Monday, 4 October 2021

CBIC specifies the mechanism for issuance of RoDTEP scrips

 

In the recent Circular No. 23/2021-Customs dated September 30, 2021, wherein the Central Board of Indirect Taxes and Customs (‘CBIC’) has specified the mechanism for issuance of e-scrips under RoDTEP scheme.

Mechanism

·                An exporter will claim the incentive in shipping bill/bill of export at item level.

·                Customs Systems Directorate will initiate the process of grant of RoDTEP benefit based on risk evaluation method. This is similar to processing of Drawback claims.

·                A scroll will be generated having information of the shipping bill and the amount of duty scrip allowed.

·                The exporter has the option to generate e-scrips within one year of generation of scroll. Else, the available duty credits in each scroll shall be combined Customs station-wise and sent by the Customs System to the e-ledger of the said exporter as an e-scrip.

·                The exporter has the option of combining duty credits available in a scroll or a number of scrolls at the particular customs station of export and generate an e-scrip in the exporter’s electronic ledger.

·                Notable that the e-scrip is valid for a period of 1 year from its generation in the ledger. Post such 1 year, any duty credit shall lapse.

·                E-scrips shall be freely transferrable in full i.e. no part transfer is allowed. Further, the validity of aforesaid 1 year shall not change on account of any transfer.

·                Each e-scrip will carry a unique ID and date of its creation. All transactions made in the ledger of an IEC through credit, debit or transfer of duty credit shall be visible to the said IEC holder and Customs. Once an e-scrip is generated in the ledger, it will be registered automatically with the Customs station of export.

 

| Remarks

·                It is true that RoDTEP rates are peanuts. However, the above mechanism, prima facie, is looking smoother than the MEIS wherein the exporters had to apply through DGFT portal and wait for months to get it.

·                The RoDTEP mechanism ensures security of the e-scrips unlike manual processing of MEIS couple of years ago wherein many fraudulent transactions took place.

 

It is also expected that the above mechanism will be able to automatically cater to situations of amendment in shipping bills/bill of exports and consequent claims thereof. Currently, for MEIS, the amendment of shipping bill is a huge task for exporters

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