The Directorate General of Foreign Trade ( DGFT ), through Trade Notice No. 19/2024-25 dated 4th October 2024, has issued a clarification regarding the requirement of a Registration-Cum-Membership Certificate ( RCMC ) for post-export remission-based schemes under the Foreign Trade Policy ( FTP ) 2023.
It has been clarified that the exporters can claim the post-export remission scheme benefits without RCMC.
Learn with Expert: Tax Audits under Section 44AB – Enroll Now
This clarification addresses confusion within the trade community concerning whether an RCMC is necessary for certain export schemes, particularly the Rebate of State and Central Taxes and Levies (RoSCTL) and the Remission of Duties and Taxes on Export Products (RoDTEP).
As per Para 2.57 of FTP 2023, an RCMC is mandatory for exporters applying for an Authorisation to import/ export under the FTP (except items listed as ‘Restricted’ items in ITC (HS)) or applying for any other benefit or concession under FTP. These above noted measures are distinguished from post-export remission-based schemes.
The schemes like the duty exemption schemes, Rebate of State and Central Taxes and Levies (RoSCTL), Remission of Duties and Taxes on Export Products (RoDTEP) fall under the category of remission based schemes.
Post-export remission-based schemes, such as Duty Drawback, RoSCTL, and RoDTEP, are designed to remit duties or taxes that were levied on exported goods after the export process is complete. The directorate has clarified that these specific schemes do not require exporters to obtain an RCMC in order to claim benefits.
Without the need for an RCMC, exporters participating in schemes like RoSCTL and RoDTEP can avoid unnecessary paperwork and expedite their claims.
Learn with Expert: Tax Audits under Section 44AB – Enroll Now
This clarification not only helps procedures but also ensures that exporters fully understand the specific requirements for each scheme under the FTP 2023.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
