RoSCTL Scheme: Eligibility, Benefits, and Application Procedure

The RoSCTL scheme gives a monetary incentive to exporters and makes their manufactured products more competitive within the global market. By refunding the taxes and levies incurred by exporters, the scheme reduces their manufacturing costs, which leads to lower prices for the end consumer. This makes Indian products more appealing within the worldwide market and increases their demand.

The RoSCTL scheme is for all the Indian exporters who manufacture and export certain products. The products secured under the scheme incorporate textile and apparel, leather and footwear, handicraft, engineering, and marine products. The scheme applies to products manufactured in special economic zones(SEZs) and sold within the domestic market.

The following are the documents required to apply for the RoSCTL scheme

• Digital Signature Certificate
• Shipping bills
• DGFT registration
• Importer Exporter Code (IEC)
• Valid registration cum member certificate (RCMC)

Duty credit scrip is provided as a rebate under the RoSCTL scheme. These scrips are generated electronically on the customs system, which shall be used for payments of basic customs duty on the import of goods, which are also transferable. The duty credits available in the e-scrip shall be transferred at a time for the entire amount in the said e-scrip to another person and transfer of duty credit in part will not be permitted.

This e-scrip is valid for one year from the date of its creation, and that shall not change on account of the transfer of the e-scrip. All exporters of Apparel, garments, and made-ups manufactured in India are eligible for this scheme, except for those entities, and IECs which are listed in the Denied Entity of the Directorate General of Foreign Trade (DGFT).

List of goods that are not eligible under the RoSCTL scheme:

• Goods which are subject to minimum export price or export duty.
• Deemed exports under Foreign Trade Policy.
• The export of imported goods is covered under paragraph 2.46 of the Foreign Trade Policy.
• Trans-shipment through the country.
• Goods that are restricted for export under Schedule-2 of Export Policy in ITC-HS.
• Importer Exporter Codes (IECs) are listed in the Denied Entry List by the Directorate General of Foreign Trade (DGFT).
• Goods manufactured partly or entirely in a warehouse under section 65 of the Customs Act, 1962.
• Goods produced or supplied by the units in the Domestic Tariff Area to units in the special economic zone/Free trade warehousing Zone.
• Goods that have been used after manufacture or reconditioned/upgraded/worn/used clothes.
• Products of which the duty credit claim isn't recorded in a shipping bill or bill of export within the customs automated system.
• Products manufactured or exported from a business licensed as a hundred percent export arranged under the provision of the Foreign Trade Policy.
• Goods manufactured or exported against Advance Authorisation or Duty-Free Import Authorisation under the Duty Exemption Scheme of the relevant Foreign Trade Policy.
• Goods manufactured or exported by unit located in the Special Economic Zone, Export Processing Zone, and Warehousing Zone.

In conclusion, the RoSCTL scheme has helped Indian exporters compete globally, by offering tax rebates, increased profit margins, and accessibility to markets. The RoSCTL scheme played a pivotal role in fortifying India’s textile and apparel sector, helping in economic growth, and export growth from India. Tempting it may sound but the exporters need to take precautions like the exporters who benefit from the RoSCTL scheme need to retain the proof of receipt of sale proceeds. If an exporter is found to claim the excessive rebate, they will be required to pay the excess rebate to the DGFT, with an interest of 15% per annum from the receipt of the scrip to the payment date. Professional Utilities has a leading consult and experts for the RoSCTL scheme, book a consultation with us to know more.