Indirect Tax

Customs

RoDTEP Scheme extended to Advance Authorization-holders (except deemed exports), EOUs and SEZs

Notification No. 20/2024-Customs (N.T.) dated 11 March 2024 r/w DGFT Notification No.70/2023 dated 8 March 2024 and DGFT Notification No. 74/2023 dated 11 March 2024

The Central Board of Indirect Taxes and Customs (CBIC) has notified that the below export sectors shall now be eligible to avail benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:

  1. Advance Authorization or Duty-Free Import Authorization (AA/DFIA) holders, except Deemed Exports;
  2. Export Oriented Units (EOUs);
  3. Special Economic Zones (SEZs)/Free Trade Warehousing Zone (FTWZs)/ Electronic Hardware Technology Parks (EHTPs)/Bio-Technology Parks (BTPs)/Export Processing Zones.

A revised methodology has been introduced for calculating the duty credit entitlements by considering either the FOB value of declared goods or 1.5 times the market price, whichever is lower. Furthermore, the RoDTEP rates and capping thereof vis-à-vis the aforesaid categories have been prescribed in Appendix 4RE from 11 March 2024 till 30 September 2024 only. Additionally, the existing Appendix 4R (RoDTEP rates and caps schedule) has been revised for 25 HSN Codes.

The extension to SEZ units will take place after IT integration of SEZs with the Customs Automated System (ICEGATE). However, the RoDTEP implementation for exports of products manufactured by AA holders (except Deemed Exports) and EOUs for 166 Tariff lines will come into effect from 1 April 2024 due to requisite technical enablement at ICEGATE.

Specified imports from China PR, USA, Singapore, and other countries to attract ADD; CVD levy on 'pneumatic radial tyres' extended till July 2024

Notification No. 01/2024-Customs (CVD) dated 11 March 2024, Notifications No. 03/2024-Customs (ADD), 04/2024-Customs (ADD), 05/2024-Customs (ADD), 06/2024-Customs (ADD) dated 14 March 2024 and Notification No. 07/2024-Customs (ADD) dated 15 March 2024

The CBIC has notified the levy of Anti-Dumping Duty (ADD) on import of specified items such as Printed Circuit Boards (PCBs), Para-Tertiary Butyl Phenol (PTBP), Ethylene Vinyl Acetate (EVA) Sheet for Solar Module, Self-Adhesive Vinyl (SAV), and Cast Aluminum Alloys from countries like China PR, Singapore, Hong Kong, Korea, the USA for three to five years.

Furthermore, the levy of Countervailing Duty (CVD) on New/Unused Pneumatic Radial Tyres imported from China PR has been extended till 23 July 2024.

Foreign Trade Policy

Advance Authorization-holders, EOUs & SEZs exempted from mandatory QCO compliances

DGFT Notification No. 71/2023 dated 11 March 2024 r/w Public Notice No. 50/2023 dated 11 March 2024

FTP 2023 has been amended to exempt holders of Advance Authorization, EOUs, and SEZs from complying with the mandatory Quality Control Orders (QCOs) for import of inputs. Said exemption will be available for physical exports only, it will not be allowed for deemed exports. The conditions to be fulfilled are as follows:

For Advance Authorizations:

  • The imports will be subject to preimport condition. The inputs will be utilised in manufacturing of the product to be exported under the same authorization.
  • Such exemption will be specifically endorsed on the Advance Authorization upon request of the authorization-holder.
  • Any unutilized imports or the products manufactured with inputs imported without compliance to the mandatory QCOs will not be transferred to DTA even after regularization of export obligation default.
  • In case of unutilised imports, the required procedure of destruction and duty payment with interest needs to be followed.
  • Facility of clubbing shall not be available for these authorizations.
  • No exemption from QCO compliances to imports under DFIA scheme.

For EOUs and SEZs:

  • No DTA clearance of imported inputs or goods manufactured out of such inputs would be allowed.
  • An undertaking to this effect shall be submitted at the time of importation to Customs authorities and the Development Commissioner.

DGFT apprises changes in origin declaration for Self-Certification under the UK DCTS

Trade Notice No. 39/2023-24 dated 18 March 2024

Owing to the replacement of existing origin declaration process by the United Kingdom (UK), the Indian exporters to the UK are required to adhere to the new rules under the UK Developing Countries Trading Scheme (UK DCTS) effective 1 January 2024. Goods that meet the UK DCTS Rules of Origin requirements shall be eligible to claim a concessional rate of import duty for exports to the UK.

Accordingly, the exporters have been directed to use the origin declaration wording under DCTS, in place of origin declaration wording under GSP filled through self-certification.

Tax Street March 2024