TaxTMI 
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RoDTEP / Duty Drawback Benefits for Exports to Nepal & Bhutan Should be Governed by FTP or Respective Customs Notifications in Case of Inconsistency?
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....oDTEP / Duty Drawback Benefits for Exports to Nepal & Bhutan Should be Governed by FTP or Respective Customs Notifications in Case of Inconsistency? <br> Query (Issue) Started By: - Dipika Shetye Dated:- 23-8-2026 Customs - Exim - SEZ <br> Got 1 Replies <br> Customs<br> <br> I seek views on an apparent inconsistency between the FTP provisions and the specific Customs NN governing RoDTEP and Duty D....
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....rawback 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 smuggle....
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....d 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 ....
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....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? --Reply By: Sanjeev Agarwal The Reply: In my view, eligibility for Duty Draw....
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....back and RoDTEP for exports to Nepal/Bhutan should presently be determined by the respective Customs notifications. The amended FTP provisions cannot, by themselves, be treated as overriding those conditions. 1. FTP Paras 2.52/2.53 The amendment permits export contracts with Nepal and Bhutan to be denominated and settled in INR. However, Para 2.53's provision granting export benefits against INR ....
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....realisation specifically applies to countries other than Nepal and Bhutan. Therefore, the amendment does not expressly confer a general entitlement to export incentives on Nepal/Bhutan exports merely because payment is received in INR. 2. Duty Drawback The relevant drawback restrictions arise independently under section 76(2) of the Customs Act, 1962 and the corresponding Customs notification. Acc....
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....ordingly, the specific Nepal/Bhutan conditions in that notification continue to govern drawback eligibility. An amendment to FTP under section 5 of the FT(D&R) Act should not ordinarily be regarded as an implied amendment of a notification issued under the Customs Act. 3. RoDTEP The same principle applies to RoDTEP, although there is a stronger argument for harmonisation. Notification 76/2021-Cust....
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....oms (N.T.), issued under section 51B of the Customs Act, contains specific conditions for exports to Nepal/Bhutan, including the prescribed condition regarding realisation against an irrevocable LC in freely convertible currency. Unless that notification is correspondingly amended, I would regard its specific condition as continuing to apply. Conclusion Issue Position INR settlement with Nepal/Bh....
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....utan Permitted subject to FTP/RBI framework Duty Drawback Customs notification governs RoDTEP Notification 76/2021 governs FTP amendment overriding Customs conditions Not a safe position presently Thus, I would not recommend claiming Drawback or RoDTEP contrary to the applicable Customs notification merely by relying on amended Paras 2.52/2.53. For RoDTEP, a reasonably arguable litigation positi....
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....on may exist based on harmonising the later FTP with Notification 76/2021, but that is materially different from saying that the Customs condition has automatically ceased to apply. The fundamental distinction is: FTP may determine whether and how the export/payment is permissible; the Customs notification independently determines whether the statutory fiscal benefit is admissible. <br>***<br> ....
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