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Introduction

RoDTEP

• The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme formed to replace the MEIS (Merchandise Export Incentives Scheme).
• The scheme will ensure that the exporters receive the refunds on the embedded taxes and duties previously non-recoverable. The scheme was brought about with the intention to boost exports which were relatively poor in volume previously.

RoSCTL

• The RoSCTL (Rebate of State and Central Levies and Taxes) Scheme announced to improve the exports especially the textile which will be expanded to other sectors as well.
• It has been introduced as a replacement of previous “Rebate of State Levies (RoSL) Scheme” to rebate all embedded State and Central Taxes and Levies on garments and made-ups to enhance competitiveness of these sectors. 

Advisory No. 06/2021 Dated.21st March, 2022 – by ICEGATE (Custom) [Advisory for E-scrip to avail Export Incentive Schemes (RoSCTL, RoDTEP)]

E-Scrip Module

• The E-scrip module is developed by ICEGATE, CBIC to provide a digital service to exporters to avail benefits defined under various incentive schemes like RoDTEP and RoSCTL.
• The exporter can log in into his account and generate a script after selecting the relevant shipping bills.
• Escrip account can be used by the Importer/Exporter/CHA only after creating it at ICEGATE.
• The user has to be a valid IEC Holder registered on ICEGATE with a DSC.
• The broad provisions are as under - 

1. The exporter shall make declaration in Shipping bill to claim the incentives for RoDTEP/RoSCTL.
2. Once EGM is filed, claim will be processed by Customs.
3. After processing, a scroll with each individual Shipping Bill’s admissible amount will be generated.
4. The IEC holder registered on ICEGATE with a DSc can create an E-Scrip account under Escrip tab.
5. Exporter can log in into his account and generate scrip after selecting the relevant shipping bills.

• It has been decided that for the Chapters 61, 62 and 63, RoSCTL would continue to be given beyond 31.12.2020 and till 31.12.2024 instead of RoDTEP.
• Implementation of RoSCTL scheme in Custom Automated System has been developed with details in Annexure B (Page 18).
• As of now the users can log into their ICEGATE account and create the escrip Account, as scrip generation provision will be made functional on the issuance corresponding notification by the department and availability of the budget. Implementation of RoDTEP scheme in Custom Automated System has been developed. Details attached as Annexure A.

E-Scrip Account Creation

Escrip account can be used by the Importer/Exporter/CHA only after creating it at ICEGATE. 

The user has to be a valid IEC Holder registered on ICEGATE with a DSC. 

Below are the steps to create an Escrip Account with ICEGATE.

Step 1: -

· Log in to section of https://www.icegate.gov.in/

· Our Services – Select E-Scrip - option of E-scrip account creation

Step 2: -

· Select E-scrip option – From ‘Financial Services’

· If user is not registered, they can get themselves registered as per advisory through this link:

https://icegate.gov.in/Download/JavaSetupForDSC.pdf

Step-3: -

· If user has not created e-scrip initially, the following page will be displayed.

· Select the scheme name from the drop down as RoSCTL or RoDTEP and click on create E-scrip account button. 

Step-4: - 

· After user will directed to update the contact details.

· Enter New Email Id and contact Number.

· Authenticate with OTP

· The First 3 digits of OTP will be sent to – ICEGATE registered email id/ Mobile number of user.

· And the second part (Last 3 Digits) of the OTP will be sent to the new email id of the user which he has provided for update.

(It is mandatory to provide the complete OTP for updating the contact details.)

· All notifications/OTP related to scrip generation and transfer will be triggered on these updated details.

· To update the contact details of an existing e-scrip user, follow section A of Scrip Management Module.

Step-5: -

· After creation of e-Scrip account following details will be displayed 

· User can perform various operations mentioned as follows from this page:

1. SB Details

2. Scrip Details

3. Transaction Details

4. Scrip Transfer

5. Approve Scrip Transfer

6. Add Scheme

7. Update Contact details

Scrip Management Module

Here are the mechanisms the user can use to access the Online E-Scrip Module.

The user may go through various steps to cover all the online operations related to the E-Scrip.

