Remission of Duties or Taxes on Export Product :
WTO compliant “RoDTEP scheme”, recently announced by the Government of India, replacing the existing MEIS scheme for exports of goods from India, is now effective from 01.01.2021 with an aim of reimbursement of taxes/ duties/ levies, at the central, state and local level, which are currently not being refunded under any other scheme, but which are incurred in the process of manufacture and distribution of exported products. To get a regular update on this scheme, you may contact us at firstname.lastname@example.org
Duty Drawback under section 75 of the Customs Act scheme provides a refund of basic custom duty paid on Raw Materials & Inputs that have gone in the production of goods for exports. Deemed Exports provision under FTP also provides drawback for deemed export purposes. They are given on the following basis:
All Industry Rate
Government has published drawback rates for several products which are regularly exported through a drawback schedule. Exporters of these products can get the drawback at the prescribed rates from the customs of the port of export.
In case the export product is not covered under the schedule, then the Exporter can file for drawback under the brand rate of fixation to recover the duties actually suffered in the process.
Special Brand Rates
In case the exported product suffered a more import duty then the prescribed rate then special brand rates can be fixed. It is applicable where All Industry rates are available but is less than 4/5th of the actual duties suffered.
Duty Drawback upon 98% of duty paid is available on goods re-exported within a specified time, under Section 74. Duty Drawback at a specified percentage is available for partly used capital goods and re-exported.
Role of Andees Team
It is very important to note in the above process, that foresight and experience can play a big role in not only getting an optimum license issued, but also in monitoring the export obligation and documentation at each point. Further, in case of delay in exports, timely actions can save a lot of problems and liability in future. Finally proper documentation and representation at the time of redemption can ensure a smoother and optimum closure, taking into account other schemes, compliances etc.
Andees team has been assisting clients for the whole process of Rodtep / Drawback for the last more than 20 years. Since the team is Tech-Savvy, we maintained all the data on cloud and give real time update on their work to the client with softwares. Sound knowledge of Policy & Procedures along with a very qualified and experienced team, Andees has handled complicated matters related to Drawback, saving crores for clients that are MNCs, Indian Corporates, or PSUs. While proper planning during the entire life cycle has helped smooth operations, several complicated matters even at the last stage have been saved by Andees team from substantial liabilities.