The Office of the Commissioner of Customs, NS-II, at Jawaharlal Nehru Custom House (JNCH), Nhava Sheva, has clarified that exports made under the Duty-Free Import Authorization (DFIA) Scheme are not eligible for benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
Customs has directed exporters who have availed such benefits to take necessary steps for repayment or reversal of the inadmissible amounts, together with applicable interest, in accordance with law. The concerned exporters must communicate their payment particulars to the Drawback Section within 30 days of issuance of the notice.
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The notice, issued by Giridhar G. Pai, Commissioner of Customs, NS-II, JNCH, warns that failure to comply will attract proceedings under the relevant provisions of Customs law and the rules and regulations framed under it, including the insertion of an alert for recovery of government dues.
The central issue addressed in the notice is whether the extension of RoDTEP benefits to certain export categories in March 2024 also made exports under the DFIA Scheme eligible.
Customs has clarified that DFIA exports were not covered by that amendment.
The notice refers to a letter issued by the Central Board of Indirect Taxes and Customs (CBIC), Drawback Division. According to the notice, the letter explained that RoDTEP rebates were originally unavailable for exports made by Advance Authorization holders, Export Oriented Units (EOUs), Special Economic Zone (SEZ) units and DFIA holders under DGFT Notification No. 19/2015-2020 dated August 17, 2021.
Subsequently, DGFT Notification No. 70/2023 dated March 8, 2024 removed certain categories from the list of exports ineligible for RoDTEP benefits. With effect from March 11, 2024, the benefit was extended to exports of products manufactured by Advance Authorization holders, except deemed exports, as well as EOUs and SEZ units.
However, the public notice expressly states that the DFIA Scheme was not included in that amendment. Consequently, the relaxation granted to the specified categories did not extend to exports made under DFIA.
The notice records that representations received from the trade prompted a reference to the Directorate General of Foreign Trade (DGFT).
DGFT subsequently clarified that exports made under the DFIA Scheme are not eligible for RoDTEP benefits.
Relying on this clarification and the applicable provisions, Customs has advised exporters, Customs brokers, trade associations and other stakeholders to ensure that RoDTEP benefits are neither claimed nor availed in respect of exports under DFIA.
The notice therefore treats the exclusion as continuing under the existing framework and seeks compliance both in relation to future claims and benefits already availed.
The public notice includes Annexure-A, identifying exporters whom Customs describes as having availed inadmissible RoDTEP benefits on DFIA exports.
The annexure covers benefits availed during the period from March 11, 2024, to September 10, 2026, and contains 348 serial-numbered entries. It sets out the Importer Exporter Code (IEC), exporter name, number of shipping bills with RoDTEP accrued and the total accrued amount for each entry.
The first entry, concerning Mahavir Namkeens Private Limited, records RoDTEP accrual of ₹19,03,372 across 177 shipping bills. Other entries include Three M Paper Boards Limited, with ₹18,64,935 across 179 shipping bills, and Shakti Food Industries, with ₹18,03,771 across 239 shipping bills.
The amounts in the annexure are described as accrued RoDTEP benefits. The accompanying notice directs the concerned exporters to take the necessary steps for repayment or reversal of the inadmissible amounts, together with applicable interest, if any, under the provisions of law. 126:2026
The exporters concerned must send their payment particulars to the Drawback Section at drawback.jnch@gov.in within 30 days of issuance of the public notice.
This reporting requirement accompanies the direction to repay or reverse the inadmissible benefits. The notice does not prescribe a specific interest rate; instead, it refers to interest applicable under the relevant legal provisions.
Customs has warned that failure to intimate the payment particulars within the stipulated period will lead to initiation of proceedings under the appropriate provisions of Customs law and the associated rules and regulations.
The action may also include insertion of an alert for recovery of government dues.
The notice also addresses exporters who have availed similar inadmissible RoDTEP benefits, even where their transactions are not reflected in the enclosed list.
Paragraph 8 directs such exporters to repay the inadmissible RoDTEP amount, along with applicable interest, in accordance with the prescribed provisions.
Accordingly, the compliance direction is not confined to the entries in Annexure-A. It also covers other instances of similar benefits availed on exports made under the DFIA Scheme.
Public Notice takes effect immediately for the information and compliance of all concerned. Difficulties encountered in its implementation may be brought to the attention of the issuing Commissioner.
The clarification draws a distinction between the export categories included in the March 2024 extension of RoDTEP and DFIA exports, which remained outside its scope. Exporters who availed RoDTEP benefits on DFIA shipments now face a direction to repay or reverse those benefits and report payment particulars within the prescribed period.Â
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