RODTEP Scheme - Complete Details

The remission of Duties and Taxes on Export Products or RoDTEP scheme was introduced in 2019, which the aim to create a shift in the export industry and create a boost in exports in India. The scheme was introduced as a replacement for the erstwhile Merchandise Exports from India Scheme (MEIS), which lasted from 2015 to 2020. Since the RoDTEP scheme is a relatively new scheme, it is essential to know its constituents in order to analyze its efficiency and novelty.

What is the RoDTEP scheme?

The Commerce Ministry of India launched the RoDTEP scheme in an effort to revitalize and boost the export industry in India by enabling benefits to exporters in the form of rebates. By virtue of this scheme, taxes and duties would be refundable to exporters, whether central or state or imposed. Moreover, the benefits that may be received under the scheme, were made applicable across all types of goods as of January 2021.

Features of the RoDTEP scheme:

The RoDTEP scheme as an export promotion initiative had several distinct features. They are as follows:
  • All-inclusive- The scheme is applicable to all goods and services as of January 1, 2021. Therefore, even previously non-refundable taxes such as Coal cess, excise duty of fuel, and the like, will not be eligible for exporters to obtain relief against. It is a culmination of previous schemes such as the MEIS along with a wider scope.
  • A digitized mechanism- Essential components of clearances, verifications, and processing in relation to the scheme would be entirely carried out through digitized methods. This would highlight the ease of RoDTEP scheme implementation and ensure greater accuracy.
  • RoDTEP Scheme Rates List- The rate at which the refund is granted on duties imposed is to the tune of about point five to four percent of the Free on Board (FOB) value. This value represents the amount that goods are valued at the customs frontier on the exporter’s end. The rate depends on the nature of the tariff line, and the RoDTEP Scheme Rates List is available at the Ministry of Commerce and Industry website under RoDTEP Scheme Rates DGFT (Directorate General of Foreign Trade) as Appendix 4R. 

Eligibility for the RoDTEP Scheme:

  • The most important criteria for eligibility under the scheme is to ensure that the products in question have India and the country of origin. That is, the exported products need to be of Indian origin. The purpose behind such a criterion is self-explanatory since the RoDTEP Scheme aims to promote domestic exports.

  • The scheme is applicable to all sectors in the export industry, and there is no particular threshold that needs to be met in the case of goods in different sectors engaged in domestic exports. 

  • The scheme does not mandate a threshold or a qualifying amount with respect to the turnover for applicants under the RoDTEP Scheme. This makes a greater number of exporters eligible for applying for rebates and refunds under the scheme. 
  • In the process of the scheme, an electronic scrip-based system shall be used wherein the applicants shall be issued electronic scrip cards, which shall be transferable in nature. There shall further be recorded in electronic ledgers and digitized credit verifications.

RoDTEP Scheme Registration

The applicants are required to use the Indian Customs Electronic Gateway (ICEGATE) portal to avail of the RoDTEP Scheme benefits. The applicants shall apply for rebates by specifying details regarding shipping and other particulars related to the exported product. The same portal shall contain particulars regarding the credits availed by the applicant. Since the scrips are transferable, once issued, they may be used to get rebates, pay customs duties, or even be transferred to other persons. 

The major steps in the process include:

  • The exporter shall make a declaration of a claim for scrips on the ICEGATE portal. Shipping bills Such claim needs to include the Electronic Bank Realization Certificate (eBRC), DSC – Class 3, and the Registration Cum Membership Certificate (RCMC)
  • The Export General Manifest is filed and processed.
  • Once processed, shipping bills in relation to the exported products are made available on the portal.
  • The applicant needs to create their credit ledger account such processing.
  • Electronic scrips may be generated using the ledger account and used according to the user’s choice. They may use it to generate refunds or pay other imports or substitute them against other custom duties since they are transferable.
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