TMI BlogDUTY EXEMPTION /REMISSION SCHEMESX X X X Extracts X X X X X X X X Extracts X X X X ..... d down separately. ] 21 [ (e) Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) notified by Department of Commerce and administered by Department of Revenue. ] 4.02 Applicability of Policy Procedures Authorisation under this Chapter shall be issued in accordance with the Policy and Procedures in force on the date of issue of the Authorisation. 4.03 AdvanceAuthorisation (a) Advance Authorisation is issued to allow duty free import of input, which is physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, catalyst which is consumed / utilized in the process of production of export product, may also be allowed. (b) Advance Authorisation is issued for inputs in relation to resultant product, on the following basis: (i) As per Standard Input Output Norms (SION) notified (available in Hand Book of Procedures); OR (ii) On the basis of self declaration as per paragraph 4.07 of Handbook of Procedures. OR (iii) Applicant specific prior fixation of norm by the Norms Committee. OR (iv) On the basis of Self Ratification Scheme in terms of Para 4.07A of Foreign Trade Policy. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isation shall not be permitted. (vi) The fabric imported shall be subject to pre-import condition and it shall be physically incorporated in the export product (making normal allowance for wastage). Only Physical exports shall fulfil the export obligation. (vii) Provisions of paragraphs 4.02, 4.05(a), 4.13(i), 4.13(ii), 4.14, 4.15, 4.17, 4.19, 4.21(i), 4.21(ii), 4.21 (iii), 4.21(v), 4.22(i), and 4.24 of Foreign Trade Policy shall be applicable in so far as they are not inconsistent with this scheme. 4.05 Eligible Applicant / Export / Supply (a) Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer. (b) Advance Authorisation for pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated in paragraph 4.18 of Handbook of Procedures) shall be issued to manufacturer exporter only. (c) Advance Authorisation shall be issued for: (i) Physical export (including export to SEZ); (ii) Intermediate supply; and/or (iii) Supply of goods to the categories mentioned in paragraph 7.02 (b), (c), (e), (f), (g) and (h) of this FTP. (iv) Supply of stores on board of foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be available for the following inputs. a) All vegetable / edible oils classified under Chapter-15 and all types of oilseeds classified under Chapter-12 of ITC (HS) book; b) All types of cereals classified under Chapter 10 of ITC (HS) book; c) Horn, hoof and any other organ of animal; d) Wild animal products, organs and waste thereof; e) Honey; f) All items with basic customs duty of 30% or more; g) All types of fruits/ nuts/ vegetables classified under Chapter-7 and Chapter-8 of ITC (HS) book; h) Items covered under heading 2515, 2516, 3301, 3302, 3303 6801 and 6802 of ITC(HS) Classification; i) Items covered under Chapter 50 to 63 of ITC(HS) classification. j) Acetic Anhydride, Ephedrine and Pseudoephedrine; k) Vitamins; l) Biotechnology items and related products; m) Insecticides, Rodenticides, Fungicides, herbicides, Anti sprouting products, and plant growth regulators, disinfectants and similar products of all forms, types and grades; n) Waste/Scrap of all types; and o) Second hand goods. vii. Inputs imported shall be subject to pre import condition and they shall be physically incorporated in the export product (making normal all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions applicable for Advance Authorisation Scheme shall be applicable to this scheme also in so far they are not inconsistent with this scheme. 4.08 Value Addition Value Addition for the purpose of this Chapter (except for Gems and Jewellery sector for which value addition is prescribed in paragraph 4.38 of FTP) shall be:- VA = A-B x100, where B A =FOB value of export realized/FOR value of supply received. B =CIF value of inputs covered by Authorisation, plus value of any other input used on which benefit of DBK is claimed or intended to be claimed. 4.09 Minimum Value Addition (i) Minimum value addition required to be achieved under Advance Authorisation is 15%. (ii) Export Products where value addition could be less than 15% are given in Appendix 4D. (iii) Deleted (iv) Minimum value addition for Gems Jewellery Sector is given in paragraph 4.61 of Handbook of Procedures. (v) In case of Tea, minimum value addition shall be 50%. 