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November 25, 2021
All Articles by: Mr.M. GOVINDARAJAN       View Profile
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Ledger for duty credit

Section 51B was introduced by the Finance Act, 2020 in Customs Act, 1962 (‘Act’ for short). Section 51B (1) gives powers to Central Government to specify the manner in which the duty credit shall be issued-

  • in lieu of remission of any duty or tax or levy, chargeable on any material used in the manufacture or processing of goods or for carrying out any operation on such goods in India that are exported; or
  • in lieu of such other financial benefit subject to such conditions and restrictions as may be specified therein.

Section 51B (2) of the Act provides that the person who is the recipient of duty credit shall maintain in the Customs Automated System in the form of Electronic Credit Ledger in the prescribed manner.

Section 51B (3) of the Act provides that the duty credit available in the electronic duty credit ledger may be used by the person to whom it is issued or the person to whom it is transferred, towards making payment of duties payable under this Act or under the Customs Tariff Act, 1975 in such manner and subject to such conditions and restrictions and within such time as may be prescribed.

Power to make Regulations

Section 157(ja) of the Act gives powers to the Central Government to make regulations in the manner of maintaining electronic duty credit ledger, making payment from such ledger, transfer of duty credit from ledger of one person to the ledger of another and the conditions, restrictions and time limit relating thereto.


The Central Board of Indirect Taxation vide Notification No. 75/2021-Customs (Non Tariff), dated 23.09.2021 made ‘the Electronic Duty Credit Ledger Regulations, 2021’ (‘Regulations’ for short) which came into effect from 23.09.2021.


Before going into the provisions of these Regulations we have to see some definitions of expressions that are useful for the purpose of these Regulations.


Regulation 2(1)(i) defines the term ‘scheme’ as the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) or the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL). The RoDTEP is the much awaited scheme which seeks to replace the Merchandise Exports from India Scheme (MEIS). The RoSCTL scheme is the scheme for textiles exporters and said the duty credit scrips under this support measure would be issued without insisting on realization of the export proceeds.

Duty credit

Regulation 2(1)(d) defines the expression ‘duty credit’ as the amount of credit of duty allowed by Customs against a claim under the Schemes.


Regulation 2(1)(b) defines the term ‘claim’ as a claim of duty credit under the Schemes, made by an exporter in the shipping bill or bill of export by providing the appropriate declaration at the item level in the said shipping bill or bill of export in the customs automated system.


Regulation 2(1)(j) defines the term ‘scroll’ as the list generated in the customs automated system containing details of shipping bills or bills of export and the duty credit amounts allowed by Customs against the said shipping bills or bills of export.

Issuance of duty credit

A shipping bill or a bill of export presented under the provisions of the Act on or after 01.01.2021, having a claim of customs duty under the scheme shall be processed in the customs automated system, including on the basis of risk evaluation through appropriate selection criteria. The said claim shall be allowed by Customs as per the conditions and restrictions notified for the Scheme, after the filing of export manifest or export report. After this the proper officer shall generate a scroll for duty credit in the automated system. Each scheme will have a separate scroll. The scroll details will be visible in the customs automated system to the exporter receiving such credit.


‘E-scrip’ is the scrip, created in the ledger for duty credit.


The exporter shall have the option to combine the duty credits under a particular Scheme, allowed to him in one or more shipping bills or bills of export, and to carry forward the said duty credits to create an e-scrip for that Scheme in the ledger, customs station-wise according to the customs station of export, within a period of one year from the date of generation of the scroll in the customs automated system. If the exporter does not give option within the period of one year duty credit in each scroll will be combined customs station-wise for each Scheme and will be automatically created by the customs automated system as a single e-scrip for duty credit for that Scheme, for each customs station, in the ledger of the said exporter.

A Unique Identification Number and date of creation will be given to each e-scrip. All transactions in the ledger shall contain the said number and date.


The customs station of export shall be the customs station of registration for an e-scrip. This registration is automatic. No separate application is required to be filed for such registration.

Use of script

The duty credit available in the e-scrip in the ledger shall be used for payment of duties of Customs specified in the First Schedule to the Customs Tariff Act, 1975. 


The e-scrip shall be valid for a period of one year from the date of its creation in the ledger and any duty credit in the said e-scrip remaining unutilized at the end of this period shall lapse. The lapsed credit cannot be re-generated. The period of validity of the e-scrip, of one year from its creation, shall not change on account of transfer of the e-scrip.

Transfer of duty credit

The transfer of duty credit in e-scrip shall be allowed within the customs automated system from the ledger of a person to the ledger of another person who is a holder of an Importer-exporter Code Number. Only the entire credit shall be transferred not in part.


The ledger, including e-scrip and the transactions made therein, The ledger of the transferee, including e-scrip and the transactions made therein shall be visible in the customs automated system to the transferee and the Customs.

Suspension or cancellation

Where a person contravenes any of the provisions of the Act or any other law for the time being in force or the rules or regulations made there under in relation to the exports to which the duty credit relates, or in relation to the e-scrip, the said duty credit or e-scrip may be suspended or cancelled in the ledger in the manner as notified by the Central Government under section 51B of the Act.


By: Mr.M. GOVINDARAJAN - November 25, 2021



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