The Union Finance Ministry on Friday extended export-related benefits, including Duty Drawback, Remission of Duties or Taxes on Exported Products (RoDTEP), and Rebate of State and Central Taxes and Levies on Export of Goods (RoSCTL), to exports made via courier mode.
The Central Board of Indirect Taxes and Customs (CBIC) under the Department of Revenue, Ministry of Finance (MoF), in its circular said, “The courier import and export shipments are handled on the Express Cargo Clearance System (ECCS) for clearance at the notified International Courier Terminals (ICTs). Owing to inherent limitations of the system’s architecture, it has not been feasible to process certain export-related payments (i.e. Duty Drawback, RoDTEP, and RoSCTL) on ECCS. Hence, it has been decided to use the Indian Customs EDI System (ICES) at the International Courier Terminals to process the aforesaid payments, as ICES has the requisite facilities, such as scroll generation and integration with PFMS.”
Previously, limitations within the Express Cargo Clearance System (ECCS) prevented exporters from claiming benefits like Duty Drawback, RoDTEP, and the Scheme for RoSCTL on courier exports.
“This change allows businesses to utilise courier services for imports and exports related to these schemes, offering greater flexibility and efficiency in their supply chains. Previously, courier services were limited to the EOU Scheme. The updated regulations include revised procedures to accommodate these additional export promotion schemes,” said Saurabh Agarwal, Tax Partner, EY.
According to the press statement of the Finance Ministry, the move aims to provide a level playing field and a conducive environment for the inclusive and harmonious growth of exports through courier mode and seeks to enhance the competitiveness of MSME exporters.
“This initiative is expected to give a major boost to courier exports and strengthen India’s position in the era of the emerging global e-commerce sector,” said the press statement.
The e-commerce business in India has seen exponential growth over the last decade and is expected to witness a steep increase in revenues in the coming years. As per estimates, India’s e-commerce exports are likely to rise to $400 billion by 2030.
As far as courier exports are concerned, in FY 2022-23, the total value of courier exports stood at Rs 7,995 crore, with e-commerce exports accounting for Rs 3,510 crore. The figures are expected to further increase significantly given the global trends and impetus provided to the e-commerce industry through various government initiatives.
This hurdle has been cleared with the decision to leverage the Indian Customs EDI System (ICES) at International Courier Terminals (ICTs). ICES offers the necessary features, such as scroll generation and integration with the Public Financial Management System (PFMS), to seamlessly process these export-related payments.
Authorised couriers claiming Duty Drawback, RoDTEP, or RoSCTL benefits will now file their Shipping Bills on ICES using their existing Courier Registration. Custodians operating ICTs will register themselves on ICES to handle export goods registration and exchange relevant messages. Goods will be physically handled and examined at the ICTs, while customs clearance will be processed electronically through ICES.
First Published: Sep 13 2024 | 9:32 PM IST
