Regulations for issuance of Electronic Duty Credit Scrips under RoDTEP Scheme

by | Sep 28, 2021 | Insight | 1 comment

We shared a booklet detailing basic concept, procedures and key issues relating to Remission of Duties and Taxes on Exported Products (‘RoDTEP’) Scheme (https://nityatax.com/rodtep-scheme-concept-procedures-and-key-issues/). The Central Government has now issued Notification No. 75-76/2021-Customs (NT) dated September 23, 2021, notifying regulations for issuance of Electronic Duty Credit Scrips (‘e-scrips’) under the Scheme. Key highlights of these Notifications are as under:

A. Manner, Conditions and Restrictions for issuance of e-scrips

  • Exporter must declare its intent on Shipping Bill or Bill of Export on Customs Automated Systems (‘Portal’).
  • E-scrips will be issued subject to exports from EDI ports and electronic processing on Portal.
  • Value for calculation of duty credit shall be declared FOB value of export goods or upto 1.5 times market price of goods, whichever is less.
  • Issuance of e-scrips will be subject to realization of sale proceeds within period allowed under the Foreign Exchange Management Act, 1992 else e-scrips will be ineligible.
  • E-scrips for exports made to Nepal, Bhutan and Myanmar will be allowed only if sale proceeds are realized against irrevocable letter of credit in freely convertible currency.
  • E-scrips can only be used for payment of Basic Customs Duty (BCD).
  • Procedure has been provided for cancellation of e-scrips and recovery of amount of e-scrips where claimed in excess or where sale proceeds are not realized 

B. Electronic Duty Credit Ledger Regulations, 2021

The Central Government has notified the Electronic Duty Credit Ledger Regulations, 2021 (‘EDCL Regulations’). EDCL Regulations provide for issuance of e-scrips, their use, validity, and transfer. EDCL Regulations are briefly summarized as under:

Sl. No.

Description

Regulations

1

Issuance of e-scrips in scroll

·          Shipping Bill or Bill of Export filed on or after January 1, 2021 and having claim of RoDTEP shall be eligible to be processed in Portal.

 

·          Claim shall be allowed subject to notified conditions and restrictions and after filing of export manifest or export report.

 

·          Once claim is allowed, scroll for e-scrips will be generated in Portal. Scroll will be visible on Portal to exporter.

 

2

Creation of e-scrips in ledger

·          Exporters can combine duty credits allowed in one or more Shipping Bills or Bills of Export and carry forward them to create an e-scrips in ledger (customs station wise) within 1 year from date of generation of scroll.

 

·          Failure to exercise such option within one year will result in automatic creation of e-scrips in Portal as single e-scrips for each customs station.

 

·          Each e-scrips will have unique identification number and date of its creation and all transactions are to be carried out using such details.

 

3

Use and validity of e-scrips

·          E-scrips can only be used for payment of BCD.

 

·          E-scrips will be valid for one year from date of creation in ledger. Any unutilized e-scrips will lapse.

 

4

Transfer of e-scrips

·          Transfer of e-scrips will be allowed on Portal from exporter’s ledger to ledger of another person holding IEC. Single e-scrips will be transferred in entirety. Part transfer of one e-scrips will not be permitted.

 

·          Validity period of one year will not change even upon transfer of e-scrips.

 

5

Suspension and cancellation of e-scrips

·          E-scrips will be cancelled or suspended if exporter contravenes any provisions of the Customs law or rules and regulations framed thereunder.

 

1 Comment

  1. Shaifali Arora

    Nice

    Reply

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