(i) Authorised dealers may allow payment of commission, either by remittance or by deduction from invoice value, on application submitted by the exporter. The application,by letter, should give particulars such as Importer-Exporter code number, customs/shipping bill number and date, name of commodity, name and address of buyer/agent and export value and should be supported by an attested copy of invoice and documentary evidence in support of the amount to be remitted. The remittance may be allowed subject to the following conditions:

(a) Amount of commission has been declared on GR/PP/SDF/SOFTEX form and accepted by Custom authorities or Department of Electronics, Government of India as the case may be. In cases where the commission has not been declared on GR/PP/SOFTEX form, remittance thereof may be allowed after satisfying about the reasons adduced by the exporter for not declaring commission on Export Declaration Form, provided a valid agreement/written understanding between the exporter and/or agent/beneficiary for payment of commission subsists.

(b) Rate of commission does not exceed 12.5% of invoice value.

(c) Commission sought to be remitted is not on export of a canalised item, project exports, or exports financed under lines of credit extended by Government of India or Exim Bank, or exports made by Indian partners towards equity participation in an overseas joint venture/wholly owned subsidiary.

(d) The relative shipment has already been made.
(ii) Authorised dealers may allow payment of commission by Indian exporters, in respect of their exports covered under counter trade arrangement through Escrow Accounts designated in U.S. dollar, subject to the following conditions;-

(a) The payment of commission satisfies the conditions as at (a) to (d) stipulated in paragraph 6E.2(i) above.

(b) The commission is not payable to Escrow Account holders themselves.

(c) The commission should not be allowed by deduction from the invoice value.