Export of Goods to Russia against Repayment of State Credits in Rupees – Payment of Agency Commission - FEMA - 071

Export of Goods to Russia against Repayment of State Credits in Rupees - Payment of Agency Commission RESERVE BANK OF INDIA FOREIGN EXCHANGE DEPARTMENT CENTRAL OFFICE MUMBAI - 400 001 RBI/ 2004/64 A.P. (DIR Series) Circular No.71 February 20, 2004 To All Authorised Dealers in Foreign Exchange Madam / Sirs, Export of Goods to Russia against Repayment of State Credits in Rupees - Payment of Agency Commission Attention of Authorised Dealers is invited to A.D (MA Series) Circular No.11dated May 16, 2000 forwarding therewith, inter-alia, a copy of Notification No.GSR 381(E) dated May 3, 2000 regarding Foreign Exchange Management (Current Account Transactions) Rules, 2000. Item 6 of Schedule I thereto prohibits payment of agency commission on exports under Rupee State Credit Route. 2. It has now been decided to permit payment of commission in free foreign exchange for exports of tea and tobacco to Russia against repayment of State Credits upto 10 per cent of the invoice value. Accordingly, Authorised Dealers may permit payment of commission in free foreign exchange upto 10 per cent of invoice value for export of tea and tobacco only. 3. Necessary amendments to the Foreign Exchange Management (Current Account Transactions) Rules, 2000 have since been notified by the Government in the Official Gazette, vide Notification No.G.S.R.397 (E) dated May 1, 2003 (copy enclosed). 4. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned. 5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, Grace Koshie Chief General Manager Encl : As above