Modification of Policy Circular No. 51 (RE-2008) /2004-2009 dated 6th January, 2009 - DGFT - 98 (RE-2008)/2004-2009

Modification of Policy Circular No. 51 (RE-2008) /2004-2009 dated 6th January, 2009 GOVERNMENT OF INDIA MINISTRY OF COMMERCE INDUSTRY DEPARTMENT OF COMMERCE DIRECTORATE GENERAL OF FOREIGN TRADE UDYOG BHAVAN, NEW DELHI-110011 Policy Circular No. 98 (RE-2008)/2004-2009 Dated: 10 August, 2009 To All Licensing Authorities All Customs Authorities Subject: Modification of Policy Circular No. 51 (RE-2008) /2004-2009 dated 6th January, 2009 . Attention is invited to Policy Circular No. 51 (RE-2008)/2004-2009 dated 6th January, 2009 wherein it was clarified that 'the computation of entitlement is to be done on the FOB value of exports inclusive of commissions and discounts, if any'. In this regard, it has been observed that discounts (offered to foreign buyers) do not form part of FOB value. Thus, FOB value on which the entitlement would be computed under Chapter 3 reward schemes would exclude 'discounts'. Hence the phrase 'the computation of entitlement is to be done on the FOB value of exports inclusive of commissions and discounts, if any.' in Policy Circular No. 51(RE-2008)/2004-2009 dated 6th January, 2009 is amended to read as 'the computation of entitlement is to be done on the FOB value of exports inclusive of foreign agency commission'. This issues with the approval of the DGFT. Sd/ (A K Singh) Joint Director General of Foreign Trade (Issued from File No: 01/91/180/1694/AM09/PC-3)