Procedure for Duty Credit for Goods Exported under RoDTEP – Customs
Notification Notified
[Notification No. 76/2021-Customs (N.T.)
dated 23 September 2021]
·
List of 14 Segments not eligible for
credits of special goods including restricted or duty paid goods for Duty
Credit, goods “taken into use” after manufacture excluded, (term not defined,
testing or software loading may be covered in term)
·
Proceeds to be realized within period
allowed in FEMA
·
Only EDI station export recognized,
Land Customs without EDI excluded
·
Customs Commissioners has powers to
cancel scrip for violation of law, recovery of duty credit plus to be initiated
under Sec.142 of CA, 1962
· Both
transferor and transferee liable for suspension of further credit in default
cases
· Cancellation of duty credit
· Recovery of amount of duty credit
· Recovery of amount of duty credit where
export proceeds are not realised
G.S.R.
……. (E).- In exercise of the powers conferred by sub-section (1) of section 51B
of the Customs Act, 1962 (52 of 1962) (hereinafter referred to as “the said Act”),
the Central Government, hereby notifies the manner to issue duty credit for goods exported under the Scheme
for Remission of Duties and Taxes on Exported Products (hereinafter referred
to as the “Scheme”), subject to such conditions and restrictions as specified herein,
in accordance with paragraph 4.01(e) of the Foreign Trade Policy (hereinafter referred
to as “FTP”).
2. Such duty credit shall
be subject to the following conditions, namely:-
(1)
that the duty credit is issued -
(a) in lieu of remission
of any duty or tax or levy, chargeable on any material used in the manufacture or
processing of goods or for carrying out any operation on such goods in India that
are exported, where such duty or tax or levy is not exempted, remitted or credited
under any other Scheme;
(b) against export of
goods notified in Appendix 4R (hereinafter referred to as the “Appendix”) of the
FTP, at the respective rate and cap notified under the said Appendix:
Provided
that the value of the said goods for calculation of duty credit to be allowed under
the Scheme shall be the declared export FOB value of the said goods or up to 1.5
times the market price of the said goods, whichever is less;
(c) against claim of duty
credit under the Scheme made by an exporter by providing the appropriate declaration
at the item level in the shipping bill or bill of export in the customs automated
system;
(d) against the shipping
bill or bill of export, presented under section 50 of the said Act on or after the
1st day of January, 2021, and
where the order permitting clearance and loading of goods for exportation under
section 51 of the said Act has been made;
(e) after the claim is
allowed by Customs upon necessary checks, including on the basis of risk evaluation
through appropriate selection criteria, and after filing of export manifest or export
report;
(f) in accordance with
any rules or regulations issued in relation to duty credit, e-scrip or electronic
duty credit ledger;
(2)
that such duty credit shall be used for payment of the duty of customs leviable
under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) on goods when
imported into India;
(3)
that the export categories or sectors listed in Table-1 annexed hereto shall not
be eligible for duty credit under the Scheme;
(4)
that the duty credit allowed under the Scheme against export of goods notified in
the Appendix shall be subject to realization of sale proceeds in respect of such
goods in India within the period allowed under the Foreign Exchange Management Act,
1999 (42 of 1999); failing which such duty credit shall be deemed to be ineligible;
(5)
that the imports and exports are undertaken through the seaports, airports or through
the inland container depots or through the land customs stations which allow the
bill of entry and shipping bill or bill of export to be presented and processed
electronically on the customs automated system;
(6)
that the exporter has realised the sale proceeds against export of goods made earlier
by the said exporter where the period allowed for realization, including any extension
of the said period by the Reserve Bank of India, has expired:
Provided
that
duty credit shall be issued by Customs in excess of the ineligible amount of duty
credit pertaining to the unrealised portion of sale proceeds against export of goods
made earlier:
Provided
further that if the Principal Commissioner of Customs
or Commissioner of Customs has reason to believe, on the basis of risk evaluation
or on the basis of enquiry, that the claim of duty credit made by an exporter on
export goods may not be bona fide, he may direct, for reasons to be recorded in
writing, to allow duty credit after realisation of sale proceeds of such exports;
(7)
that duty credit under the Scheme for exports made to Nepal, Bhutan and Myanmar
shall be allowed only upon realization of sale proceeds against irrevocable letters
of credit in freely convertible currency established by importers in Nepal, Bhutan
and Myanmar in favour of Indian exporters for the value of such goods.
3. Cancellation of duty credit.
- (1) Where a person contravenes any of the provisions of the Act or any other law
for the time being in force or the rules or regulations made thereunder in relation
to exports to which the duty credit relates, or in relation to the e-scrip, the
Principal Commissioner of Customs or Commissioner of Customs having jurisdiction
over the customs station of registration of the e-scrip may, after enquiry, pass
an order to cancel the said duty credit or e-scrip.
(2)
Where the e-scrip is so cancelled, the duty credit amount in the said e-scrip shall
be deemed never to have been allowed and the proper officer of Customs shall proceed
to recover the duty credit amount used in such e-scrip or transferred from such
e-scrip.
(3)
The proper officer of Customs may, without prejudice to any other action that may
be taken under this Act or any other law for the time being in force, suspend the
operation of the said e-scrip or the electronic duty credit ledger of such exporter
or any duty credit transferred from such e-scrip, during pendency of the enquiry
under sub-clause (1).
