📢 CBIC Clarifies RoDTEP & RoSCTL in Short Realisation Cases
Guidelines issued on FOB valuation, permissible deductions & ECGC treatment
In a key move to address practical challenges faced by exporters, CBIC has issued a clarification on remission/rebate eligibility under RoDTEP and RoSCTL in cases of short realisation of export proceeds.
The circular brings much-needed alignment with existing practices and ensures exporters are not penalised for genuine commercial situations.
🔑 Key Highlights
✔️ Full FOB Value Benefit Allowed
RoDTEP and RoSCTL benefits can be claimed on full FOB value, without deducting:
Agency Commission
Foreign Bank Charges
👉 Condition: Total deductions must remain within 12.5% of FOB value
✔️ Excess Deductions to be Adjusted
If commission + bank charges exceed 12.5%, the excess amount must be reduced from FOB value for benefit calculation.
✔️ ECGC Compensation Recognised
In cases of short realisation:
ECGC compensation can be treated as receipt of sale proceeds
✔️ No Recovery in Genuine Cases
RoDTEP & RoSCTL benefits need not be recovered, if:
RBI permits write-off of export proceeds, and
Exporter provides certificate from Indian Foreign Mission confirming non-recovery
✔️ Clarity for Trade & Field Officers
This ensures uniform implementation and reduces disputes across customs formations.
⚡ Final Word
This circular is a practical and exporter-friendly clarification. It safeguards benefits in routine commercial deductions and provides a fair mechanism for handling genuine payment defaults backed by ECGC, subject to proper documentation.
A step forward in making export incentives more realistic, consistent, and business-aligned.
🔗 Official Circular
Read the full circular here:
https://taxinformation.cbic.gov.in/view-pdf/1003320/ENG/Circulars
(Circular No. 20/2026-Customs dated 10 April 2026)