CBIC Notifies Exemption of Customs Duty against Scrips Issued under RoSCTL Scheme

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The Central Board of Indirect Taxes & Customs (“CBIC”) has notified regarding exemption of duties of Customs on goods when imported in India against duty paid scrips (“said scrip”) vide Notification No 13/2020 – Customs dated February 14th, 2020 issued under the Rebate of State & Central Taxes and Levies (“RoSCTL”) scheme in accordance with paragraph 4.01(c) of the Foreign Trade Policy read with paragraphs 4.95 and 4.96 of the Handbook of Procedures from –

(a) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (“Customs Tariff Act”); and

(b) the whole of additional duty leviable thereon under sub sections (1), (3) and (5) of section 3 of the said Customs Tariff Act.

Provided that the said scrip, against which goods when imported into India are exempted from duties mentioned in clauses (a) and (b) above, may include duty credit provided under the Additional Ad Hoc Incentive in terms of paragraphs 4.95 and 4.96 of the Handbook of Procedures.

The exemption shall be subject to the following conditions –

  1. That the duty credit in the said scrip is issued –
    1. Against export of garments and made-ups (“said goods”) and their respective rates and cap as listed in Schedules 1, 2, 3 and 4 to the notification of Government of India, Ministry of Textiles (“MoT”) notified vide Notification No. 14/26/2016-IT (Vol.II), dated March 8th, 2019 for the RoSCTL scheme:

Provided that duty credit under the Additional Ad Hoc Incentive is issued in terms of paragraphs 4.95 and 4.96 of the Handbook of Procedures

  1. Against export of said goods made in terms of paragraph 3.05 of the Foreign Trade Policy;
  2. Against export of the said goods under the RoSCTL scheme where the order permitting clearance & loading of goods for exportation under section 51 of the said Act has been made on or after the March 7th, 2019 and till March 31st, 2020:

Provided that in case of Additional Ad Hoc Incentive, order permitting clearance and loading of goods for exportation under section 51 of the said Act has been made on or after the March 7th, 2019 and till December 31st, 2019;

  1. That the export categories or sectors listed in Table annexed hereto shall not be counted for calculation of export performance or for computation of entitlement under the RoSCTL scheme;
  2. That the imports & exports are undertaken through the seaports, airports or through the inland container depots or through the land customs stations as mentioned in Table 2 annexed to the Notification of the Government of India, Ministry of Finance, Department of Revenue No. 16/2015- Customs, dated the April 1st, 2015, published vide number G.S.R. 252(E), dated the April 1st, 2015, as amended:

Provided that the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, may within his jurisdiction, by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permit import & export through any other seaport, airport, inland container depot or through any land customs station within his jurisdiction:

Provided further that the exports of said goods transacted through e-commerce platform subject to the items listed in Appendix 3C of Appendices and Aayat Niryat Forms of the Foreign Trade Policy are undertaken either through international courier terminals or through such foreign post offices, as notified by the Central Government;

  1. That the said scrip is registered with the Customs Authority at the port of registration specified on the said scrip;
  2. That the said scrip is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods & the proper officer of customs after taking into account the debits already made under this exemption and debits made under the Notification of Government of India, Ministry of Finance, Department of Revenue, No. 1/2020- Central Excise, dated the February 14th, 2020 shall ensure the debit of the duties leviable on the goods, but for this exemption;
  3. That the said scrip and goods imported against it shall be freely transferable;
  4. That where the importer does not claim exemption from the additional duty of customs leviable under sub sections (1), (3) and (5) of section 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs;
  5. That the importer shall be entitled to avail of the drawback of the duty of customs leviable under the First Schedule to the said Customs Tariff Act against the amount debited in the said scrip;
  6. That the importer shall be entitled to avail drawback or CENVAT credit of additional duty leviable under sub sections (1), (3) and (5) of section 3 of the said Customs Tariff Act against the amount debited in the said scrip;

Read more at: http://www.cbic.gov.in/resources/htdocs-cbec/customs/cs-act/notifications/notfns-2020/cs-tarr2020/cs13-2020.pdf

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