4. Recovery of amount of duty credit.
- (1) Where an amount of duty credit has, for any reason, been allowed in excess
of what the exporter is entitled to, the exporter shall repay the amount so allowed
in excess, himself or on demand by the proper officer, along with interest, at the
rate as fixed under section 28AA for the purposes of that section, on that portion
of duty credit allowed in excess, which has been used or transferred, and where
the exporter fails to repay the amount along with interest, as applicable, it shall
be recovered in the manner provided in section 142 of the said Act.
(2)
The duty credit amount that an exporter is so required to repay under sub-clause
(1) shall be deemed never to have been allowed, and if the exporter fails to repay
the said amount within a period of fifteen days along with interest so demanded,
then the proper officer of Customs may, without prejudice to any action against
the exporter, proceed for recovery of the said duty credit amount from the transferee
in the manner as provided in section 142 of the said Act.
5. Recovery of amount of duty credit where
export proceeds are not realised. - (1) Where an amount of duty credit has
been allowed to an exporter but the sale proceeds in respect of such export goods
have not been realized by the exporter in India within the period allowed under
the Foreign Exchange Management Act, 1999 (42 of 1999), the exporter shall, himself
or on demand by the proper officer, repay the amount of duty credit, along with
interest, at the rate as fixed under section 28AA of the said act for the purposes
of that section, within fifteen days of expiry of the said period.
(2)
In case any extension of the said period for realisation of sale proceeds has been
given by the Reserve Bank of India and the exporter produces evidence of such extension
to the proper officer, and if the said sale proceeds are not realised in such extended
period, the exporter shall repay the said amount of duty credit along with the said
interest, within fifteen days of expiry of the said period.
(3)
If a part of the sale proceeds has been realized, the amount of duty credit to be
recovered shall be the amount equal to that portion of the amount of duty credit
allowed which bears the same proportion as the portion of the sale proceeds not
realized bears to the total amount of sale proceeds.
(4)
Where the exporter fails to repay the duty credit amount within the said period
of fifteen days, the said duty credit shall be deemed never to have been allowed
and it shall be recovered, along with the said interest, in the manner as provided
in section 142 of the said Act.
(5)
The proper officer of Customs may, without prejudice to any action against the exporter,
proceed for recovery of said duty credit amount from the transferee in the manner
as provided in section 142 of the said Act.
6. During the pendency of
any recovery, as provided in clauses 4 and 5, no further duty credit, on any subsequent
exports, shall be allowed to such exporter till the time such recovery is made and
any unutilised duty credit with the exporter or the transferee shall be suspended
pending such recovery.
Explanation
– For the purposes of this notification -
(a) “Claim” means a claim
of duty credit under the Scheme made by an exporter in the shipping bill or bill
of export by providing the appropriate declaration at the item level in the said
shipping bill or bill of export in the customs automated system;
(b) “Duty credit” means
the amount of credit of duty allowed by Customs against a claim under the Scheme;
(c) “Electronic duty credit
ledger” means the ledger in the customs automated system relating to a person who
is the recipient of duty credit or to person to whom the duty credit is transferred;
(d) “E-scrip” means the
scrip, created in the ledger for duty credit, as mentioned in Explanation 1 of section
28AAA of the said Act;
(e) “Export manifest”
or “export report” means the reference to the terms used in Section 41 of the said
Act;
(f) “Foreign Trade Policy”
means the Foreign Trade Policy published by the Government of India in the Ministry
of Commerce and Industry and as amended from time to time;
(g) “Proper officer” means
Deputy Commissioner or Assistant Commissioner of Customs.
|
TABLE-1 |
|
|
Sl.No. |
Export
categories or sectors ineligible for duty credit |
|
(1) |
(2) |
|
1. |
Goods
which are restricted or prohibited for export under Schedule-2 of Export Policy
in ITC-HS |
|
2. |
Export
of imported goods covered under paragraph 2.46 of Foreign Trade Policy |
|
3. |
Exports
through trans-shipment, meaning thereby exports that are originating in third
country but trans-shipped through India |
|
4. |
Goods
subject to minimum export price or export duty |
|
5. |
Deemed
exports under Foreign Trade Policy |
|
6. |
Goods
manufactured or exported by any of the units situated in Special Economic Zone/
Free Trade Warehousing Zone/Electronic Hardware Technology park/Bio-Technology
park/ Export Processing Zone |
|
7. |
Goods
manufactured or exported by a unit licensed as hundred per cent Export Oriented
Unit |
|
8. |
Goods
exported under Advance Authorisation or Duty Free Import Authorisation issued
under the relevant Foreign Trade Policy |
|
9. |
Goods
manufactured and supplied by units in Domestic Tariff Area to units in Special
Economic Zone/Free Trade Warehousing Zone |
|
10. |
Goods
manufactured in Special Economic Zone/Free Trade Warehousing Zone / Export Oriented
Unit / Electronic Hardware Technology Park /Bio-Technology Park/ Export Processing
Zone and exported through DTA unit |
|
11. |
Goods
manufactured partly or wholly in a warehouse under section 65 of the Customs Act,
1962 (52 of 1962) |
|
12. |
Goods
availing the benefit of the notification No. 32/1997-Customs, dated the 1st
April, 1997 |
|
13. |
Goods
for which claim of duty credit is not filed in a shipping bill or bill of export
in the customs automated system |
|
14. |
Goods
that have been taken into use after manufacture. |
[F. No. CBIC-140605/12/2021-O/o
Dir(Drawback)- CBEC]