SME Chatroom: Duty drawback permitted on FOB value without bank charges

Agency commission and foreign bank charges, separately or jointly, exceeding this limit should be deducted from the FOB value for granting duty drawback, the CBIC says

Q. For our exports we are paid through inward remittances, where foreign banks deduct their charges of euro 20-50 many times. We received notice from the Customs asking us to refund the drawback received by us in 2014-15 alleging non-realisation of export proceeds. When we submitted all bank realisation certificates to them, they prepared a list of 17 invoices where we have a shortfall in realisation of euro 35-50 due to foreign bank charges. Are we  liable to pay this pro-rata drawback back to the government with 18 per cent interest?

CBIC Circular no.33/2019-Cus dated September 19, 2019 clarifies that