[vc_row][vc_column][vc_empty_space][/vc_column][/vc_row][vc_row disable_element=”yes”][vc_column][vc_custom_heading text=”Frequently Asked Questions” font_container=”tag:h2|text_align:center” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:400%20regular%3A400%3Anormal”][vc_empty_space][vc_toggle title=”What are Duty Credit Scrips?”]Duty Credit Scrips (DCS)is an export promotion benefit offered by the Government of India under the Foreign Trade Policy (FTP) 2015-20. As with other export benefits, the aim is to incentivize exporters so that they boost the inflow of foreign exchange to India. A DCS provides tax incentives on exports, which can be used by exporters to set off their import duties.

FTP 2015-20 lays down the features and the provisions related to DCS. The scheme is implemented and administrated by the Government’s Ministry of Commerce and Industry, in association with the Directorate General of Foreign Trade (DGFT).[/vc_toggle][vc_toggle title=”What are the uses of Duty Credit Scrips?”]

  • DCS can be used by an exporter to pay their tax liabilities. It can be used against tax liabilities arising out of basic customs duty, additional customs duty, safeguard duty, transitional specific safeguard duty, and anti-dumping duty. DCS can be transferred to others, but it cannot be used to set off GST, compensation cess, and education cess;
  • From the date of issue, a DCS remains valid for 12 months;
  • If the exporter doesn’t have a foreseeable use of the DCS within the validity period, they can always transfer it to another person who can use it against their own outstanding tax liability.

[/vc_toggle][vc_toggle title=”How to Sell Duty Credit Scrips?”]

  • The credit script is sold when the exporter has no use of the incentives;
  • There is no formal market for this type of transfer and in the case of peer-to-peer (P2P) transfers, DCS is generally sold at a discount.

[/vc_toggle][vc_toggle title=”Types of Duty Credit Scrips”]

  • RoDTEP – Remission of Duties or Taxes on Export Products
  • RoSCTL – Rebate of State & Central Taxes and Levies
  • MEIS – Merchandise Exports from India Scheme
  • SEIS – Service Exports from India Scheme

[/vc_toggle][vc_toggle title=”What is the RoDTEP Scheme?”]

  • The Remission of Duties or Taxes on Export Products (RoDTEP) is an export promotion scheme that provides reimbursements of any tax, duty, or levy paid by the exporters for goods exported from India. The scheme came into effect in January 2021;The RoDTEP scheme has replaced the Merchandise Exports from India Scheme (MEIS) as the latter wasn’t compliant with the World Trade Organisation’s (WTO) trade norms.

[/vc_toggle][vc_toggle title=”Who is Eligible for the RoDTEP Scheme?”]

  • The RoDTEP scheme which has been in effect from January 1, 2021, applies to only those goods and not services that are manufactured locally and exported from India;
  • Re-exported goods i.e. goods that are originally produced outside India but then are transported via India, are not covered under the scheme;
  • Manufacturer exporters, as well as merchant exportersor traders, can avail of the benefits of the RoDTEP scheme;
  • There is no maximum or minimum turnover threshold to claim the benefits under the scheme;
  • The scheme also covers the goods that are exported through e-commerce platforms via courier services.

[/vc_toggle][vc_toggle title=”How does RoDTEP Scheme Work?”]

    • Create RoDTEP Credit Ledger

    To avail of the benefits provided under the RoDTEP scheme, exporters have to first create an electronic credit ledger by logging on to the ICEGate portal (www.icegate.gov.in) using their class 3 Digital Signature Certificate (DSC). In case an exporter is using the portal for the first time, they need to register themselves and then log in using the credentials.

    Once the user has successfully logged onto the portal, they can select the ‘RoDTEP option’ from the scheme name drop-down menu and create a credit ledger account.

    • Declaration in the Shipping Bills

    Any exporter who wants to claim the benefits provided under the RoDTEP scheme must declare ‘RoDTEPY’ on that particular shipping bill, and ‘RoDTEPN’ in case they don’t want to avail the benefits. If a shipping bill does not specify either of these details, then, automatically, the exporter will not get any reimbursement.