4.10 Import of Mandatory Spares Import of mandatory spares which are required to be exported / supplied with the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of these inputs actually used/consumed in production, within overall quantity against such group of inputs. Proportion of these inputs actually used/consumed in production of export product shall be clearly indicated in shipping bills. (iii) At the time of discharge of export obligation (issue of EODC) or at the time of redemption, Regional Authority shall allow only those inputs which have been specifically indicated in the shipping bill together with quantity. (iv) The above provisions will also be applicable for supplies to SEZs and supplies made under Deemed exports. Details as given above will have to be indicated in the relevant Bill of Export, ARE-3, Central Excise certified Invoice / import document / Tax Invoice for export prescribed under the GST rules 4.13 Pre-import condition in certain cases (i) DGFT may, by Notification, impose pre-import condition for inputs under this Chapter. (ii) Import items subject to pre-import condition are listed in Appendix 4-J or will be as indicated in Standard Input Output Norms (SION). (iii) Import of drugs from unregistered sources shall have pre-import condition. 4.14 Details of Duties exempted 9 [ Impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r within the same factory or outside (by a supporting manufacturer). For this, the Authorisation holder shall produce a certificate from either the 10 [******] or Chartered Accountant, at the option of the exporter, at the time of filing application for Export Obligation Discharge Certificate to Regional Authority concerned. (iii) Waste / Scrap arising out of manufacturing process, as allowed, can be disposed off on payment of applicable duty even before fulfillment of export obligation. 4.17 Validity Period for Import and its Extension Validity period for import under Advance Authorisation shall be as prescribed in Handbook of Procedures. 4.18 Importability/Export ability of items that are Prohibited/Restricted/ STE (i) No export or import of an item shall be allowed under Advance Authorisation / DFIA if the item is prohibited for exports or imports respectively. Export of a prohibited item may be allowed under Advance Authorisation provided it is separately so notified, subject to the conditions given therein. (ii) Items reserved for imports by STEs cannot be imported against Advance Authorisation / DFIA. However, those items can be procured from STEs aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TA can procure inputs from / SEZ units without obtaining Advance Release Order or Invalidation Letter. (vi) Deleted (vii) Validity of Advance Release Order / Invalidation Letter shall be coterminous with validity of Authorisation. 4.21 Currency for Realisation of Export Proceeds. 25 [ (i) Export proceeds shall be realized in freely convertible currency or in Indian Rupees as per para 2.53 of FTP, except otherwise specified. Provisions regarding realisation and non-realisation of export proceeds are given in paragraph 2.52, 2.53 and 2.54 of FTP. ] (ii) Deleted (iii) Export to SEZ Units shall be taken into account for discharge of export obligation provided payment is realised from Foreign Currency Account of the SEZ unit. (iv) Export to SEZ Developers / Co-developers can also be taken into account for discharge of export obligation even if payment is realised in Indian Rupees. (v) Authorisation holder needs to file Bill of Export for export to SEZ unit / developer / co-developer in accordance with the procedures given in SEZ Rules, 2006. 4.22 Export Obligation Period and its Extension Period for fulfilment of export obligation and its extension u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led with concerned Regional Authority before effecting export under Duty Free Import Authorisation. 2 [(iv) No Duty Free Import authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribes 'Actual User' condition or Appendix-4J prescribes pre import condition for such an input.] 4.28 Minimum Value Addition Minimum value addition of 20% shall be required to be achieved. 4.29 Validity Transferability of DFIA (i) Applicant shall file online application to Regional Authority concerned before starting export under DFIA. (ii) Export shall be completed within 12 months from the date of online filing of application and generation of file number. (iii) While doing export/supply, applicant shall indicate file number on the export /supply documents viz. Shipping Bill / / Bill of Export / Tax invoice for supply prescribed under GST rules. (iv) In terms of Para 4.12 of FTP, Wherever SION permits use of either (a) a generic input or (b) alternative input, the specific input together with quantity [which has been used in manufacturing the export product] should be indicated / endorsed in the relevant Shipp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resin, Hydroxy Ethyl Cellulose), Lining Material . (b) While issuing Duty Free Import Authorisation, Regional Authority shall mention technical characteristics, quality and specification in respect of above inputs in the Authorisation. SCHEMES FOR EXPORTERS OF GEMSAND JEWELLERY 4.31 Import of Input Exporters of gems and Jewellery can import / procure duty free (excluding Integrated Tax and Compensation Cess leviable under Section 3(7) and 3(9) of customs Tariff Act) input for manufacture of export product. 