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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..... C. No. VIII-48(13)Tech/46 47/Ldh/2017 Dated: 30.10.2019 Public Notice No. 25/2019 Subject: Clarification regarding duty drawback allowed in cases of short- realisation of export proceeds due to bank charges deducted by foreign banks - reg. Kind attention of the members of trade (importers/exporters/Customs brokers) and all perso .....

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..... matter has been examined by the Board. In this regard, the Reserve Bank of India 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 de .....

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..... has been allowed, such deduction on account of foreign bank charges is allowed within this overall limit of 12.5% of the FOB value. However, agency commission and foreign bank charges, separately or jointly, exceeding this limit should be deducted from the FOB value for granting duty drawback. 5. Accordingly, the field formations may consider on merits exporter's requests for reg .....

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