PXL/HO/Cir-078/2019-20 Dt: 08.11.2019
Subject: Inviting data/information for the new proposed Scheme for Remission of Duties and Taxes on Exported products (RoDTEP) for Products pertaining to ITC (HS) Codes under Chapter(s) 29 & 30.
We would like to inform our member-exporters that the Office of Directorate General of Foreign Trade (DGFT) is inviting data/ information for the new proposed Scheme for Remission of Duties and Taxes on Exported products (RoDTEP) for Products pertaining to ITC (HS) Codes under Chapter(s) 29 & 30.
We understand that this new scheme will substitute the existing export promotion schemes which are non-compliant with WTO.
The Government is now contemplating to formulate a new Scheme to cover all export sectors under a framework so that refund of these un-refunded taxes or duties/ levies, not exempted or rebated at present by any other mechanism. The contours of the proposed new Scheme for Remission of Duties and Taxes on Exported products (RoDTEP) are being detailed out and will be notified separately after approval of the competent authority.
2. In the interim, to determine and recommend the rates and value caps for various items in different export sectors under the proposed scheme for Remission of Duties and Taxes on Exported Products (RoDTEP), it has been decided that the existing Sectoral Norms Committees structure in the DGFT Headquarters, will also function as Sectoral RoDTEP Committees (SRCs).
3(A) Therefore, the concerned Export Promotion Councils (EPC)/Commodity Boards/Trade and Industry Association/Chambers of Commerce are advised to collect necessary data in prescribed formats from member-exporters. The concerned EPCs are the nodal agencies to interact with (SRCs). The trade bodies are requested to provide the data to the concerned export Promotion Councils, with respect to un-rebated taxes/ duties / levies used in the manufacture of export product(s) in the prescribed format, which is attached with this circular. The concerned EPCs would in turn consolidate the data product-wise, based on ITC-HS code, and forward such consolidated data along-with all supporting submissions by other exporters/manufacturers and Industry associations, for each product in the prescribed Proforma to this committee for further processing.
3(B) There are 3 (three) formats/ Proforma (R1, R2, R3_link enclosed) which are required to be filled separately for each export product by a manufacturing/ exporting unit. The EPCs/ Industry Bodies are requested to compile information received from member exporters/firms and submit it to concerned SRCs. SRCs would in turn submit the complied data along with supporting documents collected to the Jurisdictional Sectoral RoDTEP Committee(s) in DGFT Headquarter, along with their recommendations, in a separate report. Recommendations made by the EPCs/Associations /Trade Bodies should mention the HS-Code wise incidence of taxes/ duties/ levies in percentage terms with respect to FOB Value of each product as per Unit of Measurement (UQC) and should be supported with relevant notifications/ circulars/ justifications on tax incidence which are at present not refunded by any other mechanism.
RODTEP Board Sheet
4 Member-Exporters may note the following while submission of information in the specified formats:-
a) We request our member-exporters to provide Data mandatorily based on the exports made during the period January to June 2019.
b) Information may kindly be submitted by manufacturers/ manufacturer exporters for every export product individually in a separate file/document in all three Proforma/ formats i.e. R1, R2 and R3. Data relating to DTA Unit and / or SEZ unit/ EOU/ FTWZ/ Warehouse under section 65 of the Customs Act, as the case may be, needs to be filed separately for each such unit.
c) A list of indicative taxes which should be counted for estimating the non reimbursed/ non refunded tax incidence is annexed as ANNEXURE 1 with the prescribed formats. Generally used UQC Codes have also been annexed as ANNEXURE 2 for reference. 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 are to be counted while calculating the tax incidence on the exported product.
d) The incidence of Central Excise duty/customs duty suffered on account of petroleum products being used as inputs (raw materials) in the manufacturing process and the incidence of GST for any product should not be included for calculation of total incidence of duties.
e) Data provided should be from manufacturers/manufacturer exporters and it should be properly scrutinized and certified by the manufacturer/ manufacturer exporter and their Chartered Accountant/Cost Accountant.
f) While forwarding the recommendations on each HS code/export product, the EPCs/ Industry bodies need to ensure that information from at least five units/ firms are included so as to be representative of the industry. The units should have a representation of the small, medium as well as large manufacturer exporters.
g) The data should be supported by relevant documents such as sample Shipping Bills of export and other relevant other documents forming the basis of calculation, such as Mandi Tax rate circular, Electricity Duty circular of the respective state and should have proper justifications for recommended tax incidence.
h) The data provided should pertain to only those manufacturers/units who agree to have their records and production processes inspected by the Government for the purpose of verification. Verification of data/ processes would be undertaken by DGFT, if required.
5 We request our member-exporters to submit the information related to ITC (HS) codes under Chapters 29 & 30 urgently to Pharmexcil by email at firstname.lastname@example.org with a copy marked to email@example.com , firstname.lastname@example.org and email@example.com.
The hard copy of the information may be submitted to the Council at New India Chamber, 306, B- wing, Cross road A, MIDC, Andheri (E), Mumbai - 400093, with a copy to Convenor - Sectoral RoDTEP Committee 2 at Room No 404, office of DGFT, Udyog Bhavan, H Wing, Maulana Azad Road, New Delhi - 110011.
In view of the importance and urgency of the matter, member-exporters may submit the information urgently by 15th November 2019.
Encl: 3 (three) formats/ Proforma (R1, R2, R3) along with ANNEXURE -1 & ANNEXURE- 2