Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 20/2026-Customs dated April 10, 2026, clarifying the treatment of export incentives under the RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies) schemes. The circular brings much-needed relief by addressing scenarios where exporters face short realisation of export proceeds, a common issue in global trade due to payment defaults or delays. Key Clar
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FAQ :
The circular allows exporters to claim benefits under RoDTEP and RoSCTL based on the Free on Board (FOB) value, even if the actual export proceeds realised are less than the FOB value.
Yes, deductions such as agency commission and foreign bank charges are permitted, but they must not exceed 12.5% of the FOB value.
Compensation received from the Export Credit Guarantee Corporation (ECGC) for short realisation can be treated as realised export proceeds.
Exporters can retain benefits if the Reserve Bank of India (RBI) writes off the unrealised amount and a certificate from ECGC or the relevant authority confirms non-recovery of proceeds.
The clarification aligns with the Customs and Central Excise Drawback Rules, 2017, the Foreign Trade Policy, 2023, and earlier CBIC circulars from 2003 and 2019.
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