Chatroom: Rodtep scrolls can stop until annual return is finally filed

Experts answer key trade queries on export quotations, Rodtep compliance, sea cargo liability and customs valuation for related-party imports

Our customer in the UK wants our quotation to state the unit weight in pounds and ounces instead of the metric system we normally use. Is it allowed? 

Yes, for export quotations. Section 4 of the Legal Metrology Act, 2009 says every unit of weight or measure shall be in accordance with the metric system based on the International System of Units. Section 11(1)(a) says no person shall, in relation to any goods, things or service, quote any price or charge otherwise than in accordance with the standard unit of weight, measure or numeration. However, Section 11(2) says Section 11(1) shall not apply to export of any goods, things or service. Therefore, for an export quotation to a UK customer, unit weight may be stated in pounds and ounces. For domestic sale documents, the metric system should be used. 

We claimed Rodtep (Remission of Duties and Taxes on Exported Products) of more than ₹1 crore but did not file the Annual Rodtep Return (ARR). Can the DGFT (Directorate General of Foreign Trade) deny future scrolls? 

Yes. Para 4.94 of the Handbook of Procedures, 2023, added through DGFT Public Notice No. 27/2024-25 dated October 23, 2024, makes filing of the ARR mandatory where Rodtep claims for an IEC (Import Export Code) exceed ₹1 crore in a financial year. It says ARR non-reporting will lead to denial of benefits and no further scroll out of Rodtep claims at the Customs port after the grace period of three months, i.e. after  June 30. However, scrolls can be resumed after filing the ARR and paying the applicable composition fee. Exporters should not treat ARR as a mere statistical exercise. 

Which law governs liability of carriers for damage to goods carried by sea from Indian ports? 

The governing law is the Carriage of Goods by Sea Act, 2025, which came into force on September 10, 2025. Section 3 says that, subject to the Act, the rules in the Schedule apply to carriage of goods by sea in ships carrying goods from any port in India to any other port, whether in or outside India. The Schedule defines the “carriage of goods” period from loading to discharge. It imposes responsibilities and liabilities on the carrier for loading, handling, stowage, carriage, custody, care and discharge of goods. It also requires the carrier, before and at the beginning of the voyage, to exercise due diligence to make the ship seaworthy and cargo spaces fit and safe. 

We import from our overseas group company. Will Customs reject our declared value merely because we are related? 

No. The declared value cannot be rejected merely because the buyer and seller are related. Rule 3(3) of the Customs Valuation Rules, 2007 says transaction value can be accepted if the relationship has not influenced the price. However, the importer must be ready with transfer-pricing policy, price lists, comparable import data, royalty or technical-fee details and inter-company agreements. Cases may be referred to the Special Valuation Branch under CBIC Circular No. 5/2016-Customs dated February 9, 2016 where Customs sees prima facie need for inquiry.  Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in