Your one-stop-shop for Export Incentives & Schemes

Duty Credit Scrips (DCS) can be used to offset Customs Duty on goods and services that are imported. They can also be used to pay Safeguard Duty, anti-dumping Duty and any other customs duty under FTP 2023.

However, they cannot be utilized for payment of GST.

Here are some of the benefits of Duty Credit Scrips:

• Reduces the cost of production for exporters
• Enhances competitiveness of Indian exporters in the global market thereby boosting exports and foreign exchange earnings
• Helps to create more jobs in the export sector, promoting economic growth

• There are a various ways to sell Duty Credit Scrips (DCS). One way is to sell them directly to an Importer. Importers who are looking for a way to reduce their Import Duty obligation may be interested in buying DCS.
• Another way to sell DCS is to sell them through a Broker. Brokers who specialize in DCS trading can help you find buyers at a negotiated price.
• Finally, you can also sell DCS through online auction platforms. Online platforms can be a good way to reach a large number of potential buyers and get a better price for your DCS.

• RoDTEP – Remission of Duties or Taxes on Export Products
• RoSCTL – Rebate of State & Central Taxes and Levies
• MEIS – Merchandise Exports from India Scheme
• SEIS – Service Exports from India Scheme

The RoDTEP scheme is a new government initiative that aims to provide relief to Exporters from the burden of embedded Central, State, and Local Taxes and Duties on inputs used in the production of exported goods. The scheme is aimed at reducing the cost of production for exporters and to make them more competitive in the global market.

• The RoDTEP scheme which has been in effect from January 1, 2021 applies to only those goods (not services) that are manufactured and exported from India;
• Re-exported goods, i.e., goods that are originally produced outside India but then are transhipped via India, are not covered under the scheme;
• Manufacturer exporters, as well as Merchant exporters or Traders, can avail of the benefits of the RoDTEP scheme;
• There is no maximum or minimum turnover threshold to claim the benefits under the scheme;
• The scheme also covers the goods that are exported through e-Commerce Platforms via courier services

• Create RoDTEP Credit Ledger
  To avail of the benefits provided under the RoDTEP scheme, exporters must first create an electronic Credit Ledger by logging in to the ICEGATE Portal (www.icegate.gov.in) using their Class 3 Digital Signature Certificate (DSC). In case an exporter is using the portal for the first time, they need to register themselves and then log in using authentication credentials.
  Once the user has successfully logged in to the portal, they can select the ‘RoDTEP option’ from the Scheme Name drop-down menu and create a Credit Ledger Account.
• Declaration in the Shipping Bills
  Any exporter who wants to claim the benefits provided under the RoDTEP scheme must declare ‘RoDTEPY’ on that particular shipping bill, and ‘RoDTEPN’ in case they don’t want to avail the benefits. If a shipping bill does not specify either of these details, then, by default, the exporter will not get any reimbursement.
• Claim Processing & Scroll Generation
  Once the Export General Manifest (EGM) has been filed by the carrier, the Shipping Bills are are either sent to an Officer for intervention or directly to the respective Scroll Queues. Once the scrolls are generated, the amount is available in the form of Credits on the ICEGATE portal.
• Generating & Using Scrips
  The Credits available on the portal can be converted into Duty Credit Scrips by the exporters themselves. Every Scrip is given a unique Scrip ID.

The RoSCTL scheme is a government initiative that provides relief to exporters of garments and made-ups by providing rebate on embedded Central and State Taxes and Levies that were applied on inputs used in the production of these goods. The scheme endeavours to reduce the cost of production for exporters and make them more competitive in the global market.

The Merchandise Exports from India Scheme (MEIS) [discontinued] is a government initiative that provided incentives to exporters of goods manufactured or produced in India. The incentives were provided in the form of transferable Duty Credit Scrips, which can be used to offset the Customs Duty payable on import of raw materials or goods .

The Service Exports from India Scheme (SEIS) [discontinued] is a government initiative that provided transferable Duty Credit Scrips to exporters of Services from India.

The following table summarizes the key differences between the schemes:

Note: Eligibility criteria and incentive rates for the above schemes may change from time to time. It is always best to check with the relevant government authorities for the latest circulars.

No, GST is not chargeable on the sale of RODTEP / ROSCTL scrip. The Central Board of Excise and Customs (CBEC) has clarified that the supply of RODTEP / ROSCTL scrip is an exempt supply under GST. This is because the scrip is not a physical good, but rather a financial instrument that represents a claim on the government for a refund of embedded taxes and duties .