Legal Applicability, Thresholds, Documentation & Risk Advisory for Manufacturer-Exporters
Legal Backing and Policy Framework
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RoDTEP Scheme under Chapter 4 of the Foreign Trade Policy (FTP) 2023–28
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DGFT Notification No. 27/2023–24 dated 15.11.2023
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Public Notice No. 52/2015–20 dated 15.11.2023
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Governed under Section 5, FT (Development & Regulation) Act, 1992
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Read with Rule 6, Foreign Trade (Regulation) Rules, 1993 and Customs provisions
Appendix 4RR is an annual compliance declaration to be filed by eligible manufacturer-exporters for each Financial Year under review, disclosing actual incidence of unrebated taxes/duties/levies on exported goods.
1. Applicability – When and Who Must File Appendix 4RR?
For FY 2023–24 and FY 2024–25, filing is mandatory if:
| Condition | Threshold |
|---|---|
| Total RoDTEP claim for the IEC | Exceeds ₹1 crore |
| RoDTEP claim under a single 8-digit HS code | Exceeds ₹50 lakh |
| Situation | Required Filing |
|---|---|
| No HS code crosses ₹50 lakh | File for HS code with highest RoDTEP claim |
| One or more HS codes cross ₹50 lakh | File separate Appendix 4RR for each such code |
| Mixed DTA/SEZ/EOU units | File separately for each unit type (DTA / EOU / SEZ / AA) |
2. Purpose and Nature of Appendix 4RR
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Appendix 4RR is not a refund application
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It is a declaration of duty incidence, enabling:
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DGFT rate rationalisation
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Risk-based audit under Customs/DGFT RMS
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No adjustment or denial of RoDTEP is made solely on the basis of declared duties being lower than the RoDTEP credited amount
Key Rule: RoDTEP rates are notified as a % of FOB value. Even if actual embedded duties are lower than the amount claimed, there is no automatic refund reversal, provided declarations are truthful and supportable.
3. Fields to Be Declared in Appendix 4RR
| Section | Description | Notes |
|---|---|---|
| Export Details | HS Code, Product Description, Quantity, FOB | Match with Customs shipping data |
| Duties Paid | VAT/Excise on inbound/outbound transport | Usually “NIL” under GST regime |
| Electricity Duty | Based on actual DISCOM bills | Upload summary worksheet |
| Captive Fuel Duty | For diesel/gas used in Genset | Estimate with method justification |
| Stamp Duty | On export documents | Declare NIL if not applicable |
| Embedded GST | On purchases from unregistered dealers | Report only if documented |
| Any Other Duties | Other local taxes, fees (if any) | Must be explained |
4. Key Clarifications on Low Incidence vs High RoDTEP Claim
It is not mandatory that the total of reported duties matches the RoDTEP amount credited, since:
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RoDTEP is based on notified rates and not actual cost
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Exporters may legitimately report low unrebated duties (e.g., ₹2 lakhs) while claiming RoDTEP of over ₹1 crore
✅ Compliance expectation: Declare accurate, supportable figures — even if low. No refund clawback arises from low declarations alone unless fraud is detected.
5. Audit Risk & RMS Scrutiny Readiness
If your RoDTEP return is selected under the Risk Management System, you may be asked to produce:
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Electricity duty bills (DISCOM invoices)
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Genset logbooks and diesel purchase invoices
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Estimation logic (e.g., per unit of export) for captive fuel
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GST invoices for embedded tax (if any)
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Explanation memos for “NIL” entries (VAT/Excise under GST)
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ICEGATE shipping bill matching with HS codes
Recommendation: Maintain a RoDTEP Compliance Folder for each HS code declared.
6. Filing Portal and Timeline
| Item | Details |
|---|---|
| Filing Portal | https://www.dgft.gov.in |
| Due Date for FY 2023–24 | Suggested: 31 July 2024 (no official due date notified yet) |
| Due Date for FY 2024–25 | Expected to follow similar window in mid-2025 |
| Format | Online filing only – Appendix 4RR must be filed HS code-wise and unit-wise |
7. Legal Consequences of Non-Compliance or Misreporting
| Violation | Consequences |
|---|---|
| Non-filing despite applicability | Violation of Para 4.59 of FTP 2023, RMS flagging |
| Late filing | May affect DGFT rating or lead to audit scrutiny |
| False declarations | Action under |
Section 132, Customs Act, 1962
Section 11(2), FTDR Act, 1992
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Suspension of IEC or RoDTEP benefits
8. Conclusion: Legal Best Practice for FY 2023–24 & 2024–25
All manufacturer-exporters whose RoDTEP claim exceeds ₹1 crore in a year must treat Appendix 4RR as a non-negotiable legal compliance.
While actual duty incidence may appear nominal, DGFT expects truthful, well-documented declarations. There is no requirement to match RoDTEP claims to declared duty values. But deliberate misreporting or non-filing will attract serious consequences.
