Limit for payment of agency commission on exports - reg

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....ontracts and such agents are paid agency commission as a percentage of the f.o.b. value by the Indian exporters. For various Export Promotion Schemes including Duty Drawback and DEPB, the f.o.b. value is reckoned for granting the export benefits. In terms of the Policy Circular No.55(RE-98) 98-99, dated 10.12.98 of the Director General of Foreign Trade, it has been prescribed that the foreign agen....

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....t of 12.5% of the f.o.b. value regarding payment of agency commission is superseded. 4. The issue has been examined in the Board. It is observed that RBI has not revised its earlier instructions as regards the limit of payment of agency commission. Therefore, it is clarified that the field formations may continue to permit export benefits on f.o.b. value without deducting agency commission if s....