Additional Ad-Hoc Incentive to Apparel and Made-ups

Circular No. ES/212/2019-20                                             18th January, 2020

To: Members of the Council

Sub.: Additional Ad-Hoc Incentive to Apparel and Made-ups

Dear Member,

As you are aware, in order to rebate all embedded State and Central Taxes and Levies on apparel and made-ups, Ministry of Textiles had earlier notified the scheme for Rebate of State and Central Taxes and Levies (RoSCTL) vide Notification No. 14/26/2016-IT (Vol.II) dated 07th March, 2019 and vide Notification No. 14/26/2016-IT (Vol.II) dated 08th March, 2019, notified the rates under the RoSCTL scheme.

Now, Ministry of Textiles has issued Notification No. F. No. 14/26/2016-IT/VOl. II dated 14th January, 2020 announcing a special one–time additional ad-hoc incentive of upto 1% of FoB value for exports of Apparel and Made- ups to offset the difference between RoSCTL and RoSL + MEIS@4%, from 7th March, 2019 to 31st December, 2019. 

If the RoSCTL benefit between 7th March, 2019 and 31st December, 2019 is lower than the combined incentives under the MEIS and RoSL, the government would provide an additional ad-hoc incentive of upto 1% of FoB value of exported products, with a cap of `600 crore, for this period.

Following are the recommendations of the Expenditure Finance Committee (EFC) during its meeting held on 30th December, 2019 — 

  1. The additional incentive under the scheme would be as per claims from the exporters and the total ad- hoc incentive would not exceed Rs. 600 crore for the period mentioned above. 
  1. Under the scheme, incentive of upto 1% of FOB value for each line in a shipping bill will be provided for those exports of apparel and made-ups which may receive lesser benefits under RoSCTL as against RoSL+ MEIS. 
  1. MEIS stands withdrawn from 07th March, 2019 for Chapters 61, 62 and 63. Department of Commerce may take necessary measures accordingly. Claims already paid to the exporters under MEIS will be suitably adjusted against RoSCTL and recoveries made wherever due. 
  1. Steps will be taken for the validation of claims by DGFT and DoR for correct disbursal of benefits. 
  1. The ad-hoc incentive would be implemented in the form of scrips for which an outlay would need to be provided by Department of Revenue. 

Members may kindly make a note of the above details.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR

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