The Director General of Foreign Trade ( DGFT ), vide public notice no. 27/2024-25 dated 23rd October 2024, exercising powers under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy ( FTP ) 2023, has notified the new procedure for the filing of the Annual RoDTEP Return ( ARR ).
This notification, which adds a new Paragraph 4.94 under Chapter 4 of the Handbook of Procedures 2023, mandates exporters claiming RoDTEP benefits to file an Annual RoDTEP Return to ensure compliance and transparency regarding the inputs used in export production and the actual taxes and duties incurred.
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Under this new provision, exporters must file the ARR in the format specified in Appendix-4RR of the Handbook of Procedures, 2023, by 31st March of the subsequent financial year. For example, RoDTEP claims filed for the Financial Year 2023-24 must be submitted by 31st March 2025. Initially, this requirement applies to exporters whose total RoDTEP claims exceed ₹1 crore in a financial year across all 8-digit HS Codes.
Failure to report the ARR will lead to the denial of benefits under the RoDTEP scheme, and further processing of RoDTEP claims will be halted after a grace period of three months (i.e., after 30th June). Exporters who file the ARR late will be subject to a fee of ₹10,000 for filings up to 30th June, while those filing after this date will incur a higher fee of ₹20,000. Upon payment of the applicable composition fee, the processing of RoDTEP scrolls will resume within 45 days, including Shipping Bills that were previously withheld due to non-compliance.
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Exporters are also required to maintain physical or digital records substantiating their duty remission claims for five years, which may be requested by the concerned authorities. The ARR may also be periodically reviewed by the RoDTEP Committee for necessary revisions, including consideration of higher rates where warranted.
In certain cases, the ARR filings may be subject to further scrutiny based on risk-based IT criteria to assess the nature of inputs and the amount of taxes and duties incurred. If excess claims are identified, the exporter will be required to refund or surrender the excess amount. Failure to regularize such claims within a specified timeframe will result in the suspension of further RoDTEP benefits.
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