RODTEP Scheme (Remission of duties and Taxes on export products)

About:

RoDTEP stands for Remission of Duties and Taxes on Export Products. It is a new scheme that is applicable with effect from January 1st, 2021, formed to replace the existing MEIS Scheme. The scheme will ensure that the exporters receive refunds on the embedded taxes and duties previously non-recoverable.

Benefits of RoDTEP Scheme:

1. Refund of previously non-refundable duties and taxes.
2. The automated system of credit through credit ledger.
3. Quick verification through digitization.

Eligibility to obtain benefits of the RoDTEP Scheme:

1. All sectors, including the textiles sector, may enjoy the benefits of the RoDTEP Scheme. Labor-intensive sectors that enjoy benefits under the MEIS Scheme will be given a priority.
2. Manufacturer exporters and merchant exporters (traders) are both eligible for the benefits of this scheme.
3. There is no particular turnover threshold to claim the RoDTEP.
4. Re-exported products are not eligible under this scheme.
5. To be eligible to avail of the benefits of this scheme, the exported products need to have the country of origin as India.
6. Special Economic Zone Units and Export Oriented Units are also eligible to claim the benefits under this scheme.
7. Where goods have been exported via courier through e-commerce platforms, RoDTEP scheme applies to them as well.

Important Points to avail benefits:

1. The exporter should make a declaration of the claim for RoDTEP in the shipping bill.
2. Once the Export General Manifest (EGM) is filed, the claim will be processed by the Customs.
3. After processing the claim, a scroll with all individual Shipping Bills for the admissible amount will be generated and available in the user’s account at the ICEGATE portal.
4. The exporter should log in to the ICEGATE portal and create a RoDTEP credit ledger account.
5. After the RoDTEP credit ledger account is created, the exporters can log in to their accounts and generate scrips by selecting the relevant shipping bills.
6. Once, the scrips are generated, the refund will be credited and reflected in the exporter’s ledger account and will be available for utilization in payment of the eligible duties and during imports or for transfer to any other importer

About the rate of duty remission:

Currently, the rate of duty of remission for the products under the RoDTEP scheme is not yet notified by the Government of India but in MEIS it was 2% – 5% of the FOB value of exports.

 For queries, you may post on rajnikant@rmpsco.com

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