A) Update Contact Details for Existing e-scrip users

B) Scrip Generation

C) Viewing Scrip details

D) Transaction Details

E) Scrip Transfer

F) Approve Scrip Transfer Request

G) Add Scheme  

Annexure A

Implementation of RoDTEP Scheme in Customs Automated System – Declarations in Shipping Bill and further processing 

1. Preface: 

è Manner of issuing duty credit for goods exported under scheme for RoDTEP notified vide notification No.76/2021-Cus Dt.23.09.2021.

è The final list of RITC/HS codes eligible for RoDTEP scheme and the rates were not notified on when scheme was operationalized w.e.f. 01.01.2021. Enabled only capturing of RoDTEP claims in the Shipping bill. 

è Now Govt notified the RoDTEP rates on the eligible export items vide NF No. 19/2015-20 Dt.17.08.2021 in Appendix 4R.

2. Existing mechanism: 

è The RoDTEP claims were captured in the SB and benefit amount was calculated at notional ad valorem rate and per unit value cap in the system and processed by the offiers (under DBK_AC role) along with drawback processing.

3. Benefit calculation and processing for retrospective cases: 

è The benefits would be calculated in system as per the calculation logic as notified in the board notification i.e., On value equal to declared export FOB value of the said goods or upto 1.5 time the market price of the said goods, whichever is less.

è 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.

4. Benefit calculation and processing for prospective cases: 

è Benefit will be calculated in the SB 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 upto 1.5 times maket price of the said goods, whichever is less. (SB Filed as on or after 01.10.2021)

è The RoDTEP claims would be processed either by the officer or facilitated by RM and after processing, the shipping bill will be available for generation of scroll.

5. Scroll Generation: 

è 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 in a phased manner.

6. Claiming of Duty Credits and Generation of Credit Scrips: 

è 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 (E Scrip Module) to claim and convert it into duty credit scrip.

7. Utilization of Scrips in Imports:

è The owner of Scrip can use these duty scrips in the BOE for the payment of the duty of customs leviable i.e., BCD only by giving the details of the scrip in the license table of the BOE.

è The Scheme code to be used in BOE for these scrips would be “RD” along with notification No as “RoDTEP”.

Annexure B

Implementation of RoSCTL Scheme in Customs Automated System – Declarations in Shipping Bill and further processing

1) Reference of the Notifications

- Invited to CBIC N/F No. 77/2021-Customs (N.T.) dated 24.09.2021 –

Notified manner of issue of duty credit for goods exported under the Scheme for Rebate of state and Central taxes and levies.

- Invited to CBIC Circular No. 22/2021-Cus Dt.30.09.2021 issued in this regards.

- Issued DFGT Notification .No. 12015/11/2020-TTP dated 13.08.2021 

As per the notification of the Ministry of Textiles dated 08.03.2019, the RoSCTL scheme would be retroactively applied to Chapters 61-63 as of 01.01.2021 with the exclusion of RoDTEP.

2) Existing Mechanism: 

- Claim of RoSCTL in Shipping bill was disallowed and RoDTEP was allowed to be claimed at item level. For that RoSCTL Scheme code were discontinued to be claimed in the SB. W.e.f. 01.01.2021.

- The RoDTEP claim was allowed in addition to drawback.

- Now RoSCTL scheme had been continued retrospectively w.e.f. 01.01.2021 tilll 31.03.2024 for chapter 61,62, & 63in exclusion of RoDTEP for these chapters.

3) RoSCTL Claim, benefit calculation and processing for prospective case: 

· With enablement of RoSCTL scheme availing benefit of scheme the claim has to be made by the exporter in the EDI SB using Scheme codes for drawback exportes, at the item level.

The options for RoSCTL scheme are being provided with separate scheme-code as listed below:

(There is no requirement of separate application or supporting documents in the SB along with a declaration. In the absence of proper scheme codes, the RoSCTL benefit would not be available.)

· RoSCTL rate directory notified by Ministry of Textile consist of four schedule vide NF. No. 14/26/2016-IT dt.08.03.2019.

