CBIC issues advisory on E-Scrip to avail Export Incentive Schemes i.e. RoSCTL, RoDTEP

The CBIC has developed an Escrip module to provide a digital service to exporters for availing benefits under various incentive schemes like RoDTEP and RoSCTL. In respect thereto, vide Advisory No. 06/2021 dated 01 October 2021, it has been clarified that the above-mentioned schemes provide rebate of Central, State and Local duties/taxes/ levies which are not refunded under any other duty remission schemes. The procedure prescribed for availing the Escrips has been provided hereunder:

• Exporter shall make a claim for RoSCTL/RoDTEP in the shipping bill by making a declaration;
• Once EGM is filed, claim will be processed by Customs;
• Once processed, a scroll with all individual Shipping Bills for admissible amount would be generated and made available in the users account at ICEGATE;
• Accordingly, user can create an e-scrip account under E-scrip tab;
• The IECs who are registered on ICEGATE with a DSC, can duly generate the E-scrip for relevant shipping bills.

The CBIC has further made certain clarifications relating to the Export Schemes, as provided hereunder:

RoSCTL Scheme

It has been clarified that certain textiles and apparel articles classifiable under Chapters 61, 62 and 63, RoSCTL would continue to be given beyond 31 December 2020 and till 31 December 2024 instead of RoDTEP. Accordingly, to enable the RoSCTL scheme, the claim shall be made by the exporter in the EDI shipping bill by using specific scheme codes for drawback exports as mentioned hereunder:

It has been further clarified that the calculation for RoSCTL for prospective cases shall be based on value equal to declared export FOB value of the said goods or up to 1.5 times the market price of the said goods, whichever is less. Further, since RoSCTL scheme was not applicable w.e.f. 01 January 2021 there was no provision in System to avail RoSCTL, instead RoDTEP claims were captured at the item level. Therefore, for retrospective cases, the RoSCTL amount would be calculated on the basis of relevant tariff items (as per RoSCTL schedules) under Chapters 61, 62 and 63 for cases only where both RoDTEP and Drawback were claimed at item level. In cases where RoDTEP and Drawback had not been claimed, normal calculation for RoSCTL shall be followed.

The CBIC further clarified that RoSCTL claims would be applicable to shipping bills filed on or after 01 January 2021. If a shipping bill has been filed prior to 01 January 2021 but processed after 01 January 2021, it will not be eligible for RoSCTL benefit (as per new scheme). Hence, the date of filing of Shipping Bill and not date of LEO is relevant. For the residual RoSCTL claims of the period prior to 01 January 2021, these would continue be transmitted for issuance of scrips, as done till now.

RoDTEP Scheme

Implementation of RoDTEP scheme in Custom Automated System has been developed. However, till date, only capturing of RoDTEP claims in the shipping bill was enabled whereas the rates and codes were not notified even if the scheme was operationalized w.e.f. 01 January 2021.

Accordingly, it has been clarified that for shipping bills filed between 01 January 2021 to 01 October 2021, the benefits will be calculated on value equal to declared export FOB value of the said goods or up to 1.5 times the market price of the said goods, whichever is less. Further, for the shipping bills filed on or after 01 October 2021, the benefit will be calculated in the shipping bill with the actual ad valorem rates but not exceeding per unit value caps if any, on value equal to declared export FOB value of the said goods or up to 1.5 times the market price of the said goods, whichever is less.

Disclaimer:

The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.