4.32 Items of Export Following items, if exported, would be eligible: 8 [ (i) Gold jewellery, including partly processed jewellery and articles including medallions and coins (excluding legal tender coins), whether plain or studded, containing gold of 8 carats and above up to maximum limit of 22 carats. Gold religious idols (only gods and goddess) of 8 carats and above (upto 24 carats) subject to the following conditions: i) Exports would be subject to 100% examination by the Approved Government Valuer. ii) Foreign remittance has to be realised within a period of 3 months from the date of export. iii) Exporters must submit confirmed exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... num jewellery and articles thereof, the value of Gem Replenishment Authorisation shall be on the remaining FOB value of exports after deducting the value of gold/ silver/ platinum including admissible wastage. The scale of replenishment and the item of import will be as prescribed in Appendix 4G. 4.36 Replenishment Authorisation for Consumables (i) Replenishment Authorisation for duty free (excluding Integrated Tax and Compensation cess leviable under Section 3(7) and 3(9) of Customs Tariff Act)import of Consumables, Tools and other items namely, Tags and labels, Security censor on card, Staple wire, Poly bag (as notified by Customs) for Jewellery made out of precious metals (other than Gold Platinum) equal to 2% and for Cut and Polished Diamonds and Jewellery made out of Gold and Platinum equal to 1% of FOB value of exports of the preceding year, may be issued on production of Chartered Accountant Certificate indicating the export performance. However, in case of Rhodium finished Silver jewellery, entitlement will be 3% of FOB value of exports of such jewellery. This Authorisation shall be non-transferable and subject to actual user condition. (ii) Application for imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules, respectively. (ii) Nominated Agencies are MMTC Ltd, The Handicraft and Handlooms Exports Corporation of India Ltd, The State Trading Corporation of India Ltd, PEC Ltd, STCL Ltd, MSTC Ltd, and Diamond India Limited. (iii) Notwithstanding any provision relating to import of gold by Nominated Agencies under Foreign Trade Policy (2015-2020), the import of gold by Four Star and Five Star Houses with Nominated Agency Certificate is subjected to actual user condition and are permitted to import gold as input only for the purpose of manufacture and export by themselves during the remaining validity period of the Nominated Agency certificate. (iv) Reserve Bank of India can authorize any bank as Nominated Agency. (iv) Procedure for import of precious metal by Nominated Agency (other than those authorized by Reserve Bank of India and the Gems Jewellery units operating under EOU and SEZ schemes) and the monitoring mechanism thereof shall be as per the provisions laid down in Hand Book of Procedures. (v) A bank authorised by Reserve Bank of India is allowed export of gold scrap for refining and import standard gold bars as per Reserve Bank of India guidelines. 4.42 Im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andbook of Procedures. In such cases of export, wastage norms as per paragraph 4.60 of Handbook of Procedures shall apply. (iii) Exports may be made by nominated agencies directly or through their associates or by status holder / exporter. Import and Export of findings shall be on net to net basis. 4.46 Export Promotion Tours/ Export of Branded Jewellery (i) Nominated Agencies and their associates, with approval of Department of Commerce and with approval of Gem Jewellery Export Promotion Council (GJEPC), may export gold / silver / platinum jewellery and articles thereof for exhibitions abroad. (ii) Personal carriage of gold / silver / platinum jewellery, precious, semi-precious stones, beads and articles and export of branded jewellery is also permitted, subject to conditions as in Handbook of Procedures. 4.47 Personal Carriage of Export /Import Parcels Personal carriage of gems and jewellery export parcels by foreign bound passengers and import parcels by an Indian importer/foreign national may be permitted as per the Handbook of Procedures. 4.48 Export by Post Export of jewellery through Foreign Post Office including via Speed Post is allowed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery exporters shall be allowed to export cut and polished precious and semi-precious stones for the treatment and re-import as per customs rules and regulations. In case of re-export, the exporter shall be entitled for duty drawback as per rules. 4.52 Re-import of rejected Jewellery Gems Jewellery exporters shall be allowed to re-import rejected precious metal jewellery as per paragraph 4.91 of Handbook of Procedures. 