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TMI BlogDUTY EXEMPTION /REMISSION SCHEMESX X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 4.04 Advance Authorisation for Spices Duty free import of spices cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndition 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 going vessel / aircraft, subject to condition that there is specific Standard Input Output Norms in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hapter-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 allowance for wastage). In case of local procurement under invalidation/ARO, the inputs shall be procured prior to manufacture of export item and shall be physicall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 resultant product shall be permitted duty free to the extent of 10% of CIF value of Authorisation. 4.11 Ineligible categories of import on Self Declaration basis (a) Import of following products shall not be permissible on selfdeclaration basis: (i) All vegetable / edible oils classified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me 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[Imports under Advance Authorisation are exempted from payment 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) and (g) of FTP will not be exempted from pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 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 against ARO or Invalidation letter. STEs are also allowed to sell goods on High Sea Sale basis to holders of Advance Authorisation / DFIA holder. STEs are also permitted to issue "No Objection Certificate(NOC)" for import by Advance Authorisation / DFIA holder. Authorisation Holder would be required to file Quarterly Returns of imports effected against such NOC to concerned STE and STE would submit hal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 under Advance Authorisation shall be as prescribed in Handbook of Procedures. 4.23 Deleted 4.24 Re-import of exported goods under Duty Exemption / Remission Scheme Goods exported under Advance Authorisation/ Duty Free Import Authorisation may be re-imported in same or substantially same form subject to such conditions as may be specified by Department of Revenue. Authorisation holder shall also inform about such re-importation to the Regional Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 Shipping Bill / Bill of Export / Tax invoice for supply prescribed under GST rules . Only such inputs may be permitted for import in the authorisation in proportion to the quantity of these inputs actually used/consumed in production, within overall quantity against such generic input/alternative input. (v) In addition, if in any SION, a single quantity has been indicated against a number of inputs (more than one input), then quantities of such inputs to be permitted for import shall be in proportion to the quantity of these inputs actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 export order before effecting export. iv) Distinction must be made between a religious idol and simply moulded gold article/ idol. v) Exports may be allowed only by actual manufacturers of such idols. The Findings like posts, push backs, locks which help in collating the jewellery pieces together, containing gold of 3 carats and above up to a maximum limit of 22 carats] (ii) Silver jewellery including partly processed jewellery, silverware, silver strips and articles including medallions and coins (excluding legal tender coins and any engineering goods) containing more than 50% silver by weight; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 import of consumables as given above shall be filed online to the concerned Regional Authority in ANF 4H. 4.37 Advance Authorisation for Precious Metals (a) Advance Authorisation shall be granted on pre-import basis with 'Actual User' condition for duty free (excluding Integrated Tax and Compensation cess leviable under Section 3(7) and 3(9) of Customs Tariff Act)import of: (i) Gold of fineness not less than 0.995 and mountings, sockets, frames and findings of 8 carats and above; (ii) Silver of fineness not less than 0.995 and mountings, sockets, frames and findings containing more than 50% silver by weight; (iii) Platinum of fineness not less than 0.90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Import of Diamonds for Certification / Grading & Re- export Following agencies are permitted to import diamonds to their laboratories without any import duty, for the purpose of certification / grading reports, with a condition that the same should be re-exported with the certification/grading reports, as per the procedure laid down in Hand Book of Procedures: (1) Gemological Institute of America (GIA), Mumbai, Maharashtra. (2) Indian Diamond Institute, Surat, Gujarat, India. 23[(3) De Beers India Private Ltd, Surat, Gujarat, India.] (4) HRD Diamond Institute Private Limited, Mumbai, Maharashtra, India (5) International Gemological Institute (India) Pvt. Ltd, Bandra Kurla Complex, Mumbai 27[(6) Gemological Science International (GSI) Pvt. Ltd., Mumbai, Maharashtra, India.] 