Dear all,
In a case where an exporter has exported goods and claimed RoDTEP benefits, and subsequently reimburses a foreign distributor under warranty obligations (without any re-import or change in export realization), is there any requirement to reverse or surrender the proportionate RoDTEP benefit.
RoDTEP Entitlement Not Automatically Reversed for Warranty Reimbursement Without Re-importation; Maintain Records and Seek Clarification If an exporter claimed RoDTEP on goods exported and later reimbursed a foreign distributor under a warranty without re-importation or alteration of the export realisation, the prevailing view is that there is no automatic requirement to reverse the RoDTEP entitlement because the export transaction and realisation remain intact. However, entitlement depends on scheme conditions and supporting records; customs authorities may scrutinise or seek adjustment if reimbursement is treated as an alteration of export value, effective export price, or if scheme eligibility conditions are breached. Maintain documentary proof of the warranty payment and seek specific departmental clarification if exposure is likely. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
