Clarification regarding Duty Drawback allowed in cases of short realization of export proceeds due to bank charges deducted by foreign banks, issued by the C.B.I.T.& C., New Delhi, vide Circular No. 33/2019 - Customs dated 19th September, 2019

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.... G. S. T. BHAWAN, 41/A, SASSOON ROAD, PUNE-411001 F. No. VIII/Cus/Tech/PN/48-30/2018 Dated: 26.09.2019 PUBLIC NOTICE NO. 15/2019 Subject - Clarification regarding Duty Drawback allowed in cases of short realization of export proceeds due to bank charges deducted by foreign banks, issued by the C.B.I.T.& C., New Delhi, vide Circular No. 33/2019 - Customs dated 19th September, 2019 - ....

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....the Board. In this regard, the Reserve Bank of India has clarified that such deductions are enabled under Notification No. FEMA 23(R)2015-RB, dealing with Foreign Exchange Management (Export of Goods and Services) Regulations, 2015. In respect of various export promotion schemes, para 2.52 of the FTP 2015-20 also states that free foreign exchange remitted by buyer after deduction of bank service c....

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....f foreign bank charges is allowed within this overall limit of 12.5 % Of the F.O.B. value. From the average rates of agency commission and foreign bank charges in respect of export shipments, it is seen that these deductions fall within the overall limit of 12,5 % of F.O.B. value allowed by the Board. Agency commission and foreign bank charges, separately or jointly, exceeding this limit should be....