4.43 Export of Cut & Polis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 jewellery parcel shall not exceed 20 kgs by weight. 4.49 Private / Public Bonded Warehouse Private / Public Bonded Warehouses may be set up in SEZ/DTA for import and re-export of cut and polished diamonds, cut and polished coloured gemstones, uncut & unset precious & semi-precious stones, subject to achievement of minimum value addition of 5% by DTA units. 4.49(A) Import, auction/sale and re-export of rough diamonds by entities, as notified vide RBI Notification 116 of 1st April, 2014, as amended from time to time, on consignment or outright basis, will be permitted in Special Notified Zone (SNZ) administered by the operator of SNZ, under supervision of Customs. The procedure of import, auction/ sale and reexport of rough diamonds (unsold) would be as specified by CBEC. 4.50 Diamond & Jewellery Dollar Accounts (a) Firms and companies dealing in purchase / sale of rough or cut a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct, 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 Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited. iii. The determination of ceiling rates under the Scheme will be done by a Committee in the Department of Revenue/Drawback Division with suitable representation of the DoC/DGFT, line ministries and experts, on the sectors prioritized by Department of Commerce and Department of Revenue. iv. The overall budget/outlay for the RoDTEP Scheme would be finalized by the Ministry of Finance in consultation with Department of Commerce (DoC), taking into account all relevant factors. v. The Scheme will operate in a Budgetary framework for each financial year and necessary calibrations and revisions shall be made to the Scheme benefits, as and when required, so that the projected remissions for each financial year are managed within the approved Budget of the Scheme. No provision for remission of arrears or contingent liabilities is permissible under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment 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 misuse, as well as imposition of penalty will also be built suitably by CBIC. x. The Scheme will take effect for exports from 1st January, 2021. However for exports made by categories under Para 4.55 (x), (xi) and (xii), the implementation date will be decided later as per provisions of Para 4.55B 4.55 Ineligible Supplies/ Items/Categories under the Scheme: The following categories of exports/ exporters shall not be eligible for rebate under RoDTEP Scheme: i. Export of imported goods covered under paragraph 2.46 of FTP ii. Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India iii. Export products which are subject to Minimum export price or export duty iv. Products which are restricted for export under Schedule-2 of Export Policy in ITC (HS) v. Products which are prohibited for export under Schedule-2 of Export Policy in ITC (HS). vi. Deemed Exports vii. Supplies of prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, 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 26[The revised RoDTEP Appendix 4R containing the eligible RoDTEP export items, rates and per unit value caps, wherever applicable is available at the DGFT portal www.dgft.gov.in under the link 'Regulatory Updates >RoDTEP'.]] ******************** Notes:- 1. Substituted vide Notification No. 57/2015-2020 - Dated 28-03-2018, before it was read as, "(c) Duty Free Import Authorisation Scheme shall not be available for import of raw sugar." 2. Substituted vide Notification No. 57/2015-2020 - Dated 28-03-2018, before it was read as, "(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." 3. Substituted vide Notification No. 13/2015-2020 dated 20-06-2018 before it was read as, "Separate DFIA shall be issued for each SION and each port." 4. Substituted vide Notification No. 13/2015-2020 dated 20-06 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Inserted vide Notification No: 59/2015-2020 dated 29-03-2019 13. Substituted vide Notification No. 16/2015-2020 dated 02-09-2019 before it was read as "(i) Exporter of gold / silver / platinum jewellery and articles thereof including mountings and findings may obtain gold / silver / platinum as an input for export product from Nominated Agency, in advance or as replenishment after export in accordance with the procedure specified in this behalf. No replenishment of the precious metal shall be available to the exporter/manufacturer where the exporter/manufacturer avails any of the benefits in respect of exported product. a. CENVAT Credit is availed on inputs or services by the manufacturer. b. Finished goods stage rebate is availed under Notification No 19/2004-CE (NT) dated 06.09.2004. c. Input stage rebate is availed in respect of duty of excise paid on the precious metal bar or articles of precious metal under Notification No 21/2004-CE(NT) dated 06.09.2004. d. Precious metal or articles of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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