Last updated: December 6th, 2022 12:19 PM

Procedure to Apply Scrips under Scheme for Rebate of State Levies (RoSL)

The Directorate General of Foreign Trade (DGFT) has specified the procedure for the application for issuance of Scrips under the scheme for Rebate of State Levies (RoSL) vide a Public Notice No. 25/2015-20 dated 13th October 2020. With this notification, DGFT announced the procedure for issuing RoSL for Shipping Bills before March 7, 2019, under a scrip mechanism. The procedure for applying the recovery mechanism and the new Aayat Niryat Form ANF-4SL is also notified. This article will explain the Procedure to Apply Scrips under Scheme for Rebate of State Levies (RoSL) in detail.

Scheme for Rebate of State Levies (RoSL)

The Government of India has launched the Rebate of State Levies (RoSL) to Support the Textile Sector. The scheme's primary objective is to reimburse the State levies that garment and made-up exports incurred.

Duty Credit Scrips under RoSL

Duty Credit Scrips (DCS) under the Scheme for Rebate of State Levies (RoSL) is an export promotion benefit offered by the Government of India under the Foreign Trade Policy (FTP) 2015-2020. The DCS provides tax incentives on exports, which exporters can use to set off their import duties. Foreign Trade Policy 2015-2020 lays down the features and the provisions related to Duty Credit Scrips. The Scheme for Rebate of State Levies (RoSL) is implemented and administrated by the Ministry of Textiles in association with the Directorate General of Foreign Trade (DGFT).

Synopsis of DGFT Notification

The synopsis of the Procedure for the application and issuance of Scrips under the Scheme for Rebate of State Levies (RoSL) is as follows:

• Application for claiming a rebate under the Rebate of State Levies (RoSL)scheme needs to be filed online in ANF-4SL using a digital signature on the official website of DGF.
• A maximum of 50 Shipping Bills will be allowed to be attached along with one application.
• Rebate under the scrip mechanism is admissible only for Shipping Bills for which the Drawback has been disbursed and the ROSL amount has not been disbursed.
• Duty Credit scrips will be valid for two years from the date of issue.
• Applications related to shipping bills with Let Export Order dated between 1st October 2017 and 6th March 2019 and LEO dated before 1st October 2017 are to be filed separately.

Note: It is also notified that ROSL scripts would be available only for those shipping bills transmitted from the ICEGATE server to the DGFT server and for which exporters have not received any RoSL account.

Form for claiming rebate under RoSL – Form ANF 4SL

According to the notification, an application for claiming a rebate under RoSL needs to be filed online in ANF-4SL, using a digital signature, on the official website of DGFT.

• The exporter is required to link relevant Electronic Data Interchange shipping bills and e-BRCs and submit the application through online mode only.
• A maximum of 50 shipping bills will be allowed to be attached in one application by the exporter in the online module.

Rebate under the scrip mechanism under Rebate of State Levies is admissible only for the shipping bills for which the Drawback has been shipped, and the RoSL amount has not been disbursed. Only those Shipping bills on which Customs authorities/ ICEGATE have not disbursed RoSL will be transmitted online by ICEGATE to the DGFT Server for the exporter to apply. However, the applicant needs to ensure that no application is filed against the shipping bill for which the RoSL claim has been received from the Customs Authorities along with the Drawback. The Form ANF - 4SL for claiming a rebate under the Scheme for Rebate of State Levies (RoSL) is as follows:

The Facility of Split Scrips

As per this notification, the applicant must ensure that they are applying only to the concerned Jurisdictional Regional Authorities (RA) for getting the scrip and shall submit a declaration to that effect while applying for the scrip online. However, the limitation imposed for choosing an RA at the beginning of the financial year and maintaining the same RA for all applications in that Financial Year shall not apply.

Choice of Port of Registration for RoSL Scrips

The applicant can choose the Port of registration from any one of the (Electronic data interchange) EDI ports from where export has been made for the shipping bills in that online application. Duty Credit Scrip will be issued with that single EDI port of registration. After system-based approval of the final rebate amount, the scrip will be issued by RAs in a paperless mode. However, Regional Authorities will scrutinize 2 percent of reported RoSL applications monthly under a Risk Management System (RMS). The DGFT will generate the RMS system.

Registration of Scrips

Duty credit scrip needs to be registered at the port prescribed on the scrip. This is to be done before allowing the usage of duty credit. Once registered at the EDI port, scrip can be automatically used at any EDI port for the import, and any manual port under Telegraphic Release Advise (TRA) procedure.

The validity period of Duty Credit Scrip

Duty Credit Scrip will be valid for two years from the date of issue and must be valid on the date on which the actual debit of duty is made. Revalidation of Duty Credit Scrip will not be permitted.

Prescribed Date for Application Submission

• For filing claims under RoSL, applications containing shipping bills with Let Export Order (LEO) date between 01.10. 2017 and 06.03.2019 are required to be submitted separately.
• A separate application containing shipping bills with the LEO date before 01.10.2017 must be submitted.
• Last date for submitting applications containing shipping bills with LEO date from 01.10. 2017 to 06.03.2019 would be 30.06.2021.
• The last date for filing applications containing shipping bills with LEO date before 01.10.2017 will be notified later

After these submission deadlines, no application will be allowed, and the shipping bills will become time-barred. There is no provision for late cuts under the Scheme for RoSL under the scrip mechanism.

Eligibility for Claim under the Scheme for RoSL

All exporters are eligible for claiming under the Scheme for RoSL, except the entities/IEC, which are in the Denied Entity List of the DGFT.

Recovery Mechanism

The record of shipping bills and other documents related to export on which a claim under the RoSL Scheme has been filed must be maintained by the applicant for three years from the date of issuance of the scrip for post-issue scrutiny and recovery purposes. Regional Authority may call such documents in original at any time within three years. In case the applicant fails to submit the original documents on demand by Regional Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section 28AA of the Customs Act, 1962, from the date of issuance of scrip. Click here to learn more about the official notification of DGFT regarding the Procedure for the application and issuance of Scrips under the Scheme for Rebate of State Levies (RoSL) scheme.