DGFT has issued a Trade Notice to inform that the Interest Equalization Scheme (IES) which is extended upto 30.06.2024 by RBI will have cap of Rs. 2.50 Cr per IEC imposed till 30.06.2024 for the quarter starting from 01.04.2024
Trade Notice No. 40/2023-24 Dated 20.03.2024 can be downloaded from the link below:
https://content.dgft.gov.in/Website/dgftprod/a70c5d16-a6c6-4a04-ae8f-437d73a979c7/Trade%20Notice%20No%2040.pdf
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In its continuous efforts to simply, automate and ease of doing business, DGFT has now added a new sub para under para 4.14 HBP 2023.
The new Sub Para (iii) of 4.14 states:
Ad-hoc Input Output Norms may also be decided in a rule-based IT environment without reference to Norms Committee. However, a certain percentage of cases as flagged by the RMS may be referred to NORMS Committee for validation/review.
This will ease the process of Ad-hoc Norms and also reduce the timeline for the same.
The Public Notice also further added new sub para 4.06(vii) which allowed Norms Committee to recommend cases which come for Ad-hoc Norms to be notified as SION on case-to-case basis.
Both the above provisions will really help exporters and smoothen the process of Ad-hoc Norms related activities under Advance Authorisation.
The Public Notice No. 51/2023 Dated 14.03.2024 can be downloaded from link below:
https://content.dgft.gov.in/Website/dgftprod/482e2b8e-a091-4266-b347-1646c08071f2/Public%20Notice%20English.pdf
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India had been working on a Trade and Economic Partnership Agreement (TEPA) with EFTA countries comprising Switzerland, Iceland, Norway & Liechtenstein.
On 10th March 2024, the India-European Free Trade Association signed the Trade and Economic Partnership Agreement (TEPA) in a signing ceremony in New Delhi.
Image Source: @Twitter Handle of Shri. Piyush Goyalji
TEPA is a modern and ambitious Trade Agreement. For the first time, India is signing FTA with four developed nations – an important economic bloc in Europe. For the first time in history of FTAs, binding commitment of $100 bn investment and 1 million direct jobs in the next 15 years has been given. The agreement will give a boost to Make in India and provide opportunities to young & talented workforce. The FTA will provide a window to Indian exporters to access large European and global markets.
The agreement has 14 chapters and focus is on market access to goods, rules of origin, trade facilitation, trade remedies, technical barrier to trade etc…
EFTA is an important regional group, with several growing opportunities for enhancing international trade in goods and services. Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.
The key highlights of the agreement are:
1. For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs.
2. EFTA is offering 92.2% of its tariff lines which covers 99.6% of India’s exports. The EFTA’s
market access offer covers 100% of non-agri products and tariff concession on Processed
Agricultural Products (PAP)
3. India is offering 82.7% of its tariff lines which covers 95.3% of EFTA exports of which more than 80% import is Gold. The effective duty on Gold remains untouched.
4. India has offered 105 sub-sectors to the EFTA and secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland.
5. TEPA has provisions for Mutual Recognition Agreements in Professional Services like nursing, chartered accountants, architects etc.
The Prime Minister has also shared his delight on the agreement and he tweeted:
“Delighted by the signing of the India-EFTA Trade & Economic Partnership Agreement. This landmark pact underlines our commitment to boosting economic progress and create opportunities for our youth. The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations.”
Image Source: Official Twitter handle of PM – Shri. Narendra Modiji
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Finally, the long pending demand from the exporters and in recommendation of RoDTEP committee Report, the DGFT amends the Ineligible Supplies / items/Categories under RoDTEP Scheme there by allowing RoDTEP benefit to exports made by Advance Authorisation holders, EOUs and SEZ Units.
The DGFT Notification No. 70/2023 Dated 08th March 2024 issued in these respected amended certain provisions of the RoDTEP Scheme.
1. Sr. No. viii, x, xi and xii of Para 4.55 of FTP has been deleted w.e.f 11.03.2024
2. Sr. No. vii of Para 4.54 has been amended to added the rates of RoDTEP notified under Appendix 4RE (for exports of goods manufactured by AA holders, EOUs and SEZ Units)
3. A New Para 4.59A has been added which allows RoDTEP on eligible items at the rates and per unit value cap as applicable under Appendix 4RE as available on DGFT Portal (www.dgft.gov.in). Click here to download Appendix 4RE.
4. The benefit of RoDTEP for exports done by Advance Authorsation Holders(except deemed exports) and EOUs will be from 11.03.2024 till 30.09.2024 only.
5. The benefit of RoDTEP for exports done by SEZ units will be once IT Integration of SEZ units is done with ICEGATE System. This same is expected from 01.04.2024. The benefit will be available from date of implementation till 30.09.2024 only.
6. RoDTEP Rates for 25 HS Codes are revised to manage the budgetary outlay for RoDTEP benefits for export of goods manufactured by Advance Authorsation Holders, EOUs and SEZ Units. Click here to download the List: 25 Items Revised Appendix 4R
7. The RoDTEP Scheme is now extended to exports till 30.09.2024
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In the step towards digital and providing online facility to Exporter / Importers, with regards to entering and uploading details and documents in respect of Advance Authorisation and Export Promotion Capital Goods (EPCG) Scheme, The JNCH has developed a new system called Export Monitoring & Analysis System (X-MAS)
The Export Monitoring & Analysis System (X-MAS) will be used for
a. Registration of Licenses
b. Submission of Installation Certificate for EPCG
c. Submission of First Block under EPCG
d. Submission of EODC and documents for Cancellation of Licenses
e. Check status on the registered licenses.
