The Central Board of Indirect Taxes & Customs (CBIC) has issued an Alert Circular dated February 02.02.2026 regarding the detection of ineligible claims of RoDTEP benefits by certain exporters simultaneously availing benefits under the Duty Free Import Authorisation (DFIA) Scheme. The issue was flagged by the Office of the Commissioner of Customs, Cochin, following scrutiny of recent export consignments.
According to the circular, RoDTEP benefits are not admissible in cases where exports are made under duty exemption schemes that provide remission or exemption of duties, unless specifically permitted under the scheme provisions.
Key Points Highlighted in the Alert
Non-admissibility of RoDTEP with Duty Exemption Schemes
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, notified vide CBIC Notification No. 76/2021-Customs (NT) dated 23.09.2021, does not permit benefits where exports are conducted under schemes involving duty remission or exemption.
Although the scheme was later extended to specific categories including Advance Authorisation holders, EOUs and SEZ units per DGFT Notification No. 70/2023 dated 08.03.2024, this does not include exports under DFIA.
DFIA Scheme Already Provides Duty Exemption
The DFIA Scheme grants exemption from Basic Customs Duty on inputs used in the production of export goods, as detailed in CBIC Notification No. 40/2006-Customs (NT) dated 01.05.2006.
Since duties on inputs are already exempted, simultaneous claims of RoDTEP under DFIA are not allowed under current policy provisions.
Advisory to Exporters and Field Formations
The circular urges all Principal Commissioners/Commissioners of Customs to exercise enhanced scrutiny and ensure that exporters claiming RoDTEP benefits are not availing any duty-exempting schemes, including DFIA, that render such benefit ineligible.
Preventive Action
Field formations have been instructed to verify past claims, prevent revenue leakage, and initiate corrective actions wherever ineligible benefits have been availed.
Background
The RoDTEP Scheme was introduced to refund embedded taxes and duties not rebated through other schemes, with the objective of enhancing export competitiveness. DFIA, on the other hand, allows duty-free imports of inputs used in export production. Since both schemes address duty burdens, simultaneous availment is expressly barred.
The Customs can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/02/Customs-Circular-02.02.2026.pdf
