RoDTEP, short for Remission of Duties and Taxes on Export Products, is a new program in India that started on January 1, 2021. This scheme replaced an older one called MEIS (Merchandise Exports from India Scheme). But what does RoDTEP mean for regular folks like us?
Well, imagine you’re a business that sells things to other countries. When you do that, you often have to pay various taxes and duties on the products you’re exporting. These are like extra costs that can make it harder for your business to compete in the global market.
Now, with RoDTEP, the government wants to help businesses by giving them refunds for some of these taxes and duties they used to pay. This means more money in the pockets of exporters, which can encourage them to sell more stuff to other countries.
The whole idea behind RoDTEP is to make it easier for Indian businesses to sell their products abroad. Before, it was a bit tough, but now with these refunds, it’s a bit like getting a discount when you export your goods. This can make Indian products more attractive to people and businesses in other countries.
So, in simple terms, RoDTEP is a scheme that helps Indian exporters by giving them back some of the money they used to pay in taxes and duties. This is good news because it can boost exports and help Indian businesses grow.
Sl No | Particulars | Meanings / Definitions |
1 | RoDTEP full form | Remission of Duties and Taxes on Exported Products |
2 | RoDTEP Purpose | To refund currently unrefunded Duties / taxes / levies at the Central, State and local level, borne on the exported product, prior stage cumulative indirect duties / taxes / levies on goods and services used in the production & distribution of the exported product |
3 | Period (Effective Date) | Scheme effective from 01-01-2021 |
4 | Mode of Application | Online |
5 | Benefit | % on FOB Value of Exports |
6 | Condition | Realisation of Sale proceeds within time period allowed by RBI, as per FEMA, 1999 (not necessarily required e-BRC at the time of claiming RoDTEP) |
7 | Quantum of Incentive | Rates as notified in Appendix-4R (% or with Cap) |
8 | Nature of Rebate | e-Scrips |
9 | Usage of e-Scrips | Only for payment of Basic Customs Duty |
10 | Validity of e-Scrips Generation | Two years from the scroll data |
11 | Validity of e-Scrips Utilisation / Sale | Two years from the scrip generation date |
12 | Transferability | Freely Transferable to another IEC holder who has e-ledger (entire duty credit amount at a time, part amount not allowed) |
13 | Initial Cost / Financial Implication | Govt Fees for IEC, Digital Certificate Cost, ICEGATE Registration Cost, RoDTEP Account Credit Ledger Creation, Consultancy Service Charges |
14 | Liability | Over-Claim / Claim based on Mis-declaration / Non-realisation of Export proceedings / Foreign Exchange, Customs may call back RoDTEP Claim alongwith penal interest as applicable. |
Imagine there’s a big club called the WTO, where countries follow certain rules when they trade with each other. India had some special programs that helped its businesses sell things abroad, kind of like giving them a boost. But the USA didn’t like these programs and complained to the WTO, saying they hurt American workers.
Guess what? The WTO agreed with the USA and said India’s special programs were breaking the club’s rules. They told India to stop using these programs. So, India had to come up with a new plan to help its businesses export stuff while following the club’s rules. That’s where RoDTEP comes in.
RoDTEP is like a replacement plan. It helps Indian businesses by giving them some money back for the taxes and fees they pay when they sell things to other countries. This new plan helps India keep the club (WTO) happy and still supports its businesses. It’s like finding a new way to play by the rules and keep everyone happy.
Under the RoDTEP Scheme, taxes and fees that were previously not refundable will now be given back to businesses. These include taxes like Mandi tax, VAT, Coal cess, and Central Excise duty on fuel. Basically, the government is saying, “Hey, we’ll give you some of that money back.”
RoDTEP isn’t just for one type of business; it’s for all kinds of industries, including textiles. They’re making sure that everyone gets a fair shot. Plus, they’ll have a special group to decide how much help each industry should get and when they should get it. It’s like making sure everyone gets a fair piece of the pie.
S.NO Check Points
RoDTEP Refund / Rebate is a Percentage (%) on SB FOB Value, with a value cap per unit of the Exported Product (if applicable)
1 | Export of imported goods covered under para 2.46 of FTP |
2 | Export through transhipment (exports originating in third country) |
3 | Export products which are subject to Minimum Export price or export duty |
4 | Products which are restricted for export under Schedule 2 of Export Policy in ITC (HS) |
5 | Products which are prohibited for export under Schedule 2 of Export Policy in ITC (HS) |
6 | Deemed Exports |
7 | Supplies from DTA to SEZ / FTWZ |
8 | Products manufactured in EHTP and BTP |
9 | Products manufactured party / wholly in warehouse as provided in Section 65 of the Customs Act |
10 | Products manufactured or exported in discharge of export obligation against Advance Authorisation / DFIA |
11 | Products manufactured / exported by EOU |
12 | Products manufactured / exported availing the benefit of Notification No. 32/1997 – Customs dated 01 April 1997 |
13 | Exports from non-EDI port |
14 | Goods taken into use after manufacture |
1 | Mismatch of Export Product Description |
2 | Mismatch of Export Product ITC (HS) Code |
3 | Non-endorsement of Scheme Code in Export Invoice, Shipping Bill / Bill of Export |
4 | Non-endorsement of Intent Declaration as per guidelines in Export Invoice, Shipping Bill / Bill of Export |
5 | Non-selection of RoDTEP in Scheme Reward Column |
To get the benefits of the RoDTEP Scheme, here’s what you need to do:
**1. ICEGATE Portal**: There’s this online place called the ICEGATE Portal, where they keep records of the benefits you can get.
