by ROSCTL UNVEILED: A BOOST FOR INDIAN GARMENT AND MADE-UP EXPORTERS
The rosctl scheme, introduced by the Indian Government, incentivizes garment and made-up exporters by reimbursing State and Central Taxes and Levies (SCTL) within production costs. Facilitated through transferable duty credit scrips, this scheme offsets future customs duties, enhancing competitiveness. Its goal is to heighten global competitiveness for Indian textiles, lowering production costs and improving cash flow for exporters. The industry has embraced the scheme, amplifying exports and generating employment opportunities. The RoSCTL scheme propels exports, fosters employment, and enhances market competitiveness for Indian textiles.
How to apply for the rosctl scheme?
- To avail of the rosctl scheme, follow these steps:
- Visit the DGFT website.
- Locate and access the ANF 4-R form, which is the application form for the RoSCTL scheme
- Complete the ANF 4-R form with accurate details related to your exports and relevant information.
- Utilize your digital signature to authenticate the filled form.
- You can consolidate up to 50 shipping bills within a single application, streamlining the process and reducing administrative efforts.
- When registering for RoSCTL scrips, observe these guidelines:
- Separate Port Types
Remember not to combine shipments from EDI (Electronic Data Interchange) and non-EDI ports within a single application. During registration, ensure they remain separate entities. Keep them as separate entities during registration.
- Port Selection for EDI Ports
For exports conducted through EDI-enabled ports, the port of registration should be chosen from any ports where the export operations have taken place. Select the appropriate port from which you’ve shipped your goods.
- The DGFT system will electronically approve entitlement per shipping bill basis, encompassing the standard entitlement and any supplementary ad-hoc incentives. This streamlined process ensures efficient approval for RoSCTL benefits.
- Following the endorsement of the ultimate entitlement, the Regional Authority will issue scrips in a digital format, eliminating the need for physical documentation. In adherence to a Risk Management System, RAs will review 2% of the submitted RoSCTL applications weekly. This RMS evaluation will be automatically initiated by the DGFT, enhancing the scrutiny process.
What are the documents needed?
- IEC
A crucial document for the RoSCTL scheme application is the IEC (Importer-Exporter Code). Participation in international trade transactions requires providing this unique code as an essential part of the application process.
- Shipping Bill
Another essential document required for applying to the rosctl scheme is the shipping bill. Shipping bills outline intricate details about the exported goods, their value, and other pertinent data.
- Digital Signature Certificate
This digital credential ensures the authenticity and security of your application by electronically validating your identity and authorizing the submission of the application with legal integrity.
- DGFT registration
You establish your eligibility to participate in export-related schemes and ensure that the RoSCTL program recognizes you as a valid exporter within its framework.
What are the benefits of the rosctl scheme?
- Cost Reduction and Global Competitiveness
The rosctl scheme offers key benefits to exporters, particularly in industries like readymade garments. It reduces high logistics costs by providing rebates on state and central taxes, enhancing the competitiveness of exported products. This encourages global market competition and stimulates economic growth.
- Rebate Application
To avail of the RoSCTL rebate, submit your application using the ANF 4R form with your digital signature. This application is to be directed to the DGFT. Notably, up to 50 shipping bills can be appended to a single application.
- EDI and Non-EDI Port Distinction
EDI (Electronic Data Interchange) and non-EDI port differentiation impact how exports are managed. Non-EDI ports require separate applications for each export, as their processing methods differ from those of EDI port exports, making it impossible to combine them. In contrast, for EDI-enabled ports, the port where electronic data is submitted is also the registration port for the export. This distinction ensures efficient handling of export processes based on the port’s capabilities.
- Online Approval Mechanism
The DGFT utilizes an online system for processing and approving applications, employing an online approval/check mechanism. Depending on the selected option in your application, scrips are either physically delivered or sent through postal means. This approach streamlines the process and provides flexibility for receiving scrips based on your preferences.
What are the following categories of goods not qualified for the RoSCTL scheme?
- Trans-shipment Goods
Trans-shipment goods pass through India to another destination without consumption in transit. The rosctl scheme excludes these goods from rebate benefits, as it supports domestically produced exports. Trans-shipment items must align with the scheme’s objective of aiding domestic production’s international market presence.
- Minimum Support Price and Export Duty Goods
The goal is to avoid situations where the benefits from the RoSCTL scheme overlap with existing policies or taxes. By excluding MSP and export duty goods, the scheme can focus its support on products needing assistance to enhance their international competitiveness. This approach helps streamline incentives, prevent double-dipping of benefits, and maintain the intended economic balance.
- Deemed Goods
Deemed exports are transactions in which goods don’t leave the country physically but receive payment. The rosctl scheme, however, rebates taxes for physically exported goods. Due to this difference, deemed exports aren’t eligible for RoSCTL rebates. The scheme supports direct physical exports.
- Special Economic Zones and Export Processing Zones
Goods that are manufactured or exported from regions situated in SEZ or EPZ are not eligible for the RoSCTL rebate.
- Domestic Tariff Areas to SEZs
Goods manufactured or supplied by units in Domestic Tariff Areas to units in Special Economic Zones are not eligible for the RoSCTL rebate.
- Used Good
Goods that have been taken into use after their manufacturing or after reconditioning used goods are not eligible for the rosctl scheme.
- Duty Credit Claims
The RoSCTL rebate excludes goods that have yet to have a duty credit claim filed in the customs automated system within a shipping bill or a bill of export.
Summary – The rosctl scheme is pivotal in boosting export capabilities and fostering economic vitality. This initiative equips exporters to compete effectively in the global market by alleviating the burden of taxes and levies. Notably, platforms like Amazon Global Selling play a significant role within this scheme, facilitating seamless international trade for businesses of all sizes. As countries strive to expand their export reach, the efforts of platforms like Amazon Global Selling hold the promise of opening new avenues and propelling economic growth on a global scale.
