This is in continuation of our circular dated 2nd Nov 2021 informing you that Drawback Division, Central Board of Indirect Taxes & Customs, MoF has issued letter dated 28.10.2021 requesting data for determination of Remission of Duties and Taxes on Exported Products (RoDTEP) rates for Advance Authorization (AA)/ Export Oriented Unit (EoU)/ Special Economic Zone (SEZ) exports.
As you are aware, as on date, exports under AA/ EOU etc are not covered under RoDTEP scheme. To the address the concerns of the exporters, Government of India vide Order dated 18.10.2021 has constituted a Committee for determination of ceiling rates for RoDTEP for AA/EoU/SEZ exports. The RoDTEP Committee has since started the exercise and held its first meeting on 25.10.2021.
In this connection, Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/Chambers of Commerce have been requested to provide data w.r.t. inputs used in the respective export products in the specified Pro-forma (enclosed as Annexure B).
While providing the above data, care should be taken regarding the following aspects —
Ø Data provided should be complete for the exports made during the period 01.10.2019 to 31.03.2020. For a particular manufactured export item, the details of all input(s) that are used in the manufacture of all types/styles of that particular export item should be indicated.
Ø The incidence of duty should be restricted to currently un-refunded (i) 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 (ii) such indirect duties/taxes/levies on distribution of exported product. An illustrative list of various duties/ taxes/ levies that might remain un-refunded is attached as Annexure C.
Ø It may be ensured that only taxes/levies/duties borne on the exported product which are at present not getting refunded/reimbursed under any other mechanism such as Duty Drawback, GST refunds, Central/State Govt. exemptions, subsidy, etc. are taken into account while calculating the tax incidence on the export product.
Ø Data with regard to most of the relevantAA/EoU/SEZ units should be collected. The units should be carefully selected from amongst the small, medium as well as large manufacturer exporters.
Ø Data provided should only be of exports made under Advance Authorization (AA)/ Export Oriented Units (EoU)/ Special Economic Zone (SEZ) and it should be certified by the manufacturer and its Chartered Accountant/ Cost Accountant.
Ø The data should be supported by copies of relevant documents such as tax invoices of inputs used, shipping bills of export product, State Govt. notifications regarding taxes/levies like electricity duty, mandi tax etc. In addition to above, a copy of the relevant legislation/notification relating to taxes and exemption etc. should also be supplied along with data.
Ø The data provided should pertain to only those manufacturers/units that are ready to have their records and production processes subjected to inspection by Customs/ Central Excise Department if required for the purpose of verifying the correctness of information.
Members (specially under AA or from EOU/ SEZs) are requested to take note of this communication regarding data for determination of Remission of Duties and Taxes on Exported Products (RoDTEP) rates for Advance Authorization (AA)/ Export Oriented Unit (EoU)/ Special Economic Zone (SEZ) exports. The said DBK letter with Pro-forma is available for download on below link-
Relevant members are once again requested to expedite/ send their submissions in specified formats (complete in all respects) at the earliest to the council (by 16th Nov 2021) on e-mail id’s: firstname.lastname@example.org, email@example.com & firstname.lastname@example.org . The hard copies of the submission may also be sent to our Mumbai Office for submission to DBK Dept in physical form also.
Your timely responses will be appreciated and enable us submit data to DBK Division within timeline of 3 weeks from their letter dated 28th Oct 2021.
Acting Executive Director
encl : 1. RoDTEP for AAEoUSEZ
2. RODTEP FORMAT SEZ-EOU-AA