8B.11
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Remuneration to Agents Abroad appointed by Indian Airline/Shipping Companies
Indian airline/shipping companies are permitted to appoint agents at various overseas ports for looking after their interests and make payment of remuneration/commission and other charges actually incurred out of their freight/passage collections or out of balances held in their foreign currency accounts maintained abroad with the approval of Reserve Bank [cf. paragraph 12.1] provided the commission payable conform to the international trade practices/IATA regulations subject to a maximum of 5% of the freight collections abroad in the case of shipping companies and 15% of the passage/freight collections abroad in the case of airline companies made by the foreign agents on behalf of Indian principals. In case the freight/passage collections or balances in foreign currency at a particular place are insufficient, applications for remittance may be made by Indian airline/shipping companies to their bankers (authorised dealers), supported by documentary evidence. The authorised dealer may, on application, and subject to verification of the terms of the agency agreements entered into between the Indian airline/shipping company and its overseas agent and documentary evidence such as debit notes, details of passage fare/freight collected etc. allow the remittance of remuneration/commission to the overseas agents of Indian airline/shipping companies within the above ceilings. Copies of the documentary evidence verified should be submitted to Reserve Bank alongwith the relative form A2 while reporting the transaction in the R Returns for the relevant period.