RoDTEP Committee requests data for determination of RoDTEP rates for Advance Authorization Holders / Export Oriented Units / Special Economic Zone Units

by | Nov 10, 2021 | Outlook

We apprised you that the Central Government vide Order F. No. 605/14/2021-DBK/758-771 dated October 18, 2021, has constituted the Committee for determination of RoDTEP rates on exports made by Advance Authorization Holders (‘AA holders’) / Export Oriented Units (‘EOUs’) and Special Economic Zone Units (‘SEZ Units’). 

Recently, DGFT has issued Trade Notice No.23/2021-22 dated November 9, 2021, enclosing Letter No. F.No.605/19/2021-DBK/876-947 dated October 28, 2021 (‘Letter’) issued by the CBIC as Appendix. In the Letter, the CBIC has sought data from Trade Organizations to determine RoDTEP rates for AA holders / EOUs / SEZ Units under the RoDTEP Scheme. The data sought is with respect to inputs used in respective export products in specified proforma (Annexure-B to Letter) which needs to be submitted within 3 weeks from October 28, 2021. RoDTEP Committee needs to furnish its final report to Government within 8 months. Letter also contains multiple checkpoints for collation and providing data which are as under:

  • For exports undertaken between October 2019 and March 2020, complete data needs to be given. The specifics of all inputs utilised in manufacturing of all types of a manufactured export item needs to be given for that manufactured export item. 
  • Scope of duties, taxes and levies should be limited to currently unrefunded duties borne by export item at Central, State and Local levels excluding Duty Drawback, GST refunds, Central / State Government exemptions, Subsidies etc. Indicative list of duties, taxes and levies are provided in Annexure-C that are currently unrefunded. 
  • Only data for exports made by AA holders / EOUs / SEZ Units needs to be submitted. Data should be supported by copies of relevant documents like invoices of inputs, shipping bill of export products, State Government Notifications etc. Data needs to be certified by a Chartered Accountant / Cost Accountant. 
  • Only such exporters should furnish data who are ready to get their records inspected by the Customs / Central Excise Department if needed for validating accuracy of data. 

In addition, the CBIC has requested Trade Organizations to furnish similar data / file representations for any apparent error or anomalies existing in already prescribed RoDTEP rates. 

NITYA Comments: After multiple representations from industry stakeholders, the Government has now constituted RoDTEP committee to examine RoDTEP rates for AA Holders, EOUs and SEZ Units. There was a legitimate hue and cry for excluding AA Holders from RoDTEP benefit when this benefit is granted along with Duty Drawback. Similarly, exclusion of EOUs and SEZ Units defied logic. 

Time limit of 3 weeks for submission of data is unrealistic and is expected to be extended.