**2. Shipping Bill**: When you send your products out of the country, you need to tell the authorities that you want to use RoDTEP for a specific item. This gets noted in your shipping bill.
**3. Credit Scrips**: This is like a special certificate. You can generate it based on your shipping bill, and it’s what you use to get your benefits.
**4. Claim Process**:
– You declare that you want RoDTEP benefits when filling out your shipping bill.
– After your products are exported, the Customs folks will check your claim.
– They’ll make a list of all the shipping bills that qualify for RoDTEP benefits and put it on the ICEGATE Portal.
**5. Your RoDTEP Account**: You’ll need to log in to the ICEGATE Portal and set up something called a RoDTEP credit ledger account. Think of this like a bank account just for your RoDTEP benefits.
**6. Generate Scrips**: Once your RoDTEP credit ledger account is ready, you can log in and create your credit scrips. These are like vouchers that show you can get benefits.
**7. Using the Benefits**: When you have your credit scrips, you can use them to pay certain taxes and fees, or you can even give them to others who need them.
1. Incentives available on the export of goods |
2. Not compliant with the WTO norms. |
3. 2%-5% of the FOB (Free On Board) value of exports. |
4. Issued in the form of physical transferable scrips. |
| 1. Refund of duties and taxes that are currently not being reimbursed by any other schemes. |
| 2. Compliant with the WTO norms. |
| 3. Product based % is yet to be notified |
| 4. Issued in the form of transferable duty credit or electronic scrips which will be maintained via an electronic ledger. |
**Q: Have the RoDTEP scheme rates been notified?**
A: Yes, the Central Government notified the RoDTEP scheme rates and guidelines on August 17, 2021. These rates vary and can be as low as 0.5% or as high as 4% for different sectors. However, for certain export items, the government has not yet specified the exact rebate amount per unit.
**Q: Which industries are covered under the RoDTEP Scheme?**
A: The RoDTEP scheme covers a wide range of industries. It supports employment-oriented sectors like marine, leather, gems and jewelry, agriculture, among others. It also provides assistance to sectors like electrical/electronics, automobiles, machinery, plastics, and covers the entire value chain of textiles through RoDTEP and RoSCTL (Rebate of State and Central Taxes and Levies).
**Q: Which sectors are currently excluded from the RoDTEP scheme?**
A: Some important sectors currently excluded from the benefits of the RoDTEP scheme are pharmaceuticals, steel, organic and inorganic chemicals, among others.
**Q: How long will the RoDTEP scheme be in effect?**
A: The RoDTEP scheme started on January 1, 2021, and it is expected to continue until 2025 or until a new scheme replaces it. This scheme provides subsidies for all merchandise exports from India, aiming to boost the country’s exports.
Sl No | Document Type |
1 | IEC Copy |
2 | Aadhaar Copy |
3 | PAN Copy |
4 | Valid Digital Certificate – Class III Combo with encryption |
5 | Authorization letter (in case account is registered in name of employee, not required in case of Director) |
1 | RoDTEP Sale |
2 | RoDTEP Purchase |
3 | RoDTEP Scrip generation |
4 | RoDTEP Scheme overview |
5 | RoDTEP Consultants |
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Simran Exim is a professionally managed firm incorporated with the objective of providing premium Import & Export Consultancy Services. We being one of the Premier Indian Export Import Consultancy Companies in Foreign Trade have thorough knowledge and expertise of foreign trade regulations in India, Import-Export Policy and Procedures, Customs Law and Allied regulations.
Simran Exim is a professionally managed firm incorporated with the objective of providing premium Import & Export Consultancy Services. We being one of the Premier Indian Export Import Consultancy Companies in Foreign Trade have thorough knowledge and expertise of foreign trade regulations in India, Import-Export Policy and Procedures, Customs Law and Allied regulations.
Simran Exim is a professionally managed firm incorporated with the objective of providing premium Import & Export Consultancy Services. We being one of the Premier Indian Export Import Consultancy Companies in Foreign Trade have thorough knowledge and expertise of foreign trade regulations in India, Import-Export Policy and Procedures, Customs Law and Allied regulations.
