POLICY CIR NO. 51/2008, DT. 06/01/2009

FOB VALUE OF EXPORT FOR SCHEMES UNDER CHAPTER 3 OF FTP, CLARIFICATION REGARDING COMMISSION

Attention is invited to various schemes under Chapter 3 of FTP. In this regard, references have been received from the Trade and Industry on the issue as to whether commission or discounts have to be included or excluded from the FOB value of exports in the value taken for calculation of the entitlement.

The matter has been examined in detail, and it is clarified that under the various incentive schemes under Chapter 3 of the FTP 2004-09, the computation of entitlement is to be done on the FOB value of exports inclusive of foreign agency commission. [OLD- the computation of entitlement is to be done on the FOB value of exports inclusive of commissions and discounts, if any. ]

(In above Policy Circular the words "the computation of entitlement is to be done on the FOB value of exports inclusive of foreign agency commission" has been amended vide POLICY CIR NO. 98/2008, DT. 10/08/2009)

This issues with the approval of the DGFT.

Sd/-

(Satyan Sharda)
Joint Director General of Foreign Trade

Presented by eximkey.com