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Government of India
Ministry of Finance, Department of Revenue
Central
Board of Indirect Taxes & Customs
Drawback Division
Circular
No. 13/2020-Customs
Dated 19th February, 2020
To
All Principal Chief Commissioners/Chief Commissioners
of
Customs/Customs (Preventive)/Customs & Central Tax and
All Principal
Directors General/Directors General
under CBIC
Madam/Sir,
Subject: – Schemes for Rebate of State and Central Taxes and Levies (RoSCTL) and
Additional Ad-hoc Incentive for export of garments and made-ups.
As you are
aware, Government had notified the scheme for Rebate of State Levies (RoSL) to
mitigate the incidence of State VAT and other State taxes on export of garments
and made-ups (falling under Chapters 61, 62 and 63 of AIR schedule of duty
drawback). In this regard, Board’s Circulars No. 43/2016-Customs dated
31.08.2016 and
No. 8/2017-Customs dated 20.03.2017 refer.
1.1 As certain
State and Central levies remained unrebated in the export of garments and
made-ups, Ministry of Textiles (MoT) vide notification No. 14/26/2016-IT
(Vol.11) dated 07.03.2019 notified the scheme, namely, Rebate of State and
Central Taxes and Levies (RoSCTL) to rebate the incidence of various State as
well as Central taxes / levies suffered on export of garments and made-ups. MoT
has also notified the rates of rebate under RoSCTL scheme vide notification No.
14/26/2016-IT (Vol.11) dated 08.03.2019. Following the discontinuation of RoSL
scheme and introduction of the RoSCTL scheme w.e.f. 07.03.2019, the Board had
issued
Circular No. 10/2019-Customs dated 12.03.2019 for guidance of field
formations and the trade. In continuation of MoT’s aforesaid notification dated
07.03.2019, MoT’s Notification No 14/26/2016-IT(Vol.11)(Part II) dated
02.05.2019 elaborated on the nature of rebate, mechanism of issue of scrips,
over-claim/ claim based on mis-declaration and procedure for recovery under
RoSCTL scheme.
1.2 Further, it is to inform that DGFT vide their Public
Notice (PN) No. 58/2015-20 dated 29.01.2020 has withdrawn the benefit under
Merchandise Exports from India Scheme (MEIS) for items falling under Chapters
61, 62 and 63 w.e.f. 07.03.2019, i.e. the date of introduction of RoSCTL scheme.
1.3 Further, upon withdrawal of MEIS benefit for garments and made-ups
(falling under Chapters 61, 62 and 63), with a view to compensate exporters
affected under the RoSCTL scheme when compared with the benefit under erstwhile
RoSL + MEIS, Government vide MoT’s notification no. 14/26/2016-IT/Vol. II dated
14.01.2020 has notified the scheme for Additional Ad-hoc Incentive of upto 1% of
FoB value to be given to such exports of garments and made-ups.
1.4 Under
their said PN dated 29.01.2020, DGFT has revised paragraphs 4.95 and 4.96 of
Handbook of Procedures (HBP) to provide for procedure to apply for incentive,
recovery mechanism etc. under RoSCTL and Additional Ad-hoc Incentive schemes.
1.5 Copies of the above-cited notifications of MoT are available on
egazette.nic.in. DGFT’s PNs are available on their website dgft.gov.in. These
may be perused for further details of the respective schemes.
2. It may
be noted that under the erstwhile RoSL scheme that was in operation till
06.03.2019, the rebate was provided in exporter’s bank account based on
budgetary allocation of MoT. However, under the RoSCTL and Additional Ad-hoc
Incentive schemes, the rebate will be granted by DGFT in the form of electronic
duty credit scrips similar to the scrips issued under MEIS. The benefit under
the two schemes will be given in single electronic scrip to be utilised for
payment of duties of Customs and Central Excise. The scrips issued under the
schemes will be freely transferable. The procedure regarding use of electronic
scrips was provided in Board’s
Circular No. 11/2019-Customs dated 09.04.2019. The benefit of RoSCTL scheme shall be available for export of garments and
made-ups with Let Export Order (LEO) dates from 07.03.2019 to 31.03.2020, while
for Additional Ad-hoc Incentive scheme, the benefit shall be available for
exports with LEO dates from 07.03.2019 to 31.12.2019.
3. In pursuance of
the above referred developments, it is informed that Government has notified the
use of scrips for payment of specified duties of Customs under the RoSCTL and
Additional Ad-hoc Incentive schemes vide Notification No. 13/2020 -Customs dated
14.02.2020. Similarly, Notification No. 1/2020 —Central Excise dated 14.02.2020
has been issued which provides for use of scrips for payment of duties of
Central Excise for clearance of goods specified in the Fourth Schedule to the
Central Excise Act, 1944. These notifications may be seen for further details.
Systems Directorate in CBIC will also issue a suitable advisory in the matter.
4. Suitable Public Notice and Standing Order should be issued for guidance
of the trade and officers. Any difficulty faced should be immediately brought to
the notice of the Board.
F.No.605/04/2020-DBK (Vol.2
Yours faithfully,
(Atreyee Dev Roy) OSD
(Drawback)
Tel. 23341480
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