100 units, so divide by 100 before you calculate anything.

ICEGATE fills in the figure at filing, so CHAs usually get it right. The trouble starts earlier, when you’re doing the maths yourself for a costing sheet or quotation. In that case, work out which notification will likely be in force on your filing date and apply the customs exchange rate export figure from it, not today’s market price.

Why Exporters Should Care Even With Zero Duty

Most Indian exports carry no export duty, so plenty of exporters ignore this rate altogether. That’s a costly habit. Your FOB value in rupees, worked out at the export exchange rate, is the base for duty drawback and RoDTEP claims. A lower rupee value means a smaller benefit, shipment after shipment. If you claim incentives, it’s worth understanding how RoDTEP scheme rates are applied to FOB value.

Where to Check the Exchange Rate CBIC Notifies Every Fortnight

You have two official sources. The first is the CBIC website (cbic.gov.in), where the rates appear as Customs (N.T.) notifications. The second is ICEGATE, which shows the rates currently in force.

When you open the latest notification, skip straight to the “with effect from” date. That’s the date that matters for your filing, not the issue date printed at the top. Plenty of traders have pulled the exchange rate CBIC released that morning, only to find it took effect the next day.

One habit we’ve seen work well for small exporters: save the PDF of every notification in a shared folder, with the effective date in the file name. When an officer or auditor questions a value six months later, you’ll have the exact exchange rate CBIC applied on hand in seconds.

Is There a DGFT Customs Exchange Rate?

No. DGFT handles IEC, licences and export promotion, so it feels like the natural home for currency rates. It isn’t.

People searching for a dgft customs exchange rate almost always need the CBIC notification. DGFT doesn’t fix any rate for customs valuation. If a website or consultant quotes a dgft customs exchange rate, ask them which CBIC notification it came from. If they can’t answer, don’t use the number.

Mistakes That Cost Traders Money

The most common one we see is pricing export quotes on the Google rate. It’s usually higher than the notified export figure, so your planned margin quietly shrinks once the shipping bill is filed. The second is booking the notified rate as your realisation rate. They rarely match, and the difference belongs in forex gain or loss, not product cost.

Both mistakes come from treating trade numbers casually, and they get more expensive as your volumes grow. If you’re building tighter processes into your export business, these Smart Trade Solutions for global business growth are a useful next read.

Final Thoughts

The customs exchange rate looks like a small detail on a long document. But it decides your duty, your FOB value and your incentive claims, and it changes every fortnight whether you’re watching or not.

FAQs

Q1. How often does CBIC change the notified rates? Usually twice a month, on the first and third Thursday. CBIC can also issue an extra notification mid-fortnight when a currency moves sharply.

Q2. Why is the rate for imports higher than the rate for exports? The import figure follows the bank’s selling rate for foreign currency, while the export figure follows its buying rate. That keeps valuation close to real market conditions.

Q3. Which date’s rate applies to my shipping bill? The rate in force on the date you file the shipping bill. Your invoice date, contract date or payment date has no effect on customs valuation.

Q4. Where can I find the latest notification? Check the Customs (N.T.) notifications on cbic.gov.in or the rates shown on ICEGATE. Always confirm the “with effect from” date before using any figure.

Q5. Does the notified rate decide how many rupees I receive from my buyer? No. Your bank converts the payment at its own rate on the realisation date. Any difference from the shipping bill value goes into your forex gain or loss.