Clarification regarding duty drawback allowed in cases of short realisation of export proceeds due to bank charges deducted by foreign banks
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....incipal Chief Commissioners / Principal Directors General, Chief Commissioners / Directors General, all under CBIC Madam/Sir, Subject: Clarification regarding duty drawback allowed in cases of short realisation of export proceeds due to bank charges deducted by foreign banks. Representations have been received from Export Promotion Councils, Trade Bodies, and individual exporters regarding sh....
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....ons 2015. In respect of various export promotion schemes, para 2.52 of FTP 2015-20 also states that free foreign exchange remitted by buyer after deduction of bank service charges are taken as export realisation under export promotion schemes of FTP. Earlier also, in respect of agency commission paid to agents abroad for securing export contracts, Board vide Circular No. 64/2003- Customs dated 21.....
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....esaid overall limit of 12.5% of FoB value allowed by the Board. Agency commission and foreign bank charges, separately or jointly, exceeding this limit should be deducted from the FoB value for granting duty drawback. 4. Field formations may consider on merits exporter's requests for regularising such short realisation on account of foreign bank charges based on documentary evidence such as expor....