    • Claim Processing & Scroll Generation

    Once the Export General Manifest (EGM) has been filed by the carrier, the shipping bills are are either sent to an officer for intervention or directly to the respective scroll queues. Once the scrolls are generated, the amount is available in the form of credits on the ICEGate portal.

    • Generating & Using Scrips

    The credits on the portal can be converted into credit scrips by the exporter. Every user is given a unique Scrip ID.

[/vc_toggle][vc_toggle title=”What is the RoSCTL Scheme?”]Rebate of State & Central Taxes and Levies (RoSCTL) Scheme is an export incentive in the form of transferable and sellable duty credit scrips offered on the basis of the FOB value of the export. It replaces the Rebate of State Levies (RoSL) scheme, a monetary incentive scheme under which Customs would deposit the rebate directly into the exporter’s bank account.

The Ministry of Textiles notified the introduction of RoSCTL in March 2019. It was followed by the release of the RoSCTL rate list and a CBIC notification on the scheme. The benefits of Rebate of State Levies RoSCTL are available to exporters of readymade garments and made-ups for now.[/vc_toggle][vc_toggle title=”What is the MEIS Scheme?”]MEIS was introduced by the government in the Foreign Trade Policy (FTP) in 2015 as an incentive scheme to offset infrastructural inefficiencies and the associated costs. Under MEIS, the incentive percentage was around 2%, 3% or 5% of the realised FOB value of exports as per shipping bills. The incentive was given in the form of physical, transferrable duty credit scrips to the exporters;

In 2019, the scheme was declared as a ‘export contingent reward scheme’ by the WTO, and thus in violation of its norms; The scheme was then scrapped and replaced by the RoDTEP scheme.[/vc_toggle][vc_toggle title=”What is the SEIS Scheme?”]Under the framework of the Service Exports from India Scheme (SEIS Scheme), under implementation since 01.04.2015, service exporters for eligible service categories, are granted benefits in the nature of transferable Duty Credit Scrips as a percentage of Net Foreign Exchange earned on export of the eligible services in a financial year. The Duty Credit Scrips can be used Payment of Basic Customs Duty and certain other duties as listed in para 3.02 of FTP 2015-20. Negative Net Foreign Exchange earnings (NFE) makes the entitlement under zero for the financial year.[/vc_toggle][vc_toggle title=”Why should I buy EXIM scrips?”]Exim scrips are typically sold at a discount. Say the face value of a scrip is Rs.100 and it is being sold at a price of say Rs.90. You can now utilise it at customs while importing goods at a 100% face value of Rs.100 and save Rs.10. [Note: Prices quoted above are for illustration purpose only. Actual prices offered for the scrips are dynamic and are based on technical and market factors.[/vc_toggle][vc_toggle title=”Can I return, unutilised/balance value in an EXIM scrip?”]No, you cannot return unutilized/balance value. However you can use the balance value to offset customs duty on other imports.[/vc_toggle][vc_toggle title=”Am I allowed to sell RODTEP or ROSCTL Exim scrips?”]Yes. Scrips are freely transferable[/vc_toggle][vc_toggle title=”Is GST chargeable on sale of RODTEP/ROSCTL?”]GST charged on the sale of RODTEP/ROSCTL is ZERO percent.[/vc_toggle][vc_toggle title=”Are there any hidden fees that I will have to bear?”]The buying and selling prices that are quoted are all exclusive of charges. Since the transactions are happening between buyer and seller and dutyexchange.com is acting as a platform, a nominal fee would be charged which will be communicated before the execution of the transaction.[/vc_toggle][vc_toggle title=”How do you ensure genuineness of an EXIM scrip?”]Every scrip that is traded on dutyexchange.com goes through thorough inspection and check at various levels. Dutyexchange.com does not trade in a scrip that fails a check at any level. Also, a proper documentation would be between buyer and seller and in future for any legal hassles arising out of these scrips, the seller shall be held responsible.[/vc_toggle][/vc_column][/vc_row][vc_row][vc_column][vc_custom_heading text=”Frequently Asked Questions” font_container=”tag:h2|text_align:center” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:400%20regular%3A400%3Anormal”][vc_raw_html css=”.vc_custom_1688634619246{padding-bottom: 150px !important;}”]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[/vc_raw_html][/vc_column][/vc_row]