CIR. NO. 24/2003, DT. 14/01/2004
- Document type
- Circular
- Reference no.
- G
- Dated
Inclusion of commission in the FOB value for calculation of DEPB entitlement
Inclusion of commission in the FOB value for calculation of DEPB entitlement.
Representations have been received seeking clarification on the maximum permissible limit for payment of agency commission on exports against DEPB licences. Attention is drawn to this office policy circular No.55 (RE-98) dated 10th December, 1998 to be read with custom circular No.64/2003-Cus. dated 21st July, 2003 and Clause 6E-2 of the Exchange Control Manual of RBI whereby it was specifically mentioned that the rate of commission should not exceed 12.5% of invoice value/FOB value. The matter was examined and it was decided to clarify that the agency commission would be allowed for the DEPB benefit if such commission is upto the limit of 12.5% of FOB value. Agency commission exceeding this limit should be deducted from the FOB value for granting benefit under DEPB Scheme.
This issues with the approval of DGFT.
(Tapan Mazumder)
Deputy Director General of Foreign Trade