Circulars/Notifications - Exchange Policy Department  
 F.E. Circular No. 35
October 06, 1996 

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

       
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