We had made some exports under the RoDTEP scheme more than one year back. We received the duty credit in the electronic credit ledger but did not generate the e-scrip. Now, our ledger shows the credit but does not allow us to make the
e-scrip. So, we are unable to use the duty credit. Is there any provision that says that the duty credit will lapse if we do not generate the e-scrip within one year?
No. Regulation 4(1) of the Electronic Duty Credit Ledger Regulations, 2021, says that the exporter will have the option to combine the duty credits under a particular scheme, allowed to him in one or more shipping bills or bills of export, and to carry forward the duty credits to create an e-scrip for that scheme in the ledger, customs station-wise according to the customs station of export, within a period of one year from the date of generation of the scroll in the customs automated system.
Provided that if the exporter does not exercise the option of creating the e-scrip within a period of one year, duty credit in each scroll will be combined customs station-wise for each scheme and will be automatically created by the customs automated system as a single e-scrip for duty credit for that scheme, for each customs station, in the ledger of the exporter. Regulation 6(2) of the regulations says that the e-scrip will be valid for a period of one year from the date of its creation in the ledger and any duty credit in the e-scrip that remains unutilised at the end of this period will lapse.
Regulation 6(3) of the regulations says that such duty credit in the e-scrip that has lapsed will not be re-generated. So, the Customs automated system should have automatically created the scrip, if you did not create the e-scrip within one year from the date of generation of the scroll. The duty credits do not lapse or expire within one year of generation of the scroll. The unutilised portion of the duty credits in the e-scrip expires only after one year of creation of the e-scrip. What you observe appears to be a case of malfunction of the customs automated systems software. You can take it up with the appropriate authorities.
We are an Export House and have received a high-value order from a company based in Ghana, under a UNIDO project. On behalf of the importer, the financing bank (ANA, Germany) will issue an “irrevocable confirmation payment order” (ICPO) in the exporter’s favour, covering 75 per cent of the purchase value in lieu of the LC. This document would also serve as Exhibit B in the contract. Is it workable in India? If not, should we opt for a particular transaction-specific ECGC policy? We want full payment security.
In my opinion, the ICPO referred to by you does not give you full payment security, as, say, a bank guarantee or irrevocable LC would give.
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