The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 20/2026-Customs dated April 10, 2026, clarified that exporters can avail benefits under RoDTEP and RoSCTL schemes on full FOB value without deducting agency commission and bank charges, subject to a 12.5% cap. It also allows compensation received from ECGC for short realisation to be treated as sale proceeds, provided RBI permits write-off and proper certification is furnished. The clarification aligns these schemes with existing duty drawback provisions to ensure consistency and support exporters.
Representations have been received from the trade seeking clarifications whether as in case of duty drawback, full remission or rebate under RoDTEP and RoSCTL schemes is also available on Free on Board (FOB) value without deducting the agency commission and bank charges. Similar clarification has been requested in case of receipt of payment of compensation for short realisation of sale proceeds through Export Credit Guarantee Corporation (ECGC).
The matter has been examined in the Board in consultation with the DGFT and Ministry of Textiles. In this context, attention is invited to Board Circular No. 64/2003-Cus dated 21.07.2003 and 33/2019-Customs dated 19.9.2019 wherein it has been clarified that duty drawback is permitted on full FOB value without deducting agency commission and foreign banking charges, provided these deductions fall within the overall limit of 12.5% of the FOB value. Agency commission and foreign bank charges, separately or jointly, exceeding this limit need to be deducted from the FOB value for granting duty drawback. It is stated that similar treatment in respect of realisation of export proceeds shall be applicable for grant of RoDTEP and RoSCTL benefits also.
Further, it is also clarified that, in line with Rule 18 of the Customs and Central Excise Drawback Rule, 2017 and in terms of para 2.54 of the Foreign Trade Policy, 2023 read with para 2.71 and 2.72 of HBP, compensation for short realisation of sale proceeds from Export Credit Guarantee Corporation (ECGC) may be treated as receipt of sale proceeds and remission or rebate under RoDTEP and RoSCTL schemes may not be recovered, provided the Reserve Bank of India writes off the requirement of realisation of the sale proceeds on merits and the exporter produces a certificate from the concerned Foreign Mission of India about the fact of non-recovery of sale proceeds.
The Circular can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1003320/ENG/Circulars
