RoDTEP Codes = Customs'? HSN? What's the issue?

RoDTEP Codes = Customs' HSN? What's the issue?

Amid faltering exports, the department of commerce expanded the scope of the export boosting scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), to include iron & steel, chemicals, and pharmaceuticals.

In this regard, Referring to amended Appendix-4R issued through DGFT Notification No. 47/ 2015-2020 dated December 07, 2022, allowing RoDTEP benefits for additional export sectors/items falling in chapters 28, 29, 30, and 73.

Further, After the 7th edition of the international HSN code system, which was rolled out in late 2021. Apropos to that, India announced several significant changes in the classification of goods under the India Customs Tariff Act.?

Due to these multiple changes, there is an issue has arisen. As there should be alignment between Custom HSN Codes and RoDTEP Codes but due to the dynamic changes, there are few mismatches between both of them, the exporters are facing issues in claiming the same in Shipping Bills.

For Example

  1. "Ephedrine Alkaloid"?bearing HSN Code?29394110,?is at?S.No. 9891?in the RoDTEP rate schedule.
  2. But, In the revised Customs Tariff Schedule, the item falls under Ephedrine and its salts at?HSN 29394100.
  3. The items now added in the RoDTEP rate schedule appear to show the HSN of the Customs tariff before its revision through the Finance Act, 2021.
  4. Now there is an adverse anticipation, that one may lose the benefit as the new tariff code?29394100?shows no RoDTEP rate in the ICEGATE system.

In this regard, we at TaxTru are also giving necessary representation to the RoDTEP Committee and the Department of Commerce.

In case anyone facing the alike issue, feel free to write me at [email protected] or +91 9953357999

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