CBIC Issues Advisory on Implementation of RoDTEP Rates

The Central Board of Indirect Taxes and Customs (CBIC) has issued the Advisory on Implementation of Remission of Duties and Taxes on Exported Products (RoDTEP) rates.

As per the existing mechanism in place w.e.f. 01.01.2021, the RoDTEP claims were captured in the shipping bill and the amount of benefit was calculated at notional ad valorem rate and per unit value cap in the System and processed by the officers (under DBK_AC role) along with drawback processing. Scroll generation was not enabled owing to non-availability of RoDTEP rate structure.

A detailed ICES Advisory dated 31.12.2020 was issued by DG Systems outlining the manner of enabling RoDTEP claims in the shipping bills, processing of claims, scroll generation, generation of duty credit scrips and utilization of scrips in imports. Now that the RoDTEP rate structure has been notified, the changes required to be done in System for processing and generation of scroll, conversion of duty credit into duty scrips and utilization thereof for payment of Basic Customs Duty is being enabled.

For the RoDTEP claims captured in the shipping bills filed between 01.01.2021 to 00 Hrs of 01.10.2021, the notified ad valorem rates and per unit rate caps would be updated in the System. The benefits would be calculated in System as per the calculation logic as notified in the above Board Notification i.e., 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. The RoDTEP claims which have already been processed by the Customs officer or as per RMS facilitation for grant of drawback, such cases will not be sent to officer for processing of RoDTEP again.

The CBIC while emphasising on the benefit calculation and processing for prospective cases said, “For the shipping bills filed on or after 01.10.2021, 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. The RoDTEP claims would be processed either by the officer or facilitated by RMS and after processing, the shipping bill will be available for generation of scroll.”

Post filling of Gateway EGM in respect of the processed shipping bills, the RoDTEP Scrolls will be generated by the customs location in ICES. The scroll for shipping bills could be generated on FIFO basis w.e.f. 01.01.2021. Officers are advised to verify the correctness of the scroll amounts indicated in the temporary scroll before the final scroll is generated, like it is done for DBK and IGST scrolls. In an endeavor towards equity in benefit disbursal amongst various ports and to avoid any overloading of system due to processing of the backlog since 01.01.2021, the scroll generation would be enabled in a staggered manner in periods beginning from 01.01.2021, allowing one week time for each customs location for generating scrolls for one month. As usual, the scrolls can be generated for different dates (i.e., for each calendar date as per the shipping bills ready for scroll up to that particular date). This is also being done for equitable distribution of benefit as the quantum of benefit is limited to budgetary grant and is not unlimited.

The CBIC added, once the RoDTEP scroll is generated, the duty credit amount will be available within the ledger created for the IEC holder (or exporter) in their ICEGATE login to claim and convert it into duty credit scrip. A detailed Advisory has been published on the ICEGATE website outlining the process of claiming the duty credit scrips in ledger, transfer thereof to other IEC holder and utilization for the purpose of duty payment.

The owner of the scrip (either the original exporter beneficiary or any other IEC to whom the scrip was transferred on ICEGATE portal) can use these duty scrips in the Bill of Entry for the payment of the duty of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) i.e., Basic Customs Duty (BCD) only by giving the details of the scrips in the license table of the Bill of Entry.

The necessary changes related to implementation of RoDTEP in Systems have been incorporated in the ICES and shall come into effect from 1st October, 2021.