All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
DUTY
DRAW BACK AGAINST BCA/BANK CERTIFICATE
Attention
of Authorized Dealers is invited to the F.E.
Circular No.64 dated the 25th August, 1993
on the above subject.
2.
It has come to our notice that some exporters obtain the
BCA (Annexure A) from
the Authorized Dealers before remittance of the commission
to foreign agents / buyers. Consequently, the Authorized
Dealers do not show the commission amount as deduction from
the bill amount and the exporters are able to get duty draw
back on commission amount also. The exporters remit the
commission amount subsequently.
3.
Authorized Dealers are, therefore, advised that while issuing
certificates in Annexure
'A' enabling the exporters to claim duty draw back,
they should invariably show the amount of commission paid
or payable, as a deduction from the bill amount, notwithstanding
the fact whether the amount of commission has been remitted
or not at the time of issuance of the relative certificate.
Remittance of commission to a buyer or agent abroad or its
credit to a Foreign Currency account, as permitted vide
para
29 (iii), Chapter
XII of the Foreign Exchange Manual should not be allowed
if the same has not been shown in the BCA as a deduction.
4.
Please bring the above to the notice of your constituents
