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Tax Insights
24 September 2021
CBIC notifies Electronic Duty Credit Ledger Regulations, 2021 for credit of duty in CAS
In brief
A provision for Customs Duty credit through an electronic ledger was introduced in the Customs Act, 1962 (Customs Act) last year1. This is in line with the Government of India’s initiative for automation of processes and compliances towards a paperless environment and reduction in the transaction costs for trade.
The issuance of physical copies for authorisation and scrips was also replaced by e-authorisations with the online migration of application modules and their processing by the authorities. The Central Board of Indirect Taxes and Customs (CBIC) has now notified2 Electronic Duty Credit Ledger Regulations, 2021 (Regulations) to operationalise the e-scrips ecosystem under Remission of Duties and Taxes on Exported Products (RoDTEP), Rebate of State and Central Taxes and Levies (RoSCTL) and other such schemes.
In detail
The key features of the notified Regulations are provided below.
• Shipping Bill or Bill of Export filed from 1 January 2021 onwards3 to claim duty credit or benefit under RoDTEP or RoSCTL will be processed by the Customs Automated System (CAS) based on risk evaluation parameters.
• Any claim under RoDTEP or RoSCTL will be allowed in terms of the guidelines of the respective scheme after filing the export manifest or report.
• Once the claim is allowed, a scroll for duty credit will be generated in the CAS for RoDTEP and RoSCTL separately. The details of the relevant Shipping Bill or Bill of Export, duty credit allowed, and date of issuance can be viewed by the exporter on the CAS.
• The exporter will have the option to combine the duty credit under RoDTEP or RoSCTL, allowed against one or more Shipping Bill or Bill of export. This can be done by creating an e-scrip in the ledger, as per the
1 Notified in the Finance Act, 2020
2 Notification No. 75/2021-Customs (N.T.) dated 23 September 2021
3 On or after 1 January 2021
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customs station of export, within one year from the date of generation of the scroll in the CAS.
• In the event of the exporter not using the option of creating an e-scrip within one year, the duty credit in each scroll will be automatically combined customs station-wise by the CAS to create a single e-scrip in the ledger of the exporter.
• Each e-scrip to have a unique identification number and date of creation, and all transactions in the ledger to be undertaken based on the said identification number and date of creation.
• The customs station of export shall be the customs station for the registration of an e-scrip, which will be automatic with no requirement to file a separate application for registration.
• The e-scrip can be used for paying the Basic Customs Duty only and will be valid for one year from the date of creation in the ledger. Any unutilised credit in the e-scrip will lapse at the end of the validity and cannot be re-generated.
• The ledger, including the e-scrip and the transactions made therein, will be visible in the CAS for the user as well as the Customs Authorities.
• Transfer of duty credit in the e-scrip to be allowed within the CAS from the ledger of one Import Export Code holder to another.
• The transfer of duty credit against an e-scrip to be of the entire amount as available, as part transfer will not be permitted. The validity of such transferred e-scrip will not change on account of the transfer.
• The ledger of the transferee, including the e-scrip and the transactions made therein, will be visible in the CAS to the transferee and the Customs Authorities.
• In the event of contravention of any provision of the Customs Act and rules or regulations in relation to exports relating to the duty credit scrips generated, the same can be suspended or cancelled in the ledger as per section 51B of the Customs Act.
The takeaways
In continuation with the ‘turant’ customs initiatives, the CBIC has now notified the Electronic Duty Credit Ledger Regulations, 2021. It will also help trade to effectively avail the benefit and monitor usage and other
compliances relating to the use of the RoDTEP and RoSCTL schemes.
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