Remittance of foreign exchange to the agent abroad before realization of export proceeds

[satbir singhwahi]

can foriegn commission to agent abroad be remitted before realisation of export proceeds,if goods are exported under letter of credit and acceptance has been received for the documents sent through bank.where to get CDX form (paragraph II H.4(1)- statement of commission on export.

[Surender Gupta]

Para c26 of the master circular dated July 1, 2009 stipulated the condition of shipment before making payment to agent in abroad (agency commission). There is no condition that foreign exchange must be realized before remitting the payment for agency commission.

AI Summary

Foreign commission remittance may be made after shipment without awaiting realization of export proceeds under accepted export documents. Payment of agency commission in foreign exchange is permissible once the shipment condition is met; there is no requirement that export proceeds be realised before remitting commission to an agent abroad. This position applies where goods are exported under a letter of credit and export documents sent through the bank have been accepted. The reply does not provide details on obtaining the CDX form for reporting the statement of commission on export.