GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
UDYOG BHAVAN, NEW DELHI-110011
Policy Circular No. 51 (RE-2008) / 2004-2009
Dated: 6th January, 2009
To
All Licensing Authorities
All Customs Authorities
Subject: 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 commissions
and discounts, if any.
This issues with the approval of the DGFT.
Sd/-
(Satyan Sharda)
Joint Director General of Foreign Trade
(Issued from File No: 01/91/180/1694/AM09/PC-3)