[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRYOF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION No. 25/2023-Customs (N.T.)
New Delhi, the 1st April, 2023

G.S.R. ……. (E) - In exercise of the powers conferred by sub-section (1) of section 51B of the Customs
Act, 1962 (52 of 1962) (hereinafter referred to as the said Act), the Central Government, hereby notifies
the manner of issue of duty credit for goods exported under the Scheme for Rebate of State and Central
Taxes and Levies (hereinafter referred to as the Scheme), subject to such conditions and restrictions as
specified herein, in accordance with Government of India, Ministry of Textiles’ notification No.
12015/11/2020-TTP dated the 13th August, 2021.

2. Such duty credit shall be subject to the following conditions, namely:-

(1) that the duty credit is issued -

(a) against exports of garments and made-ups (hereinafter referred to as the said goods) and
their respective rate and cap as listed in Schedules 1, 2, 3 and 4 to the notification of
Government of India, Ministry of Textiles’ notification No. 14/26/2016-IT (Vol.II), dated the
8th March, 2019 for the Scheme:
Provided that the value of the said goods for calculation of duty credit to be allowed
under the Scheme shall be the declared export Free on Board (FoB) value of the said goods or
up to 1.5 times the market price of the said goods, whichever is less;

(b) against claim of duty credit under the Scheme made by an exporter by providing the
appropriate declaration at the item level in the shipping bill or bill of export in the customs
automated system;

(c) against the shipping bill or bill of export, presented under section 50 of the said Act where
the order permitting clearance and loading of goods for exportation under section 51 of the said
Act has been made;

(d) after the claim is allowed by Customs upon necessary checks, including on the basis of risk
evaluation through appropriate selection criteria, and after filing of export manifest or export
report;

(e) in accordance with any rules or regulations issued in relation to duty credit, e-scrip or
electronic duty credit ledger;

(2) that such duty credit shall be used for payment of the duty of customs leviable under the First
Schedule to the Customs Tariff Act, 1975 (51 of 1975) on goods when imported into India;

(3) that the export categories or sectors listed in Table annexed hereto shall not be eligible for duty
credit under the Scheme;

(4) that the duty credit allowed under the Scheme, against export of goods notified vide notification No.
14/26/2016-IT (Vol.II), dated the 8
th March, 2019 for the Scheme, shall be subject to realisation of sale
proceeds in respect of such goods in India within the period allowed under the Foreign Exchange
Management Act, 1999 (42 of 1999), failing which such duty credit shall be deemed to be ineligible;

(5) that the imports and exports are undertaken through the seaports, airports or through the inland
container depots or through the land customs stations which allow the bill of entry and shipping bill or
bill of export to be presented and processed electronically on the customs automated system;

(6) that the exporter has realised the sale proceeds against export of goods made earlier by the said
exporter where the period allowed for realisation, including any extension of the said period by the
Reserve Bank of India, has expired:
Provided that duty credit shall be issued by Customs in excess of the ineligible amount of duty
credit pertaining to the unrealised portion of sale proceeds against export of goods made earlier:
Provided further that if the Principal Commissioner of Customs or Commissioner of Customs
has reason to believe, on the basis of risk evaluation or on the basis of enquiry, that the claim of duty
credit made by an exporter on export goods may not be bona fide, he may direct, for reasons to be
recorded in writing, to allow duty credit after realisation of sale proceeds of such exports;

(7) that duty credit under the Scheme for exports made to Nepal, Bhutan and Myanmar shall be allowed
only upon realisation of sale proceeds against irrevocable letters of credit in freely convertible currency
established by importers in Nepal, Bhutan and Myanmar in favour of Indian exporters for the value of
such goods.

3. Cancellation of duty credit.- (1) Where a person contravenes any of the provisions of the said Act
or any other law for the time being in force or the rules or regulations made thereunder in relation to
exports to which the duty credit relates, or in relation to the e-scrip, the Principal Commissioner of
Customs or Commissioner of Customs having jurisdiction over the customs station of registration of the
e-scrip may, after enquiry, pass an order to cancel the said duty credit or e-scrip.