4.53 Export and import on consignment basis Gems Jewellery exporters shall be allowed to export and import diamond, gemstones jewellery on consignment basis as per Handbook of Procedures and Customs Rules and Regulations. SCHEME FOR REMISSION OF DUTIES AND TAXES ON EXPORTED PRODUCTS (RoDTEP) 21 [4.54 Scheme Objective and Operating Principles i. The Scheme s objective is to refund, currently un-refunded: a. Duties/taxes/levies, at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and b. Such indirect Duties/ taxes/levies in respect of distribution of exported product. ii. The rebate under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be dependent on the realization of export proceeds at the time of issue of rebate. However, adequate safeguards to avoid any misuse on account of non-realization and other systemic improvements as in operation under Drawback Scheme, IGST and other GST refunds relating to exports would also be applicable for claims made under the RoDTEP Scheme. ix. Mechanism of Issuance of Rebate: Scheme would be implemented through end to end digitization of issuance of rebate amount in the form of a transferable duty credit/electronic scrip (e-scrip), which will be maintained in an electronic ledger by the Central Board of Indirect Taxes Customs (CBIC). Necessary rules and procedure regarding grant of RoDTEP claim under the Scheme and implementation issues including manner of application, time period for application and other matters including export realization, export documentation, sampling procedures, record keeping etc. would be notified by the CBIC, Department of Revenue on an IT enabled platform with a view to end to end digitization. Necessary provisions for recovery of rebate amount where foreign exchange is not realized, suspension/withholding of RoDTEP in case of frauds and m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d based on the recommendations of the RoDTEP Committee. 4.56 Nature of Rebate: The e-scrips would be used only for payment of duty of Customs leviable under the First Schedule to the Customs Tariff Act, 1975 viz. Basic Customs Duty. 4.57 Monitoring, Audit and Risk Management System: For the purposes of audit and verification, the exporter would be required to keep records substantiating claims made under the Scheme. A monitoring and audit mechanism with an IT based Risk Management System (RMS) would be put in place by the CBIC, Department of Revenue to physically verify the records of the exporters on sample basis. Sample cases for physical verification will be drawn objectively by the RMS, based on risk and other relevant parameters. 4.57A For a broad level monitoring, an Output Outcome framework will be maintained and monitored at regular intervals. 4.58 Residual Issues: Residual issues related to the Scheme arising subsequently shall be considered by an Inter-Ministerial Committee, named as RODTEP Policy Committee (RPC) chaired by DGFT (comprising members of Department of Commerce and Department of Revenue), whose decisions would be binding. 4.59 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation for physical exports are also exempt from whole of the integrated tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may be provided in the notification issued by Department of Revenue, and such imports shall be subject to pre-import condition. Imports against Advance Authorisations for physical exports are exempted from Integrated Tax and Compensation Cess upto 6 [ 31.03.2019 ] only. 10. Omitted vide Notification No. 53/2015-20 dated 10-01-2019 before it was read as jurisdictional Customs Authority 11. Substituted vide Notification No. 57/2015-20 dated 20-03-2019 before it was read as 31.03.2019 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 020 dated 06-10-2020 19. Inserted vide Notification No. 38/2015-2020 dated 06-10-2020 20. Substituted vide Notification No. 60/2015-2020 dated 31-03-2021 before it was read as 14 [ 31.03.2021 ] 21. Inserted Vide Notification No. 19/2015-2020, Dated 17-08-2021 . 22. Substituted vide Notification No. 33/2015-2020 dated 28-09-2021 before it was read as 20 [ 30.09.2021 ] 23. Substituted vide Notification No. 42/2015-2020 Dated 08-11-2021 before it was read as (3) International Institute of Diamond Grading Research India Pvt. Ltd., Surat, Gujarat, India. 24. Substituted vide NOTIFICATION No. 66/2015-20 dated 01-04-2022 before it was read as, 22 [ 31.03.2022 ] 25. Substituted vide Notification No. 43/2015-2020 dated 09-11-2022 before it was read as, (i) Export proceeds shall be realized in freely convertible currency except otherwise specified. Provisions regarding realisation and non realisation of export proceeds are given in paragraph 2.52, 2.53 and 2.54 of FTP. 26. Substituted vide Notification No. 47/2015-2020 dated 07-12-2022 w.e.f. 15-12-2022 before it was read as, The Appendix 4R containing the eligible RoD ..... X X X X Extracts X X X X X X X X Extracts X X X X
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