Circular No. ES/ 194/2021-22 30th October, 2021
URGENT & IMPORTANT
To: Members of the Council
Sub: Inviting data for determination of RoDTEP rates for Advance Authorization (AA)/ Export Oriented Units (EoUs) / Special Economic Zone (SEZ) exports
As you are aware, the Government had approved the “Remission of Duties and Taxes on Exported Products Scheme (RoDTEP)” for reimbursing taxes and duties, which were not refunded previously to exporters with a view to give boost to the country's decline in export shipments.
In this connection, the Govt. has constituted a RoDTEP Committee vide its Order dated 18th October, 2021 under the Dept. of Revenue for determining the ceiling rates under the RoDTEP Scheme for Advance Authorization (AA)/ Export Oriented Units (EoUs / Special Economic Zone (SEZ) exports. This Committee has already started the exercise and its first meeting was held on 25th October, 2021.
Further, the Central Board of Indirect Taxes and Customs (Drawback Division) has sought data w.r.t. inputs used in the respective export products in the specified Proforma (download) from the members of Trade for determination of RoDTEP rates for Advance Authorization (AA)/ Export Oriented Units (EoUs) / Special Economic Zone (SEZ) exports.
While providing the above data, care should be taken regarding the following aspects –
a) Data provided should be complete for the exports made during the period 01st October, 2019 to 31st March, 2020. For a particular manufactured export item, the details of all input(s) that are used in the manufacture of all types/styles of that particular export item should be indicated.
b) The incidence of duty should be restricted to currently un-refunded (i) duties/taxes/levies at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and (ii) such indirect duties/taxes/levies on distribution of exported product. An illustrative list of various duties/ taxes/ levies that might remain unrefunded is attached as Annexure (download) (given in Sheet 2 of the attachment).
c) It may be ensured that only taxes/levies/duties borne on the exported product which are at present not getting refunded/ reimbursed under any other mechanism such as Duty Drawback, GST refunds, Central/State Govt. exemptions, subsidy, etc. are taken into account while calculating the tax incidence on the export product.
d) Data with regard to most of the relevant AA/ EOU/ SEZ units should be collected. The units should be carefully selected from amongst the small, medium as well as large manufacturer-exporters.
e) Data provided should only be of exports made under Advance Authorization (AA)/ Export Oriented Units (EoUs) / Special Economic Zone (SEZ) and it should be certified by the manufacturer and its Chartered Accountant/ Cost Accountant.
f) Data should be supported by copies of relevant documents such as tax invoices of inputs used, shipping bills of export product, State Govt. notifications regarding taxes/levies like electricity duty, mandi tax etc. In addition to above, a copy of the relevant legislation, notification relating to taxes and exemption etc. should also be supplied along with data.
g) The data must pertain to only those manufacturers/units that are ready to have their records and production processes subjected to inspection by Customs/ Central Excise Dept. if required for the purpose of verifying the correctness of information.
We request our members to kindly send us the details positively on or before 10th November, 2021 at the following emails (email@example.com; firstname.lastname@example.org; email@example.com and firstname.lastname@example.org) for enabling us to consolidate the proposals and submit the same to the Drawback Division for consideration within the specified time.
We solicit your kind support and co-operation in this regard.
Members may kindly make a note of the above and treat this as most urgent.
Encl.: Proforma (download) (Sheet 1) and Annexure (Sheet 2)