RoDTEP Scheme – The Government of India formally unveiled the RoDTEP scheme on January 13, 2020, in a press release. RoDTEP is a component of a larger strategy to boost exports, trade, and government revenue in India. The Modi Administration doubled duty-free exports for six months (to 12 months) before launching the program. The MEIS (Merchandise Exports from India Scheme) and ROD/VAT Remission Scheme, which were previously accessible to exporters under various categories, are extended by the scheme. However, these are now produced as a single package.
What is RoDTEP Scheme ?
The remission of Duties and Taxes on Exported Products, or the RoDTEP scheme, is a recently developed initiative by the Indian Government to better support exporters. The old MEIS scheme was replaced by this one on January 1, 2021, the day it was first formally announced in the press. The major objective of the program is to compensate all exporters for taxes and tariffs that were previously not reimbursable. This promotes international trade and offers new benefits to exporters who ship goods outside of India. Regarding exporting simplicity and recouping import substitution funds, the strategy is particularly advantageous for small and medium-sized firms. Because it increases the amount of time it takes to clear the documents from 10 days to 1 month, the scheme is also advantageous to exporters. This program also enables tax savings and duty refunds for exported products and services.
RoDTEP Scheme Details in Highlights
| Name | RoDTEP Scheme |
| Initiated by | The Government of India |
| Introduced on | January 13, 2020 |
| Objective | to boost exports, trade, and government revenue in India |
| Official Website | https://www.icegate.gov.in/ |
RoDTEP Scheme Objectives
Some of the main objectives of the RoDTEP Scheme are as follows:
- The Scheme’s goal is to reimburse amounts that are currently unpaid
- Duties, taxes, and levies paid at the federal, state, and local levels on the exported product, including any cumulative indirect taxes paid at a previous stage on the commodities and services used in its creation.
- These indirect duties, taxes, and levies are related to the sale of the exported goods.
- The refund under the Scheme will not apply to duties and taxes that have previously been waived, remitted, or credited.
Features and Benefits of the RoDTEP Scheme
Some of the key features and benefits of the RoDTEP Scheme are as follows:
- RoDTEP Scheme is suitable for all industries.
- It includes all central, state, and municipal taxes and charges that are not covered by another system. The RoDTEP now contains items that were formerly under the MEIS and the RoSCTL.
- Exporters will receive refunds in the form of electronic checks or transferrable duty credits, and they will be recorded in a computerized ledger.
- On imported goods, this can be used to pay the minimal customs duty. Other importers may also receive the credits.
- A monitoring and audit system with an IT-based risk management system that would physically verify the exporters’ records will enable faster clearance through a digital platform.
Relevance of RoDTEP
The RoDTEP program was started to boost exports and associated revenue for the Indian government. This is demonstrated by the government’s endorsement and its registration with the Indian Ministry of Commerce. The MEIS and VAT Remission Scheme, which exporters mostly utilize, have been replaced by the new program. The new approach will facilitate commerce by enabling exporters to claim their export-related tax benefits more effectively and broadly.
RoDTEP Scheme Eligibility Criteria
The applicants applying for RoDTEP Scheme must fulfill the following eligibility criteria:
- This scheme covers all industries. Priority will be given to sectors that require a lot of labor
- For receiving benefits under the scheme, there is no minimum turnover requirement.
- The program is open to both manufacturer exporters and merchant exporters (traders).
- For the exported goods to qualify for the program’s benefits, India must be their nation of origin.
- This scheme applies to products dispatched by courier using online shopping carts.
- Units in special economic zones and units focused on exports are also acceptable.
Required Documents for RoDTEP Scheme
Some of the important documents required for the RoDTEP Scheme are as follows:
- Shipping Bills
- Digital Signature Certificate (DSC) – Class 3
- Electronic Bank Realization Certificate (eBRC)
- Registration cum Membership Certificate (RCMC)
RoDTEP Scheme Rates
A Committee in the Department of Revenue’s Drawback Division, with the appropriate representation from the DoC and DGFT, line ministries, and experts, shall decide the ceiling rates under the Scheme for the sectors that the Departments of Commerce and Revenue have prioritized. The Ministry of Finance, in collaboration with the Department of Commerce (DoC), would finalize the overall budget/outlay for the RoDTEP Scheme while taking into account all pertinent variables.
Tax Refund Rates
On the export of goods falling under the notified 8-digit HS Code, a rebate will be given to qualified exporters under the Scheme at a rate that has been announced as a percentage of FOB value with a value cap per unit of the exported product, where necessary. A specific amount of rebate per unit may also be announced for some export commodities. According to APPENDIX 4R, rates of rebate and value cap per unit under RoDTEP will be notified.
Supplies, Items, and Categories that are Ineligible for the Scheme
Under the RoDTEP Scheme, the following export categories and exporters are ineligible for rebates:
- Imported goods exported under FTP’s paragraph 2.46
- Products exported that must meet a minimum export price or export duty
- Exports via trans-shipment, or exports coming from a third nation but being trans-shipped through India
- Products that are listed on Schedule 2 of the ITC (HS) Export Policy as being forbidden from export
- Products that are prohibited from export under Schedule 2 of the ITC (HS) Export Policy
- Deemed Exports
- Products made by DTA units are supplied to SEZ/FTWZ units.
- Goods produced with EHTP and BTP
- Products made at a warehouse under Section 65 of the Customs Act of 1962 (52 of 1962)
- Products produced or exported in fulfillment of an export obligation against a Special Advance Authorization, Duty-Free Import Authorization, or Advance Authorization issued under a duty exemption scheme of relevant Foreign Trade Policy
- Products produced or exported by any units housed within a Free Trade Zone, an Export Processing Zone, or a Special Economic Zone
- Items produced or exported by a facility that has been granted a license as a fully export-oriented unit (EOU) under the Foreign Trade Policy
- Exports for which no ICEGATE EDI electronic documentation has been created or exports from non-EDI ports
- Products produced or exported while utilizing Notification No. 32/1997-Customs, which was issued on April 1 of that year.
- Products that have been used since their creation RoDTEP Scheme Rules
Steps to Apply for RoDTEP Scheme
To apply for RoDTEP Scheme, the user needs to follow the below-given steps:
- First of all, go to the official website of ICE Gate i.e., https://www.icegate.gov.in/
- The homepage of the website will open n the screen
- Now, fill in the application form using a Class 3 Individual type Digital Signature Certificate
- After that, attach all the required documents
- Finally, submit the application form