RoDTEP (Remission of Duties & Taxes on Export Product) Scheme was announced by Government of India in September 2019, this scheme is a combination of two existing schemes of GOI namely, MEIS (Merchandise Export from India Scheme) & RoSCTL (Rebate of State & Central Taxes and Levies Scheme) which are to be merged in one single scheme namely RoDTEP to ensure the compatibility with WTO (World Trade Organization) trade norms.
The scheme was announced by GOI on 14th September 2019, initially it was to be notified from April 2020. However, GOI had decided to continue to allow the benefit under MEIS & RoSCTL, until 31.12.2020. Hence, the benefit of the scheme to all export products has been extended with effect from 1st January, 2021.
Scheme covers all the sectors including textile. This scheme provides rebate of duties & taxes which were not imparted earlier such as local taxes, coal cess, mandi tax, electricity duties and fuel used for transportation.
However, the scheme provides for rebate only on export of goods, rebate on services will be covered under existing scheme of SEIS (Service Export from India Scheme).
- RoDTEP provides for reimbursement of duties & taxes (such as VAT and central excise on fuel, mandi tax, etc) which are levied at central, state and local level and are not refunded under any current mechanism or scheme.
- Previous schemes namely MEIS and RoSCTL, were deemed inconsistent with WTO trade norms. Hence, RoDTEP scheme has been introduced to accommodate earlier schemes and are framed as such to provide compatibility with the trade norms.
- To promote digital India initiative, credit will be provided to exporters through transferable electronic scripts/duty credits which will be maintained in exporters electronic credit ledger on the ICEGATE portal. This credit can be used to pay the basic custom duty in future, otherwise it can be transferred to other exporters.
- Scheme covers all the sectors including textile. Further, a dedicated committee has been established to formulate a plan for introduction of the scheme among various sectors and also to notify rates of benefit under the scheme.
- Rates of benefit would be at product level based on ITC-HS codes. Rates would be standard rates applicable across particular sector/product lines. Standard rates would be determined as percentage of free on board (FOB) value of the eligible export products.
- To avail the benefit under the scheme an exporter will be required to declare his intention for each export items in the shipping bill or bill of export.
- A monitoring and audit mechanism, with an information technology based risk management system would be put in to physically verify the records of the exporters. This will enable faster clearance through digital platform.
How to claim Benefit
- First thing exporter need to do is to declare his intention of availing the benefit of the scheme on the shipping bill or bill of export.
- Once EGM (Export General Manifest) is filled claim will be processed by the customs.
- Once processed a scroll with all individual Shipping Bills for admissible amount would be generated and made available in the users account at ICEGATE.
- User can create RoDTEP credit ledger account under Credit Ledger tab. This can be done by IECs who have registered on ICEGATE with a DSC.
- Exporter can log in into his account and generate scrip after selecting the relevant shipping bills.
- Details of scrips utilized for payment of basic custom duty would be captured in the license table of bill of entries.
In the present scenario of Covid-19, where the merchandise exports are declining and industries are already facing uncertainties and slowdown, export oriented industries are to be supported by the government for them to survive. Present RoDTEP scheme provides only such incentive to Indian exporters for them to face the competition in the international market. The effective and efficient introduction of RoDTEP scheme will be very beneficial in improving the current export industry sentiments which were down otherwise.
PDF Version of the blog Attached: Remission of Duties & Taxes on Export Products Scheme (RoDTEP)
The information contained herein is based on the press release issued by Government of India dated 31.12.2020. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Readers should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.