Public Notice No. 02/2024 (Click here to download) dated 11.01.2024 issued in giving detail guidance on the various process and steps for the each of the above activity.
The Link to the X-MAS Software can be accessed with JNCH own website (www.jawaharcustoms.gov.in) or directly from the link:
https://epsmmc-licenses.jnch.in/LicenseRegistration
All authorisations holders having their authorisations with JNCH must examine the details and follow the process for quick and online tracking of their authorisations and compliances.
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The Directorate General of Systems and Data Management (ICEGATE) Customs has issued a latest Advisory No. 06/2021 Dated 05.01.2024 regarding the New Module implemented on the ICEGATE 2.0 website for the creation and transfer of E-Scrips for Export Incentives under RoDTEP & ROSCTL Scheme.
The Advisory which can be downloaded from the link below and available on the ICEGATE Website provides detailed process and procedure related to the creation, record and transfer of the e-scrips under both the schemes on the New Platform.
https://www.icegate.gov.in/guidelines/advisory-e-scrip-avail-export-incentive-schemes-rosctl-rodtep
The Key Points highlighted in the Advisory are:
1. For Chapter 61,62, and 63 RoSCTL Scheme would continue to be given till 31.12.2024 instead of RoDTEP
2. The Functionality of RoDTEP and RoSCTL is now available in the ICEGATE 2.0 Portal which can be accessed only by IECs who have registered on ICEGATE with DSC.
3. The Provisions of RoDEP are as per notified Notifications of the department and availability of the budget.
4. The RoDTEP Scheme which is effective of 01.01.2021 is captured in the shipping bill and the benefit is calculated at the ad valorem rate and per unit cap in the system by DBK Officers along with Drawback. (The Rates are notified by DGFT under Appendix 4R)
5. It must noted that the benefit will be calculated in the shipping bill with the actual ad valorem rates but not exceeding per unit value caps if any, on value equal to declared export FOB value of the said goods or up to 1.5 times the market price of the said goods, whichever is less.
6. The owner of the scrip (either the original exporter beneficiary or any other IEC to whom the scrip was transferred on ICEGATE portal) can use these duty scrips in the Bill of Entry for the payment of the duty of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) i.e., Basic Customs Duty (BCD) only by giving the details of the scrips in the license table of the Bill of Entry.
The scheme code to be used in Bill of Entry for these scrips would be “RD” along with Notification No as “RODTEP” and The scheme code to be used in Bill of Entry for these scrips would be “RS” along with Notification No as “ROSCTL”.
Exporters must take the note of the above new facility for the creation and usage on the RoDTEP and RoSCTL e-Scrip Process.
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In continuation to the earlier Trade Notice, DGFT has now further extended the transition period for mandatory filing of applications for Non – Preferential Certificate of Origin (e-CoO) via Common Digital Platform (coo.dgft.gov.in) until
31st December 2024
The Exporters will have option to apply the CoO with the respective Agencies as notified under Appendix 2E of FTP in manual /paper mode as well.
However, exporters are encouraged to apply online eCoO and all the required Manual and FAQs are made available on the portal.
Exporters may refer to the Trade Notice No. 36/2023-24 for further details
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The CBIC in amdendment to the previously notified All Industry Rate Duty Drawback has notifed revised rates vide Notification No. 77/2023- Customs (N.T) Dated 20th Oct, 2023.
Following are some key points which may be noted:
1.The tariff items and descriptions of goods in the said Schedule are aligned with the tariff items and descriptions of goods in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) at the four-digit level only. The descriptions of goods given at the six digit or eight digits in the said Schedule are in several cases not aligned with the descriptions of goods given in the First Schedule to the Customs Tariff Act, 1975
2.The figures shown in column (4) in the said Schedule refer to the rate of drawback expressed as a percentage of the free on board value or the rate per unit quantity of the export goods, as the case may be.
3. The figures shown in column (5) in the said Schedule refer to the maximum amount of drawback that can be availed of per unit specified in column (3).
4. Drawback at the rates specified in the said Schedule shall be applicable only if the procedural requirements for claiming drawback as specified in rule 12, 13 and 14 of the said rules, unless otherwise relaxed by the competent authority, are satisfied.
5. The Notification and rates will come into force on 30th October 2023.
Exporters my refer to the Notification from the link below:
https://taxinformation.cbic.gov.in/view-pdf/1009920/ENG/Notifications
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The RoDTEP Committee which has been constituted to review RoDTEP (Remission of Duties and Taxes on Exported Product) Rates are seeking data from exporters to review the exsisting rates of RoDTEP.
Exporters can refer to the online orders and data form available on CBIC website
cbic.gov.in —–>Taxpayer and Stakeholder Assitance —–> Public Information —–> RoDTEP Committee —–> 2023
or via can via the link below:
https://old.cbic.gov.in/htdocs-cbec/home_links/RoDTEP-Committee-2023
The Last date to submit the inforation to the RoDTEP Committee in the designated formats is 30th November 2023.
Exporters who are of the view that their RoDTEP Rates are to be revised must used the opportnuity and submit the details and data at the earliest.
DGFT Trade Notice on the above can be downloaded from link here
https://content.dgft.gov.in/Website/dgftprod/e008c2ad-f142-4972-9dbd-5720a7492e81/Trade%20Notice%20No%2030-2023-24.pdf
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