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Schemes for Rebate of State and Central Taxes and Levies (RoSCTL) & Additional Ad-hoc Incentive for export of garments and made-ups

ISEPC/Cir-RoDTEP/2019-20                                                                                                                              22nd Feb 2020

 

To All Members of the Council

 

Subject: Schemes for Rebate of State and Central Taxes and Levies (RoSCTL) & Additional Ad-hoc Incentive for export of garments and made-ups

 

Dear Member,

The Silk Council would like to bring to your kind attention to C.B.I.C.’s Circular No. 13/2020- Customs dated 19th February, 2020 on the above subject.

Brief on Rebate of State Levies (RoSL) – (Old Scheme):

a. Notified to reduce the incidence of State VAT & other State taxes on export of garments and made-ups;

b. Chapters 61, 62 and 63 of AIR schedule of duty drawback;

c. Refer CBIC’s Circular Nos. 43/2016-Customs dated 31st August, 2016and8/2017-Customs dated 20th March, 2017;

Brief on Rebate of State and Central Taxes and Levies (RoSCTL) – (New Scheme):

1. Notified the new scheme, since certain State & Central levies still remained unrebated in the export of garments & made-ups;

2. Refer Ministry of Textiles Notification No. 14/26/2016-IT (Vol II) dated 7th March, 2019;

3. The rates of rebate under RoSCTL scheme were notified vide Notification No. 14/26/2016-IT (Vol.11) dated 8th March, 2019;

4. Thereafter, Ministry of Textiles issued Notification No 14/26/2016-IT(Vol.11)(Part II) dated 2nd May, 2019 to elaborate on the nature of rebate, mechanism of issue of scrips, over-claim/ claim based on mis-declaration and procedure for recovery under RoSCTL scheme;

5. DGFT vide Public Notice No. 58/2015-20 dated 29th January, 2020hasinformed about the withdrawal of MEIS benefits for itemsfalling under Chapters 61, 62 and 63 w.e.f. 7th March, 2019;

6. Paragraphs 4.95 and 4.96 under HBP, 2015–20 were revised by DGFT to provide for procedure to apply for incentive, recovery mechanism etc. under RoSCTL and Additional Ad-hoc Incentive schemes;

7. Upon withdrawal of MEIS benefit for garments and made-ups, with a view to compensate exporters affected under RoSCTL scheme when compared with the benefit under erstwhile RoSL + MEIS, Ministry of Textiles vide Notification No. 14/26/2016-IT/Vol. II dated 14th January, 2020 had notified the scheme for Additional Ad-hoc Incentive of upto 1% of FoB value to be given to such exports of garments & made-ups;

Please make a note of the following details:

a. RoSCTL Scheme shall remain in force up to 31st March, 2020;

b. Under the RoSCTL & 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;

c. 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;

d. The scrips issued under the schemes will be freely transferable. The procedure regarding use of electronic scrips is given in Board’s Circular No. 11/2019-Customs dated 9th April, 2019;

e. The benefits of RoSCTL scheme shall be available for export of garments and made-ups with Let Export Order (LEO) dates from 7th March, 2019 to 31st March, 2020 while benefits of Additional Ad-hoc Incentive scheme shall be available for exports with LEO dates from 7th March, 2019 to 31st December, 2019;

f. The use of scrips for payment of specified duties of Customs under the RoSCTL & Additional Ad-hoc Incentive schemes has been notified vide CBIC’s Notification No. 13/2020–Customs dated 14th February, 2020.Similarly,Notification No. 1/2020-Central Excise dated 14thFebruary, 2020hasbeen issued which provides for use of scrips forpayment of duties of Central Excise for clearance of goods;

Members may kindly take a note of the above details.

Thanks n regards,

Sanjeev Kr Sharma

Sr Director – ISEPC

New Delhi, India