RoDTEP / Duty Drawback Benefits for Exports to Nepal & Bhutan Should be Governed by FTP or Respective Customs Notifications in Case of Inconsistency?

[Dipika Shetye]

I seek views on an apparent inconsistency between the FTP provisions and the specific Customs NN governing RoDTEP and Duty Drawback for exports to Nepal and Bhutan.

As per the recent FTP Amendment in Para 2.52 and 2.53 of the Foreign Trade Policy (FTP) 2023 - 30/2026-27 - Foreign Trade Policy , the provisions relating to Nepal and Bhutan have been revised. However, I could not find any corresponding amendment in:

• Duty Drawback Notification Goods specified if exported under claim for drawback are likely to be smuggled back into India - Supersession Notification No. 49-Customs (G.S.R. 225), dated the 1st February, 1963 - G.S.R. 1318 - Customs -Tariff
• RoDTEP Notification Manner to issue duty credit for goods exported under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) Notified. - 76/2021 - Customs - Non Tariff

Both of the above notifications contain their own specific conditions for claiming benefits on exports to Nepal and Bhutan.

My query is:

In case of exports to Nepal and Bhutan, should eligibility for Duty Drawback and RoDTEP be determined strictly as per the respective Customs notifications, or can reliance be placed on the amended FTP provisions where the two appear to be inconsistent?

AI Summary

Customs notification conditions govern Duty Drawback and RoDTEP eligibility for Nepal and Bhutan exports despite FTP-permitted INR settlement.
Eligibility for Duty Drawback and RoDTEP on exports to Nepal and Bhutan is governed by the respective Customs notifications where specific conditions differ from amended FTP provisions. INR-denominated settlement permitted under the FTP does not itself confer export-incentive entitlement. Drawback and RoDTEP conditions operate independently under the Customs framework and continue unless the relevant notifications are amended. The FTP governs the permissibility and manner of export and payment, whereas Customs notifications determine admissibility of fiscal benefits.