A.P. (DIR Series) (2003-04) Circular No. 71, dated 20-2-2004
Export of Goods to Russia against
Repayment of State Credits in Rupees - Payment of Agency Commission
Attention of Authorised Dealers is invited to A.D.
(MA Series) Circular No. 11 dated May 16, 2000 forwarding therewith, inter
alia, a copy of Notification No. GSR 381(E) dated May 3, 2000 regarding
Foreign Exchange Management (Current Account Transactions) Rules, 2000. Item 6
of Schedule I thereto prohibits payment of agency commission on exports under
Rupee State Credit Route.
2. It has now been decided to
permit payment of commission in free foreign exchange for exports of tea and
tobacco to Russia against repayment of State Credits upto 10 per cent of the
invoice value. Accordingly, Authorised Dealers may permit payment of commission
in free foreign exchange upto 10 per cent of invoice value for export of tea
and tobacco only.
3. Necessary amendments to
the Foreign Exchange Management (Current Account Transactions) Rules, 2000 have
since been notified by the Government in the Official Gazette, vide
Notification No. G.S.R. 397(E) dated May 1, 2003.
4. Authorised Dealers may
bring the contents of this circular to the notice of their constituents
concerned.
5. The directions contained
in this circular have been issued under sections 10(4) and 11(1) of the Foreign
Exchange Management Act, 1999 (42 of 1999).