Robin circulates around first-class capital (7)
I believe the answer is:
nairobi
'capital' is the definition.
(Nairobi is an example)
'robin circulates around first-class' is the wordplay.
'circulates' is an anagram indicator.
'around' indicates putting letters inside.
'first class' becomes 'ai' (A1 - top quality).
'robin' anagrammed gives 'nrobi'.
'nrobi' going around 'ai' is 'NAIROBI'.
(Other definitions for nairobi that I've seen before include "Kenyan city" , "Flat round object" , "Robinia strangely found in Kenya" , "East African capital" , "African city" .)