Export of Duty paid goods (foreign origin) under RODTeP

[Robert Kunnel]

Hi,

I need to know if goods (foreign origin) are imported (cleared for Home Consumption - Duty paid) and after a time period to be exported can the Exporter avail RoDTep.

the goods are not covered under the Inelgible category of goods as per the Notification 77/2021-Customs (N.T.)

Kindly note that the goods have suffered import duty.

Sl. No. Export categories or sectors ineligible for duty credit

1. Goods which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC- HS

2. Export of imported goods covered under paragraph 2.46 of Foreign Trade Policy

3. Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India

4. Goods subject to minimum export price or export duty

5. Deemed exports under Foreign Trade Policy

6.Goods manufactured or exported by any of the units situated in Special Economic Zone/ Free Trade Warehousing Zone/ Export Processing Zone

7.Goods manufactured or exported by a unit licensed as hundred per cent Export Oriented Unit

8.Goods exported under Advance Authorisation or Duty Free Import Authorisation issued under the relevant Foreign Trade Policy:

Provided that where exports are made against Special Advance Authorisation issued under paragraph 4.04A of the Foreign Trade Policy 2015-20 in discharge of export obligations in terms of Notification No. 45/2016-Customs, dated the 13th August, 2016, the rates of the RoSCTL Scheme specified in Schedules 3 and 4 to the Ministry of Textiles’ Notification No. 14/26/2016-IT, dated the 8th March, 2019 shall apply.

9.Goods manufactured and supplied by units in Domestic Tariff Area to units in Special Economic Zone/Free Trade Warehousing Zone

10. Goods manufactured in Special Economic Zone/ Free Trade Warehousing Zone/ Export Oriented Unit/ Export Processing Zone and exported through DTA unit

11. Goods manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962)

12. Goods availing the benefit of the Notification No. 32/1997-Customs, dated the 1st April, 1997

13. Goods for which claim of any duty credit is not filed in a shipping bill or bill of export in the customs automated system

14. Goods that have been taken into use after manufacture or reconditioned/ upgraded/ worn/ used clothes.

Please help in understanding.

[Shilpi Jain]

If they are imported on payment of duty and do not fall under restricted category, why is there still a doubt regarding availability of RoDTEP.

Though, some industries were restricted from applying for RoDTEP, like steel, pharma and chemicals.

This restriction is also removed for export from 15th Dec to 30th Sep 23.

[Robert Kunnel]

Thank you for your kind reply.

The FAQ states that only goods of Indian Origin will be allowed RODTEP. However, the Notification [Notification 77/2021-Customs (N.T.)] & [ DGFT Notfn.19/2015-2020 dated 17-08-2021] issued for RoDtep is silent on this and mentions only the Ineligible category. the Customs are not allowing Rodtep on the export of Imported goods and not referring to notification but the FAQ only.

[Raghunandhaanan rvi]

Sir

RoDTEP is scheme to reimburse central and state levies suffered on goods exported which are not claimed.

This scheme is available for export of goods manufactured from India. This scheme not available to foreign origin goods.

Since your product is of foreign origin and is export of imported goods, this scheme not available.

Since you export duty paid imported goods, you are entitle to claim duty drawback under section 74 of CA subject to conditions.

Thanks

[Robert Kunnel]

Thank you sir, for your kind reply.

Here the goods were exported after 2 years hence drawback could not be availed.

However, I would like to state that the scheme objective is to refund currently un-refunded as mentioned in notification. the notification does not say goods of Indian Origin any is allowed. How can an FAQ override the Notification or else there would be no need ot mention about export of goods imported. there is a Circular F.no.605/19/2021-DBK /876-947 dated 28-10-2021 which states; the incidence of duty should be restricted to currently un-refunded (duties/taxes /levies) with illustrative examples which also covers duties not refunded under drawback.

considering this If you could clarify.

[Raghunandhaanan rvi]

Sir,

RoDTEP is not available for the export of imported goods (Para 2.46 of FTP).

Since your export product is an imported item, it falls under the ineligible category.

Further, if your export is beyond two years of importation, you are not entitled to claim a duty drawback. If there is a genuine reason for the delay in the export of these goods, you may represent to the Board to condone the delay in export and to claim duty drawback under Section 74 of the CA 62.

[Robert Kunnel]

Sir, Thanks for your reply.

But As per Para 2.46 it does not cover Goods cleared for home consumption (duty paid).

"Goods to be exported have never been cleared for home consumption"

The goods to be exported is cleared for home consumption and duty has been paid. So as per the same it should be allowed. and that same is not only for Indian manufactured goods.

Right sir

AI Summary

RoDTEP eligibility for exported imported goods: scheme excludes foreign-origin exports; duty drawback may apply instead. The question is whether RoDTEP applies to exported goods of foreign origin imported and cleared for home consumption. The scheme's implementing notifications and the Foreign Trade Policy identify categories of ineligible exports and customs practice and FAQs have treated exported imported goods as excluded. Where RoDTEP is unavailable, exporters may seek duty drawback subject to statutory time limits or make representations to seek condonation for delayed exports.