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Exporters To-Do List in Nov’21 & Dec’21: Rodtep/Agri-Tma & Foreign Trade Policy

Process & Procedures for RoDTEP:

The following process would be followed for RoDTEP

(i) Exporters to register their IEC on ICEGATE with a DSC.

(ii) To avail of the scheme exporter shall make a claim for RoDTEP in the shipping bill by making a declaration.

(iii) Once EGM is filed, the claim will be processed by Customs.

(iv) Once processed a scroll with all individual Shipping Bills for admissible amount would be generated and made available in the user account at ICEGATE

(v) User can create RoDTEP credit ledger account under Credit Ledger tab. This can be done by IECs who have registered on ICEGATE with a DSC.

(vi) Exporter can log into his account and generate scrip after selecting the relevant shipping bills.

RoDTEP Scheme – Exporters to Do List:

The following is the list of items which the exporters must carefully note and get completed in Nov’21 & Dec’21 –

1. Effective Date for the Implementation of the Scheme is 1st Jan 2021. In the SBS from 1st Jan the intent of availing RoDTEP benefit needs to be filled in addition to drawback. In case not done, applications need to be filed with Customs/DGFT for amendment of SBs. This is a pre-condition for availing RoDTEP.

It has also been categorically provided that no changes in the claim will be allowed after the filing of the EGM

2. RoDTEP Scheme will operate in a Budgetary framework for each FY and may be revised as and when required. The remissions for each FY will be managed within the approved Budget. No provision for remission of arrears or contingent liabilities is permissible under the Scheme to be carried over to the next financial year.

Hence Industry should prepare for FIRST COME FIRST SERVE MODEL.

3. Rates of rebate/value cap per unit under RoDTEP will be notified in Appendix 4 R. Industry should confirm their rate based on 8 Digit HSN.

4. The rebate allowed is subject to the receipt of sale proceeds within the time allowed under FEMA… This and other application documents should be filed in one place for a future Audit by Dept.

5. RoDTEP Duty Credit will be available in an electronic ledger that needs to be created. However, the scrips need to be generated.

6. Scrips shall be utilized or transferred within 1 year (detailed procedures are awaited)

7. Textiles Sector will continue to avail RoSCTL and will not get avail RoDTEP

8. The Scheme will not be available for exporters who avail Advance Authorization or DFIA or Special Advance Authorization is taken/ Products manufactured or exported by 100% EOU/ FTZ/EPZ/SEZ. An immediate Cost-Benefit Analysis needs to be made.

9. In respect of the past transaction under AA, if SB had been filed under a claim of RoDTEP, ensure that the claim is surrendered.

10. Scrips would be used Only for payment of duty of Customs leviable under the First Schedule to the Customs Tariff Act, 1975 viz. Basic Customs Duty. No Additional duty/SWS/ other cesses can be paid through the scrips. The cash flows need to be planned accordingly.

11. Ineligible for Products manufactured partly or wholly in a warehouse under Customs. Again, planning and Cost-Benefit analysis need to be done whether to take the warehousing /MOOERS scheme of RoDTEP.

12. Ineligible for Exports through Non-EDI Ports. Planning may be done whether to export through an alternative Port/Mode.

13. Available to Merchant Exporters also and not only to manufacturers. Hence SME Exporters need to gear up to take benefit.

14. Govt. can Revise rates during the year, based on Budget. Hence continuous policy intervention would be there. Therefore, Industry Associations need to be in constant touch with CIM.

15. A broad level monitoring through an Output Outcome framework will be done. Hence all trade Associations should have a tab on their respective Industry and should keep doing such Output Outcome Analysis

16. EPCG Takers: The restriction under Scheme does not cover the capital goods under the imported EPCG Scheme. Thus, you may continue to claim the benefit of EPCG and RoDTEP simultaneously.

