Nilanjan
The Government of India launched RoDTEP scheme on January 13, 2020 in a press release. RoDTEP is a part of larger strategy to boost trade, exports and government revenue in India. The present government doubled duty-free exports for 6-12 months before unveiling the program. The Merchandise Exports from India Scheme i.e. MEIS and ROD/VAT Remission Scheme were accessible to exporters under various categories and these are now extended as per the scheme. However, these are developed as a single package.
What is RoDTEP Scheme?
The RoDTEP Scheme (Remission of Duties and Taxes on Exported Products Scheme) is a recent initiative developed by the Indian Government to support exporters. This RoDTEP scheme replaced the old MEIS scheme on January 1, 2021. It was the same day when the RoDTEP scheme was formally launched in the press. The main objective of this scheme is to provide all exporters with compensation for taxes and tariffs that were not reimbursable previously.
The scheme promotes international trade by offering new benefits to exporters shipping goods outside of the country. If it comes to recovering import substitution funds and exporting without hassles, the strategy is helpful for both small and medium-sized firms. This is because it expands the amount of time from 10 days to 1 month to clear the documents. The program enables duty refunds and tax savings for exported products and services.
RoDTEP Scheme Details in Highlights: An Overview
| Name of Scheme: | RoDTEP Scheme |
| Launched by: | The Government of India |
| Launched on | January 13, 2020 |
| Objective | to boost trade, exports and revenue |
| Official Website | https://www.icegate.gov.in/ |
RoDTEP Scheme: Objectives
Some of the major objectives of the RoDTEP Scheme have been mentioned below:
Ø The goal of the scheme is to refund amounts not currently paid.
Ø The scheme covers taxes, levies and duties paid at the local, state and federal levels on the exported products, including any cumulative indirect taxes previously paid on the products and services used in creation of them
Ø These levies, taxes and duties are associated with the sale of the exported goods.
Ø Under the scheme, the refund will not apply to taxes and duties that have been previously credited, remitted or waived.
RoDTEP Scheme: Features and Benefits
Some of the main features and benefits of RoDTEP Scheme are mentioned below:
Ø RoDTEP Scheme suits all industries.
Ø RoDTEP includes all municipal, state and central charges and taxes that are covered by no other system. Now, the RoDTEP contains items that were formerly under the RoSCIL and MEIS.
Ø Exporters will get refunds in the form of transferrable duty, credits or electronic checks and a computerized ledger will have all the details recorded.
Ø On imported goods, it can be used for payment of the minimal customs duty. The scheme enables other importers to receive the credits.
Ø An adult, monitoring system coupled with an IT-based risk management scheme would manually verify the exporters’ records to enable faster clearance via a digital platform.
RoDTEP: Understanding Relevance
The RoDTEP program was launched to boost exports as well as associated revenue for the Government of India. The demonstration is done by the government’s endorsement and its registration with the Indian Ministry of Commerce. The new program has replaced the VAT and MEIS Remission, mostly utilized by exporters. The new approach will enable exporters to claim the benefits, related to tax, more elaborately and effectively. It will expectedly facilitate commerce.
RoDTEP Scheme: Eligibility Criteria
The individuals, who are willing to apply for RoDTEP Scheme, must meet the eligibility criteria mentioned below:
Ø The scheme covers all industries. Sectors requiring a lot of workforce will get priority.
Ø Under the scheme, no minimum turnover is required for getting benefits.
Ø The program is open to merchant exporters as well as manufacturer exporters.
Ø For the exported goods eligible for the program’s benefits, these must come from India.
Ø The scheme is applicable for products dispatched by courier using e-shopping carts.
Ø Units focussed on exports and units in special economic zones are acceptable.
RoDTEP Scheme: Required Documents
Some of the important documents, which are required for the RoDTEP Scheme, are mentioned below:
- Registration cum Membership Certificate (RCMC)
- Electronic Bank Realization Certificate (eBRC)
- Digital Signature Certificate (DSC) – Class 3
- Shipping Bills
RoDTEP Scheme Rates
Under the scheme, a Committee in the Department of Revenue’s Drawback Division, with the right representation from the DGFT and DoC, experts and line ministries, shall decide the ceiling rates for the sectors that have been prioritized by the Departments of Commerce and Revenue. The Ministry of Finance, in collaboration with the Department of Commerce (DoC), will settle the overall outlay/budget for the RoDTEP Scheme while considering all pertinent variables.
Tax Refund Rates
When it comes to the export of goods under the notified 8-digit HS Code, qualified exporters will receive a rebate under this scheme at a rate that has been announced as a percentage of FOB value with a value cap / unit of the exported product, where necessary. A certain amount of rebate per unit may be announced for some export products. In accordance with APPENDIX 4R, value cap per unit and rates of rebate under RoDTEP will be notified.
Supplies, Items, and Categories Not Eligible for the Scheme
Under the scheme, the exporters and export categories ineligible for rebates are mentioned below:
- Imported commodities exported under FTP’s paragraph 2.46
- Products exported that must meet a minimum export duty or export price
- Exports through trans-shipment, or exports from a third nation but being trans-shipped via India
- Products listed on Schedule 2 of the ITC (HS) Export Policy as being forbidden from export
- Products prohibited from export under Schedule 2 of the ITC (HS) Export Policy
- Deemed Exports
- Products manufactured by DTA units are supplied to FTWZ/SEZ units.
- Goods produced with BTP and EHTP
- Products manufactured at a warehouse under Section 65 of the Customs Act of 1962 (52 of 1962)
- Products exported or produced in keeping with an export obligation against an Advance Authorization, Duty-Free Import Authorization or Special Advance Authorization, or issued under a duty exemption scheme relevant to Foreign Trade Policy
- Products made or exported by any units housed within an Export Processing Zone, a Free Trade Zone, or a Special Economic Zone
- Under the Foreign Trade Policy, items made or exported by a facility that has been granted a license as a fully export-oriented unit (EOU)
- Exports from non-EDI ports or exports for which no ICEGATE EDI electronic documentation has been made
- Products made or exported while utilizing Notification No. 32/1997-Customs issued on April 1 of that year.
- Products that have been in use since their creation RoDTEP Scheme Rules
RoDTEP Scheme: How to Apply
To apply for RoDTEP Scheme, intending users need to follow the steps given below:
- First of all, visit the official website of ICE Gate i.e., https://www.icegate.gov.in/
- The HOME page of the web portal will open before your eyes.
- Now, use a Class 3 Individual type Digital Signature Certificate to fill up the form.
- After that, attach all the documents that are required.
- Finally, submit the application form
