The Central Board of Indirect Taxes & Customs (CBIC) on April 10, 2026, issued a circular clarifying the treatment of remission/rebate under RoDTEP and RoSCTL schemes in cases of short realisation of export proceeds. The clarification was issued in response to representations from trade regarding whether benefits should be calculated on full FOB value without deducting agency commission and bank charges.
It has been clarified that similar to duty drawback provisions, RoDTEP and RoSCTL benefits shall be allowed on full FOB value, provided that deductions such as agency commission and foreign bank charges do not exceed 12.5% of the FOB value. Any amount exceeding this threshold must be deducted for the purpose of calculating benefits.
Further, in cases where export proceeds are not fully realised but compensation is received from ECGC, such compensation shall be treated as realisation of sale proceeds. Accordingly, benefits under RoDTEP and RoSCTL will not be recovered, subject to conditions including write-off approval by RBI and submission of a certificate from the concerned Indian Foreign Mission confirming non-recovery.
[Circular No. 20/2026-Customs]
