The CBIC (Drawback Division) vide Letter no. F.No.605/19/2021-DBK/876-947 dated October 28, 2021 has requested trade bodies to provide data for determination of Remission of Duties and Taxes on Exported Products (RoDTEP) ceiling rates for Advance Authorization (AA)/ Export Oriented Unit (EoU)/ Special Economic Zone (SEZ) exports.
Government of India vide Order dated October 18, 2021 (copy enclosed as Annexure A) has constituted a Committee for determination of ceiling rates for RoDTEP for AA/EoU/SEZ exports.
RoDTEP Committee has since started the exercise and held its first meeting on October 25, 2021.
In this connection, Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/Chambers of Commerce are requested to provide data w.r.t. inputs used in the respective export products in the specified Proforma (enclosed as Annexure B).
While providing the above data, care should be taken regarding the following aspects —
(a) Data provided should be complete for the exports made during the period October 01, 2019 to March 31, 2020. For a particular manufactured export item, the details of all input(s) that are used in the manufacture of all types/styles of that particular export item should be indicated.
(b) The incidence of duty should be restricted to currently un-refunded (i) duties/taxes/levies at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and (ii) such indirect duties/taxes/levies on distribution of exported product. An illustrative list of various duties/ taxes/ levies that might remain unrefunded is attached as Annexure C)
(c) 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 such as Duty Drawback, GST refunds, Central/State Govt. exemptions, subsidy, etc. are taken into account while calculating the tax incidence on the export product.
(d) Data with regard to most of the relevant AA/EoU/SEZ units should be collected. The units should be carefully selected from amongst the small, medium as well as large manufacturer exporters.
(e) Data provided should only be of exports made under Advance Authorization (AA)/ Export Oriented Units (EoU)/ Special Economic Zone (SEZ) and it should be certified by the manufacturer and its Chartered Accountant/ Cost Accountant.
(f) The data should be supported by copies of relevant documents such as tax invoices of inputs used, shipping bills of export product, State Govt. notifications regarding taxes/levies like electricity duty, mandi tax etc. In addition to above, a copy of the relevant legislation/notification relating to taxes and exemption etc. should also be supplied along with data.
(g) The data provided should pertain to only those manufacturers/units that are ready to have their records and production processes subjected to inspection by Customs/ Central Excise Department if required for the purpose of verifying the correctness of information.
It is requested that the above information may be sent to Drawback Division within three weeks’ time. Your response may also be sent on E-mails- hasan.ahmed@gov.in & shakti.singh1981@gov.in. For any clarification required in the matter, the undersigned may be contacted.
The Letter can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2021/10/CBIC-letter-no.-F.No_.605192021-DBK876-947-dated-October-28-2021.pdf