Rebate of State Levies (ROSL) on Export of made-up articles – Implementation by CBEC

Circular No.ES/349 /2016-17                                                              March 22, 2017

To: Members of the Council

Sub: Rebate of State Levies (ROSL) on Export of made-up articles – Implementation by CBEC

Dear Member,

The Council is glad to inform you that the Central Board of Excise and Customs has issued Circular No. 8/2017- Customs dated 20.03.2017 intimating about the extension of ROSL on garment exports to exports of made-up articles covered under Chapter 63 of the AIR Drawback schedule, and it is provided based on a budgetary allocation of the Ministry of Textiles under a scheme in which the Department of Revenue/CBEC handles disbursement along with the extant Duty Drawback.

In this connection, please refer to our earlier Circular No. ES/ 257/2016-17  dated 07.01.2017 wherein Ministry of Textiles had issued Notification No. 12015/47/2016-IT dated 03.01.2017 for the Scheme for ROSL on export of made-up articles  and Circular No. ES/340/2016-17 dated 16.03.2017   wherein Ministry of Textiles had issued Notification No.12015/47/2016-IT dated 15.03.2017 notifying the rates of rebate in Schedule 3, based on the recommendations of the Drawback Committee.                  

The ROSL scheme is meant for exports of made-up articles as defined in the scheme

• Goods falling under Chapters 63 of the Schedule of All Industry Rates of Drawback.
• But has excluded tariff items 6308, 6309 and 6310 and goods in tariff item 9404 that are excluded from drawback tariff item 6304.
• It is applicable to exports with Let Export Order (LEO) dates from 23.03.2017 onwards.
• Though applicability is for three years, the Central Government can adjust the rates of rebate.

Rates of Rebate (Applicability / Non applicability)

• Accompanied by rebate caps in Rupees/Unit.
• Are on an average basis and determined in a like manner as AIRs of Drawback.
• Are not divisible into any component tax or input.
• Provided as the general rates of rebate (Schedule 3).
• This schedule is based on the extant Schedule of All Industry Rates of Drawback for Chapters 63.
• Not applicable on exports made under Advance Authorization Scheme with claim of duty drawback under Rule 6 of the Drawback Rules.
• The definition of export in ROSL scheme does not cover movement of goods from DTA to SEZ units.

The claim cum declaration of eligibility of the ROSL

• To be made by exporter on drawback exports at item-level.
• The drawback exports (shipping bill or bill of export) may be standalone or in combination with other schemes.

• The scheme codes 60- Drawback & ROSL and 61- EPCG, Drawback & ROSL are applicable for ROSL for madeups.
• The exporter is to declare the same at item level to make claim cum declaration for the rebate.
• For EDI shipping bill, selection of the scheme-code involving ROSL scheme at the time of export shall itself amount to making claim cum declaration of eligibility.
• For EDI shipping bill this shall be the only means to make the claim. If need for manual shipping bill arises, only then the exporter printing the claim cum declaration on the shipping bill shall be accepted. No claim for rebate shall lie except in this manner.

Rebate amount

• It is calculated using the FOB value and the rates and caps of rebate specified in ROSL scheme.
• The rate and cap of rebate for a tariff item as shown in columns (4) and (5), of said Schedule 3 (given below) is used for calculation when shipping bill item has claim for AIR drawback or when the shipping bill item involves export under Rule 7 of Drawback Rules 1995 under claim for Brand Rate of drawback with identifier 9807 followed by tariff item number and suffix “B” of the AIR Drawback Schedule where provisional Drawback of Customs portion is to be paid.

SCHEDULE- 3

“Schedule of ROSL rates for made up textile articles”

Members may  please note that  all the guidelines for ROSL for garments as given in Circular No. 43/2016-Cus  dated 31.08.2016  and the arrangements made by Directorate of Systems and Pr. CCA CBEC in respect of ROSL for garments shall apply mutatis mutandis to ROSL for made ups.

Thanking you,

V. ANIL KUMAR
Executive Director