· Additionally, at item level, a mandatory declaration has to be submitted in the Statement Table of the Shipping Bill as below.

o STATEMENT TYPE = DEC

o STATEMENT CODE = RS001

Submission of the above statement code for RoSCTL availed items would indicate that the exporter has made the necessary declaration, while claiming RoSCTL benefit.

· RoSCTL benefit would be calculated in system as per calculation logic notified by board as discussed above. 

4) RoSCTL claim, benefit calculation and processing for retrospective cases: 

· RoSCTL scheme was not applicable w.e.f. 01.01.2021 there was no provision in system to avail RoSCTL. Now for retrospective cases, the RoSCTL amount would be calculated by system for the relevant tariff items under chapter 61, 62 & 63 for cases only where both RoDTEP & Drawback were claimed at item level.

· RoSCTL benefit calculated on value equal to declared export FOB value of the goods or upto 1.5 times the market price of the said goods, whichever is less.

· For instance, for the shipping bills where RoDTEP was not claimed and only drawback was claimed (i.e., scheme code 19) for tariff items under chapter 61,62 and 62, the RoSCTL benefit will not be given as the exporter had filed claim for drawback only. Similarly, where RoDTEP was claimed but drawback was not claimed, no RoSCTL benefit would be given

· The past cases for which drawback have already been processed by the custom officer or as per RMS facilitation for grant of drawback will not be sent to officer for processing of RoSCTL.

· RoSCTL claims would be applicable to SB filled on or after 01.01.2021 or after. SB filed prior to 01.01.2021 but processed after 01.01.2021, it will not be eligible for RoSCTL benefit. 

Hence , date of filing of SB is relevant date.

5) Scroll Generation: 

Post filing of Gateway EGM in respect of the processed shipping bills, the RoSCTL Scrolls can be generated by the customs location in ICES in similar manner as is being done for drawback/IGST scroll. The scroll could be generated for shipping bills on FIFO basis w.e.f. 01.01.2021 in a phased manner.

6) Claiming of Duty Credits and Generation of Credit Scrips: 

Once the RoSCTL scroll is generated, the duty credit amount will be available within the ledger created for the IEC holder (or exporter) in their ICEGATE login (E Scrip Module) to claim and convert it into duty credit scrip.

7) Utilization of Duty Scrips in Imports:

- The scrip owner or any other IEC to whom the scrip was transferred on ICEGATE can use these duty scrips in the BOE for the payment of the duty customs leviable under the first schedule to the Custom Act,1975.

- The scheme code to be used in Bill of Entry for these scrips would be “RS” along with Notification No as “ROSCTL”

Comments

1. Implementation of RoDTEP has been developed in Custom Automated System
2. Implementation of RoSCTL scheme has been developed in custom automated system and decided that for the chapter 61, 62, 63 RoSCTL whould continue to be given beyond 31.12.2020 and till 31.12.2024 instead of RoDTEP.
3. The user who are using the portal or the custom automated system for generating export incentives scheme escrip may follow the various functions of the system to complete data updation, selection of scheme, updating the contact details and authenticating with OTP. 
4. For that guidelines are issued under the concern notification.
5. The user at ICEGATE create the E-Scrip account on the Online Portal.
6. User has to update the new contact details (Email ID & Mobile No) in the Escrip account creation section also the registered user Authenticate account using new mobile no and email with OTP.
7. 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.
8. Now the govt notified the RoDTEP rates on the eligible export items which were not notified on when scheme was operationalized w.e.f 01.01.2021. (Appendix 4R)
9. The benefits under RoDTEP 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.
10. The RoSCTL amount will be calculated as individual sum of rebate of State component (Sch 1 rate or Sch 3 rate, as applicable) as per ad valorem rate or value cap, if any and rebate of Centre component (Sch 2 or Sch 4, as applicable) as per ad valorem rate or value cap, if any
11. The RoSCTL amount would be calculated by system for the 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. 
12. And the RoSCTL benefit would 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. 
13. The RoSCTL scheme would be retroactively applied to Chapters 61-63 as of 01.01.2021 with the exclusion of RoDTEP.

Article authored by Audumbar B P.

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