Scheme for Rebate of State and Central Taxes and Levies (ROSCTL) and Additional Ad-hoc Incentives for export of garments and made-ups - Customs - PUBLIC NOTICE No. 14/2020

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOM ROUSE: PORT AREA VISAKHAPATNAM - 530 035 F. NO. P3/20/2019-Stats Date: 25.02.2020 PUBLIC NOTICE No. 14/2020 Sub: Scheme for Rebate of State and Central Taxes and Levies (ROSCTL) and Additional Ad-hoc Incentives for export of garments and made-ups - reg. Attention of all exporters/impcrters, concerned stakeholders and the members of Trade is invited to the Board's Circular 13/2020-Customs dated 19.02.2020 on the above mentioned subject. 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). Boards Circular Nos. 43/2016-Customs dated 31.08.2016 and 08/2017- Customs dated 20.03.2017 may be referred on the subject. 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. Il) dated 07.03,2019 notified the scheme , namely, Rebate of State and Central Taxes and Levies (RoSCFL) 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.ll) dated 08.03.2019. Following the discontinuation of ROSL scheme and introduction of RoSCTL scheme w.e.f. 07.03.2019, the Board has issued Circular 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. 14/26/2016IT(Vol.)(Part. II) dated 02.05.2019 elaborated on the nature of rebate, mechanism of issued of scrips, over-claim/ claim based on mis-declaration and procedure for recovery under RoSCTL scheme. 1.2 Further, it is to inform that DGFF vide their Public Notice No. 58/2015-20 dated 29.01.2020 has withdrawn the benefit under Merchandise Exports from India Scheme (METS) for items failing under Chapters 61,62 and 63 w.e.f. 07.03.2019, i.e. the date of introduction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 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. 14/26/2016-1T/vol. 11 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 referred for further details of the respective schemes. 2. It may be noted that under the erstwhile ROSL scheme that was in operation till 06.032019, the rebate was provided in exporter's bank account based on budgetary allocation of MOT. However, under the RoSCTL and Additional Ad-hoc incentives 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) dated from 07.03.2019 to 31.03.2020/ while for Additional Ad-hoc Incentive scheme, the benefit shall be available for exports with LEO dated 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-CentraI 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, 944. These notifications may be seen for further details. 4. Action to be taken in terms of decisions taken in this Public Notice should be considered as Standing Order for the purpose of officers and staff of this Custom House. (Dr. D. K. Srinivas) Pr. Commissioner of Customs