At the time of filing the shipping bill under the RoDTEP scheme, following declaration must be filed:
“I/We, in regard to my/our claim under RoDTEP scheme made in this Shipping Bill or Bill of Export, hereby declare that:
I/ We undertake to abide by the provisions, including conditions, restrictions, exclusions and time-limits as provided under RoDTEP scheme, and relevant notifications, regulations, etc., as amended from time to time. Any claim made in this shipping bill or bill of export is not with respect to any duties or taxes or levies which are exempted or remitted or credited under any other mechanism outside RoDTEP.
I/We undertake to preserve and make available relevant documents relating to the exported goods for the purposes of audit in the manner and for the time period prescribed in the Customs Audit Regulations, 2018.”
Q. Whether ledger to be maintained at GSTIN level or IEC level?
The ledger should be maintained at IEC level.
Q. Whether benefit is available even if the consideration is received in INR instead of convertible foreign exchange?
There are no restrictions on realization of amount in INR and the exporters can claim the benefit of the Scheme.
Q. A merchant exporter procuring goods for exports @ 0.1.%& under GST. Can he claim RoDTEP?
Benefit of RoDTEP could be claimed in respect of the goods directly exported from India to outside India in respect of goods manufactured in India.
Q. Whether goods can be exported on payment of GST while claiming the benefit of RoDTEP?
Yes, there are no restrictions of making export of goods on payment of GST simultaneous to claiming benefit of RoDTEP.
Q. What would be the implications on Capital goods imported under EPCG license to neutralise the BCD cost.
The restriction under the Scheme does not cover the capital goods imported under EPCG Scheme. Thus, exporter may continue to claim the benefit of EPCG and RoDTEP simultaneously.
Q. Whether RoDTEP would be credited in exporters’ bank account similar to duty drawback?
RoDTEP would be issued in the form of transferrable e-scrips which will be maintained in an electronic credit ledger by the CBIC and could be used for paying Basic Customs Duty on import of goods or may be transferred electronically to other party. The benefit will not be in the form of direct credit to the bank account.
Q. If an exporter has not been able to mention the option of claiming RoDTEP in shipping bills in respect of the past transactions, what should he do now?
W.e.f. 01.01.2021, it is mandatory for the exporters to indicate in their Shipping Bill whether or not they intend to claim RoDTEP on the export items. It has been categorically specified by the CBIC that, if RODTEPY is not specifically claimed in the Shipping Bill, no RoDTEP would accrue to the exporter.
Q. Can a textile exporter claim ROSCTL along with RoDTEP?
It is pertinent to note that RoSCTL Scheme is eligible for the export of apparels and made-ups only, i.e., the textile goods covered under Chapter 61, 62 & 63 of the HS Tariff Code. Hence, for exports of apparels and Made-ups RoDTEP is not available, if such products are covered under the RoSCTL. For other textile items, RoDTEP may be claimed at the prescribed rates.
Q. Is the benefit of RoDTEP is available on merchanting transactions?
In case of merchanting transaction, the movement of goods commences and concludes outside India. These are covered in the ineligible categories for the benefit of RoDTEP.
Q. Whether RoDTEP benefit can be claimed for the services provided outside India?
The benefit under the scheme can be claimed only in respect of the duties/ taxes/ levies etc. borne on the exported product either used for production of the exported product or for its distribution. Therefore, the present scheme does not allow the benefit in case of service exports outside India.
Q. If a product of an exporter has not been covered in the RoDTEP Scheme, what he should do?
The RoDTEP scheme operates under the budgetary framework wherein the budget would be derived towards this scheme for each financial year and necessary calibrations and revisions shall be made to the scheme benefits, as and when required. As is provided in DGFT Notification No. 19/2021 efforts would be made to review the RoDTEP rates on an annual basis and to notify them well in advance before the beginning of the financial year. Therefore, if any sector or goods are not covered under the scheme or the quantum of benefit is low as compared to the actual cost of taxes incurred, then a timely representation may be filed before the Ministry for consideration at the time of next review.
Q. Whether there is concept of special rate fixation under RoDTEP similar to the special brand rate of drawback?
No, as per the Notification No. 19/2021 Dt. 17.08.2021, it is seen that presently there is no mechanism to fix a brand rate as in the case of drawback based on the actual cost incurred by the exporters on account of various taxes and levies. Further, since the claim processing is automated based on the details submitted in the shipping bill, it looks that presently no option is provided for the exporter to compute the benefit on a brand rate basis of the actual cost.
Q. There are some exporters who have been classified as ‘risky’ and their GST Refunds and Drawback are withheld till the risky tag is removed. What would be impact on the RoDTEP benefit on such exporters.
The Notification No. 19/ 2021 clearly speaks that necessary provisions would be provided for suspension/ withholding of the RoDTEP in case of frauds and misuse, as well as imposition of penalty will be built suitably by the CBIC.
Q. Whether e-commerce exports will be eligible for RoDTEP benefit?
The benefit of the scheme may be eligible provided there is a physical export of the goods from an EDI port. Also, the corresponding shipping/ Airway bill must be in the name of the exporter.
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