17. Transmission Errors – Needs to be rectified.

18. Reflection of actual values in the system – Customs notification restricts the benefit on FOB value to the extent of 1.5 times the market value of similar goods

19. Non-approval of duty credit in the system by Customs

20. Customs Officer can defer benefit in case bonafide-ness is in doubt. Customs Authorities/DGFT may recover in case found irregular due to “any reason”

21. for MEIS (for exports made in the period (s) 01.07.2018 to 31.12.2020)

22. for SEIS (for service exports rendered in FY 18-19 and FY 2019-20),

23. for 2% additional ad hoc incentive (under para 3.25 of the FTP – for exports made in the period 01.01.2020 to 31.03.2020 only),

24. for ROSCTL (for exports made from 07.03.2019 to 31.12.2020) and.

25. for ROSL (for exports made up to 06.03.2019 for which claims have not yet been disbursed under scrip mechanism).

After 31.12.2021, no further applications would be allowed to be submitted and they would become time-barred. Late cut provisions shall also not be available for submitting claims at a later date.

  1. The new late cut for applications submitted up to 31.12.2021 as indicated above shall be:
Sl no. Scheme Period of Exports (Let Export Date in the period) /Services rendered in the period Late Cut (as % age of Entitlement under the Scheme)
1 MEIS FY 2018-19 (01.07.2018 to 31.03.2019) 10%
2 MEIS FY 2019-20 and FY 2020-21 (up to 31.12.2020) Nil
3 SEIS FY 2018-19 5%
4 SEIS FY 2019-20 Nil
5 ROSCTL 07.03.2019 to 31.12.2020 Nil
6 OSL Up to 06.03.2019 Nil

 

The validity of any scrip issued under FTP from the date of this Notification has been notified to be 12 months from the date of issue

27. SEIS

  • A list of eligible services and rates under SEIS for services rendered in the FY 2019-20 is being notified.
  • A limit on total entitlement under SEIS has been imposed for service exports rendered in the period 01.04.2019 to 31.03.2020 and capped at ₹ 5 Cr per IEC.
  • Further, it has been notified that the facility to claim benefits under SEIS on payments in Indian Rupees shall not be available for services rendered in the FY 2019-20.
  • It is also notified that the deadline for submission of SEIS applications for FY 2019-20 shall be 12.2021 and late cut provisions for such applications shall not apply i.e. SEIS applications for FY 2019-20 will become time-barred after 31.12.2021.

Advance Authorization/ EPCG: To-Do List

  • For Advance Authorizations & EPCG, where the original or extended Export Obligation (EO) period is expiring during the period between 01.08.2020 and 31.07.2021, the Export Obligation period would be extended till 31.12.2021 without any composition fees. However, this extension is subject to 5% additional export obligation in value terms (in free Foreign Exchange) on the balance of Export Obligation on the date of expiry of the original/extended export obligation period.

Profile photo of CA Vivek Jalan CA Vivek Jalan

Vivek Jalan, from Tax Connect, is a Chartered Accountant & a qualified L.LM & LL.B. He is The Chairman of The Ease of Doing Business Committee therein. He is a member of The Confederation of Indian Industries (CII)- Economic Affairs & Taxation Committee. He is the Member of The Consultative Committee of The Commissioner of SGST. He is also The Member of The Regional Advisory Committee of The Chief Commissioner of CGST. He is advising Large MNCs, PSUs & PAN India Organizations in GST & Income Tax and has offices in Kolkata, Delhi, Bangalore, Mumbai & now Surat. He is a regular Columnist and guest expert in Economic Times, Times of India, Dalal Street Journal, Money Control, Live mint, CNBC, Hindustan Times, Zee Business, Financial Express, other dailies, and business magazines like Business Today, etc. He is also a guest expert on Taxation matters in All India Radio and other media platforms. He is the Editor of Weekly Bulletin TAX CONNECT, a publication on Indirect Taxes and Direct Taxes which reaches more than 70000 professionals.

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