(2) Where the e-scrip is so cancelled, the duty credit amount in the said e-scrip shall be deemed never to
have been allowed and the proper officer of Customs shall proceed to recover the duty credit amount
used in such e-scrip or transferred from such e-scrip.

(3) The proper officer of Customs may, without prejudice to any other action that may be taken under
the said Act or any other law for the time being in force, suspend the operation of the said e-scrip or the
electronic duty credit ledger of such exporter or any duty credit transferred from such e-scrip, during
pendency of the enquiry under sub-para (1).

4. Recovery of amount of duty credit.- (1) Where an amount of duty credit has, for any reason, been
allowed in excess of what the exporter is entitled to, the exporter shall repay the amount so allowed in
excess, himself or on demand by the proper officer, along with interest, at the rate as fixed under section
28AA of the said Act for the purposes of that section, on that portion of duty credit allowed in excess,
which has been used or transferred, and where the exporter fails to repay the amount along with interest,
as applicable, it shall be recovered in the manner provided in section 142 of the said Act.

5. Recovery of amount of duty credit where export proceeds are not realised.- (1) Where an amount
of duty credit has been allowed to an exporter but the sale proceeds in respect of such export goods
have not been realised by the exporter in India within the period allowed under the Foreign Exchange
Management Act, 1999 (42 of 1999), the exporter shall, himself or on demand by the proper officer,
repay the amount of duty credit, along with interest, at the rate as fixed under section 28AA of the said
Act for the purposes of that section, within fifteen days of expiry of the said period.

(2) In case any extension of the said period for realisation of sale proceeds has been given by the
Reserve Bank of India and the exporter produces evidence of such extension to the proper officer, and if
the said sale proceeds are not realised in such extended period, the exporter shall repay the said amount
of duty credit along with the said interest, within fifteen days of expiry of the said period.

(3) If a part of the sale proceeds has been realised, the amount of duty credit to be recovered shall be the
amount equal to that portion of the amount of duty credit allowed which bears the same proportion as
the portion of the sale proceeds not realised bears to the total amount of sale proceeds.

(4) Where the exporter fails to repay the duty credit amount within the said period of fifteen days, the
said duty credit shall be deemed never to have been allowed and it shall be recovered, along with the
said interest, in the manner as provided in section 142 of the said Act.

6. During the pendency of any recovery, as provided in paras 4 and 5, no further duty credit, on any
subsequent exports, shall be allowed to such exporter till the time such recovery is made and any
unutilised duty credit with the exporter shall be suspended pending such recovery.
Explanation – For the purposes of this notification, -

(a) “claim” means a claim of duty credit under the Scheme made by an exporter in the shipping bill or
bill of export by providing the appropriate declaration at the item level in the said shipping bill or bill of
export in the customs automated system;

(b) “duty credit” means the amount of credit of duty allowed by Customs against a claim under the
Scheme;

(c) “electronic duty credit ledger” means the ledger in the customs automated system relating to a
person who is the recipient of duty credit or to person to whom the duty credit is transferred;

(d) “e-scrip” means the scrip, created in the ledger for duty credit, as mentioned in Explanation 1 of
section 28AAA of the said Act;

(e) “export manifest” or “export report” means the reference to the terms used in section 41 of the said
Act;

(f) “Foreign Trade Policy" means the Foreign Trade Policy, 2023, published by the Government of
India in the Ministry of Commerce and Industry, vide notification No. 01/2023, dated the 31st March,
2023;

(g) “garments and made-ups” shall have the same meaning as assigned to them in the Government of
India, Ministry of Textiles’ notification No. 12015/11/2020-TTP, dated the 13th August, 2021 notifying
the continuation of Scheme for Rebate of State and Central Taxes and Levies on Export of
Apparel/Garments and Made-ups (RoSCTL);

(h) “proper officer” means Deputy Commissioner or Assistant Commissioner of Customs

.TABLE

  [F. No. 605/10/2022-DBK]
(Dhananjay Singh)
Under Secretary.