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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....Cus.TFC.PF-I Date: 26.09.2019 PUBLIC NOTICE NO. 31/2019-cus Subject:- Clarification regarding duty drawback allowed in cases of short realisation of export proceeds due to bank charges deducted by foreign banks - reg. Attention of all the Importers, Exporters, Customs Brokers, Steamer Agents, Custodians/ Customs Cargo Service Providers, Trade Associations / Chamber of Commerce, Members of th....

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....such short realisation. 3. The matter has been examined. In this regard, RBI 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 FTP 2015-20 also states that free foreign exchange remitted by buyer after deductio....

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....n on account of foreign bank charges is allowed within this overall limit of 12.5% of the FOB 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 aforesaid overall limit of 12.5% of FOB value allowed by the Board. Agency commission and foreign bank charges, separately or jointly, exceeding this....