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Circular No. 13 /2020-Customs
F.No.605/04/2020-DBK (Vol.2)
Government of India
Ministry of Finance, Department of Revenue
Central Board of Indirect Taxes & Customs
Drawback Division
Dated 19" February, 2020
To
All Principal Chief Commissioners/Chief Commissioners
of Customs/Customs (Preventive)/Customs & Central Tax and
All Principal Directors General/Directors General
under CBIC
Madam/Sir,
Subject: - Schemes for Rebate of State and Central Taxes and Levies (ROSCTL) and Additional
Ad-hoc Incentive for export of garments and made-ups.
As you are aware, Government had notified the scheme for Rebate of State Levies
(RoSL) to mitigate the incidence of State VAT and other State taxes on export of garments and
made-ups (falling under Chapters 61, 62 and 63 of AIR schedule of duty drawback). In this
regard, Board’s Circulars No. 43/2016-Customs dated 31.08.2016 and No. 8/2017-Customs
dated 20.03.2017 refer.
1.1 As certain State and Central levies remained unrebated in the export of garments and
made-ups, Ministry of Textiles (MoT) vide notification No. 14/26/2016-IT (Vol.Il) dated
07.03.2019 notified the scheme, namely, Rebate of State and Central Taxes and Levies (RoSCTL)
to rebate the incidence of various State as well as Central taxes / levies suffered on export of
garments and made-ups. MoT has also notified the rates of rebate under RoSCTL scheme vide
notification No. 14/26/2016-IT (Vol.Il) dated 08.03.2019. Following the discontinuation of RoSL
scheme and introduction of the RoSCTL scheme w.e.f. 07.03.2019, the Board had issued
Circular No. 10/2019-Customs dated 12.03.2019 for guidance of field formations and the trade.
In continuation of MoT’s aforesaid notification dated 07.03.2019, MoT's Notification No
14/26/2016-IT(Vol.Il)(Part Il) dated 02.05.2019 elaborated on the nature of rebate, mechanism
of issue of scrips, over-claim/ claim based on mis-declaration and procedure for recovery under
RoSCTL scheme.

1.2 Further, it is to inform that DGFT vide their Public Notice (PN) No. 58/2015-20 dated
29.01.2020 has withdrawn the benefit under Merchandise Exports from India Scheme (MEIS)
for items falling under Chapters 61, 62 and 63 w.e.f. 07.03.2019, i.e. the date of introduction of
RoSCTL scheme.
1.3 Further, upon withdrawal of MEIS benefit for garments and made-ups (falling under
Chapters 61, 62 and 63), with a view to compensate exporters affected under the RoSCTL
scheme when compared with the benefit under erstwhile RoSL + MEIS, Government vide MoT’s
notification no. 14/26/2016-IT/Vol. II dated 14.01.2020 has notified the scheme for Additional
Ad-hoc Incentive of upto 1% of FoB value to be given to such exports of garments and made-
ups.
1.4 Under their said PN dated 29.01.2020, DGFT has revised paragraphs 4.95 and 4.96 of
Handbook of Procedures (HBP) to provide for procedure to apply for incentive, recovery
mechanism etc. under ROSCTL and Additional Ad-hoc Incentive schemes.
1.5 Copies of the above-cited notifications of MoT are available on egazette.nic.in. DGFT’s
PNs are available on their website dgft.gov.in. These may be perused for further details of the
respective schemes.
2s It may be noted that under the erstwhile RoSL scheme that was in operation till
06.03.2019, the rebate was provided in exporter’s bank account based on budgetary allocation
of MoT. However, under the RoSCTL and Additional Ad-hoc Incentive schemes, the rebate will
be granted by DGFT in the form of electronic duty credit scrips similar to the scrips issued
under MEIS. The benefit under the two schemes will be given in single electronic scrip to be
utilised for payment of duties of Customs and Central Excise. The scrips issued under the
schemes will be freely transferable. The procedure regarding use of electronic scrips was
provided in Board’s Circular No. 11/2019-Customs dated 09.04.2019. The benefit of RoSCTL
scheme shall be available for export of garments and made-ups with Let Export Order (LEO)
dates from 07.03.2019 to 31.03.2020, while for Additional Ad-hoc Incentive scheme, the
benefit shall be available for exports with LEO dates from 07.03.2019 to 31.12.2019.
3. In pursuance of the above referred developments, it is informed that Government has
notified the use of scrips for payment of specified duties of Customs under the RoSCTL and
Additional Ad-hoc Incentive schemes vide Notification No. 13/2020 -Customs dated
14.02.2020. Similarly, Notification No. 1/2020 —Central Excise dated 14.02.2020 has been

issued which provides for use of scrips for payment of duties of Central Excise for clearance of
goods specified in the Fourth Schedule to the Central Excise Act, 1944. These notifications may
be seen for further details. Systems Directorate in CBIC will also issue a suitable advisory in the
matter.
4. Suitable Public Notice and Standing Order should be issued for guidance of the trade
and officers. Any difficulty faced should be immediately brought to the notice of the Board.
Yours faithfully,
(Atreyee Dev Roy)
OSD (Drawback)
Tel. 23341480