Schemes for Rebate of State and Central Taxes and Levies (RoSCTL) & Additional Ad-hoc Incentive for export of garments and made-ups

Circular No.ES/240/2019-20                                              20^th February, 2020

To:  Members of the Council                                                                                     

Sub: Schemes for Rebate of State and Central Taxes and Levies (RoSCTL) & Additional Ad-hoc Incentive for export of garments and made-ups

Dear Member,

Your kind attention is invited to CBIC’s Circular No. 13/2020- Customs dated 19^th February, 2020 on the above subject.

Brief on Rebate of State Levies (RoSL) – (Old Scheme)

• Notified to reduce the incidence of State VAT & other State taxes on export of garments and made-ups

• Chapters 61, 62 and 63 of AIR schedule of duty drawback

• Refer CBIC’s Circular Nos. 43/2016-Customs dated 31^st August, 2016 and 8/2017-Customs dated 20^th March, 2017.

Brief on Rebate of State and Central Taxes and Levies (RoSCTL) – (New Scheme)

• Notified the new scheme, since certain State & Central levies still remained unrebated in the export of garments & made-ups

• Refer Ministry of Textiles Notification No. 14/26/2016-IT (Vol II) dated 7^th March, 2019.

• The rates of rebate under RoSCTL scheme were notified vide Notification No. 14/26/2016-IT (Vol.11) dated 8^th March, 2019.  

• Thereafter, Ministry of Textiles issued Notification No 14/26/2016-IT(Vol.11)(Part II) dated 2^nd May, 2019 to elaborate on the nature of rebate, mechanism of issue of scrips, over-claim/ claim based on mis-declaration and procedure for recovery under RoSCTL scheme.

• DGFT vide Public Notice No. 58/2015-20 dated 29^th January, 2020 has informed about the withdrawal of MEIS benefits for items falling under Chapters 61, 62 and 63 w.e.f. 7^th March, 2019.

• Paragraphs 4.95 and 4.96 under HBP, 2015–20 were revised by DGFT to provide for procedure to apply for incentive, recovery mechanism etc. under RoSCTL and Additional Ad-hoc Incentive schemes.

• Upon withdrawal of MEIS benefit for garments and made-ups, with a view to compensate exporters affected under RoSCTL scheme when compared with the benefit under erstwhile RoSL + MEIS, Ministry of Textiles vide Notification No. 14/26/2016-IT/Vol. II dated 14^th January, 2020 had notified the scheme for Additional Ad-hoc Incentive of upto 1% of FoB value to be given to such exports of garments & made-ups.

Please make a note of the following details–

• RoSCTL Scheme shall remain in force up to 31^st March, 2020.

• Under the RoSCTL & Additional Ad-hoc Incentive schemes, the rebate will be granted by DGFT in the form of electronic duty credit scrips similar to the scrips issued under MEIS.

• The benefit under the two schemes will be given in single electronic scrip to be utilised for payment of duties of Customs and Central Excise.

• The scrips issued under the schemes will be freely transferable. The procedure regarding use of electronic scrips is given in Board’s Circular No. 11/2019-Customs dated 9^th April, 2019.

• The benefits of RoSCTL scheme shall be available for export of garments and made-ups with Let Export Order (LEO) dates from 7^th March, 2019 to 31^st March, 2020 while benefits of Additional Ad-hoc Incentive scheme shall be available for exports with LEO dates from 7^th March, 2019 to 31^st  December, 2019.

• The use of scrips for payment of specified duties of Customs under the RoSCTL & Additional Ad-hoc Incentive schemes has been notified vide CBIC’s Notification No. 13/2020–Customs dated 14^th February, 2020. Similarly, Notification No. 1/2020-Central Excise dated 14^th February, 2020 has been issued which provides for use of scrips for payment of duties of Central Excise for clearance of goods

Members may kindly make a note of the above details.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR