DGFT Expands Scope of ‘Screws’ Classification Under RoDTEP Scheme [Read Order]

The Directorate General of Foreign Trade (DGFT) has issued a notification revising the product description for certain types of screws under the RoDTEP scheme to align it with the Customs Tariff classification.

The change was announced by the Ministry of Commerce and Industry and is intended to bring consistency between foreign trade policy and customs laws.

What has changed

• Earlier, the classification covered only screws used in the manufacture of cellular mobile phones
• The revised description now includes all screws and bolts, whether or not they are supplied with nuts or washers
• The update applies to Appendix 4R and 4RE of the Handbook of Procedures under the RoDTEP scheme

Reason behind the move

According to the notification, the amendment has been made to align the description with the First Schedule of the Customs Tariff Act, 1975.

This step ensures that exporters, customs authorities, and policymakers follow a uniform classification system. Such alignment reduces confusion and helps avoid disputes during export documentation and duty remission claims.

Effective date

• The revised classification will be effective from December 15, 2022
• This means the change has retrospective applicability

Impact on exporters

The move is expected to have practical implications for exporters:

• A wider range of products will now fall under the same classification
• Exporters of general screws and bolts may now be eligible under this category for RoDTEP benefits
• It may simplify compliance by removing the need to prove end use in mobile phone manufacturing

Broader classifications generally help reduce ambiguity and administrative burden. However, exporters are advised to review their past and current filings to ensure consistency with the updated description.

Background

The RoDTEP scheme provides refunds of embedded taxes and duties that are not otherwise refunded under any other mechanism. It is a key export promotion measure introduced to boost India’s outbound shipments.

The DGFT issues periodic notifications to correct or update classifications so that they remain in sync with international and domestic tariff standards.

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