The Central Board of Indirect Taxes and Customs ( CBIC ), vide notification no. 20/2024 –Customs (N.T.) dated 11th March 2024 has announced amendments to Notification No. 24/2023-Customs (N.T.) extending Remission of Duties and Taxes on Exported Products ( RoDTEP ) Support to Exports by Advance Authorisation / EOU. These amendments, made under the powers conferred by sub-section (1) of section 51B of the Customs Act, 1962.
The amendments, outlined in the notification issued by the Government of India, Ministry of Finance (Department of Revenue), dated April 1, 2023, bring about notable changes in the calculation of duty credit for certain export transactions. These changes, detailed within the notification, are aimed at providing greater flexibility and clarity in determining duty credit entitlements for exporters.
Key highlights of the amendments include:
Expansion of Eligible Export Transactions: The amended notification expands the scope of eligible export transactions by including goods notified in Appendix 4R of the Foreign Trade Policy, exports under Advance Authorisation (except Deemed Exports) as notified in Appendix 4RE, and goods manufactured or exported by Export Oriented Units as notified in Appendix 4RE.
Revised Calculation Methodology: The notification introduces a revised methodology for calculating duty credit entitlements. According to the amendment, the value of goods for the calculation of duty credit shall be either the declared export Free on Board (FOB) value or up to 1.5 times the market price of the goods, whichever is less. This provision aims to provide exporters with greater flexibility in availing duty credits while ensuring alignment with market realities.
Clarity in Notification References: The amendments also bring clarity to the notification references, particularly regarding the identification of eligible goods. Sub-clause (4) of clause 2 now specifies that the eligible goods are those notified in Appendix 4R or Appendix 4RE of the Foreign Trade Policy, as applicable, replacing the previous reference to “the Appendix.”
Omission of Certain Entries: The amendments entail the omission of entries related to specific Sl. No’s. 6, 7, 8, and 10 in the TABLE section of the notification.
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