Notification / Circular No.: Circular No. 20/2026-Customs dated April 10, 2026
Applicable Act / Rule: Customs and Central Excise Duties Drawback Rules, 2017, Foreign Trade Policy, 2023
Representations were received regarding eligibility of RoDTEP and RoSCTL benefits in cases of short realisation of export proceeds. Earlier clarification allowed duty drawback on full FOB value subject to limits on deductions. The issue has been examined in consultation with DGFT and Ministry of Textiles.
Duty drawback is allowed on full FOB value without deducting agency commission and foreign banking charges, subject to a limit of 12.5% of FOB value; excess shall be deducted.
The same treatment shall apply for RoDTEP and RoSCTL benefits.
Compensation from Export Credit Guarantee Corporation (ECGC) for short realisation may be treated as receipt of sale proceeds. Accordingly, remission/rebate under RoDTEP and RoSCTL shall not be recovered where RBI permits write-off and exporter furnishes certificate from concerned Foreign Mission of India confirming non-recovery.
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