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About RoDTEP Scheme

RODTEP Scheme 


RoDTEP stands for Remission of Duties and Taxes on Export Products. It is a brand new scheme this is relevant with impact from January 1st, 2021, fashioned to update the present MEIS (Merchandise Exports from India Scheme). The scheme will make certain that the exporters acquire the refunds at the embedded taxes and obligations formerly non-recoverable. The scheme became delivered approximately for you to enhance exports which have been surprisingly bad in quantity formerly. 

 


Need for the RoDTEP Scheme


The US had challenged India`s key export subsidy schemes withinside the WTO (World Trade Organisation), claiming they damaged the American workers. A dispute panel withinside the WTO dominated in opposition to India, pointing out that the export subsidy programs that have been furnished via way of means of the Government of India violated the provisions of the alternate body`s norms. The panel in addition advocated that the export subsidy programs be withdrawn. This caused the beginning of the RoDTEP Scheme, intending to make certain that India remains WTO-compliant.

 
The following have been a number of the export subsidy programs advocated to be withdrawn:- 


• Merchandise Exports from India Scheme
• Export Oriented Units Scheme
• Electronics Hardware Technology Parks Scheme
• Bio-Technology Parks Scheme
• Export Promotion Capital Goods Scheme
• Special Economic Zones (SEZ) Scheme
• Duty-Free Imports for Exporters Scheme
 

Features of the RoDTEP Scheme


Refund of the formerly non-refundable obligations and taxes


Mandi tax, VAT, Coal cess, Central Excise responsibility on gasoline, etc. will now be refunded below this unique scheme. All the objects below the MEIS and the RoSTCL (Rebate of State and Central Taxes and Levies) are actually below the purview of the RoDTEP Scheme. 

 


Automated device of credit score


The refund might be issued withinside the shape of transferable digital scrips. These responsibility credits might be maintained and tracked thru a digital ledger. 

 


Quick verification thru digitization


Through the creation of the virtual platform, the clearance occurs at a miles quicker price. Verification of the statistics of the exporters might be finished with the assistance of an IT-primarily based danger control device to make certain pace and accuracy of transaction processing. 

 


Multi-quarter scheme


Under RoDTEP, all sectors, which includes the textiles quarter, are covered, to make certain uniformity throughout all areas. Additionally, a devoted committee might be installation to determine concerning the collection of creation of the scheme throughout the numerous sectors, what diploma of advantage is to be prolonged to every quarter, and such associated matters. 

 


Eligibility to reap advantages of the RoDTEP Scheme

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• All sectors, which includes the textiles quarter, may also experience the advantages of the RoDTEP Scheme. Labor-in-depth sectors that experience advantages below the MEIS Scheme might be given a priority.
• Manufacturer exporters and service provider exporters (traders) are each eligible for the advantages of this scheme.
• There isn't any unique turnover threshold to say the RoDTEP.
• Re-exported merchandise isn't eligible below this scheme.
• To be eligible to avail the advantages of this scheme, the exported merchandise wants to have us of an of foundation as India.
• Special Economic Zone Units and Export Oriented Units also are eligible to say the advantages below this scheme.
• Where items had been exported thru courier thru e-trade platforms, the RoDTEP scheme applies to them as well.

 


Availing advantages below RoDTEP Scheme


The ICEGATE portal (Indian Customs Electronic Gateway) will incorporate the info concerning the credit availed via way of means of the exporter. At the port, the exporter ought to imply withinside the delivery invoice the info concerning the declaration of the RoDTEP advantage in regards to a specific object of export and generate a credit score scrip for it. These credit score scrips are then used to pay primary customs obligations, declare rebates, or may be transferred to different importers, because the case may also be. 


The procedure for the era and claiming of scrips below the RoDTEP scheme are as follows- 

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• The exporter ought to make a statement of the declaration for RoDTEP withinside the delivery invoice.
• Once the Export General Manifest (EGM) is filed, the declaration might be processed via way of means of the Customs.
• After processing the declaration, a scroll with all person Shipping Bills for the admissible quantity might be generated and be had withinside the customers account at the ICEGATE portal.
• The exporter ought to log in to the ICEGATE portal and create a RoDTEP credit score ledger account.
• After the RoDTEP credit score ledger account is created, the exporters can log in to their bills and generate scrips via way of means of deciding on the applicable delivery bills.
• Once, the scrips are generated, the refund might be credited and meditated withinside the exporter`s ledger account and might be to be had for utilization in charge of the eligible obligations and the course of imports or switch to some other importers.


Currently, the price of responsibility of remission for the goods below the RoDTEP scheme isn't but notified via way of means of the Government of India.

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                                                                                         RoDTEP vs MEIS

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1. Available incentives for exporting products

 


2. Non-compliant with WTO standards.
 

3. 2% to 5% of the value of shipments FOB (Free On Board).


4. Physically transferrable scrips are used to issue the certificates.

1. Reimbursement of duties and taxes that are not currently covered by any other plan.


2. WTO standards are followed.


3. The percentage based on product has yet to be announced.


4. Transferable duty credit or electronic scrips will be issued, and an electronic ledger will be used to keep track of them.

  • Is it true that the RoDTEP scheme rates have been announced?
    The RoDTEP programme tariffs and guidelines were announced by the Central Government on August 17, 2021. Rates of 0.5 percent, 1.4 percent, 2.4 percent, and 4 percent have been notified under the RoDTEP programme for many sectors. The government, on the other hand, has yet to provide a specific amount of rebate per unit for certain export commodities.
  • What industries are included in the RoDTEP programme?
    The RoDTEP strategy encompasses job-creating industries such as maritime, leather, gems and jewellery, agricultural, and so on. Other industries that will benefit include electrical/electronics, vehicles, machinery, polymers, and so on. The RoDTEP and RoSCTL (Rebate of State and Central Taxes and Levies) programmes apply to the full textile value chain.
  • What are the sectors that are now excluded from the RoDTEP programme?
    Pharmaceuticals, steel, organic and inorganic chemicals, and other key industries are now excluded from the RoDTEP scheme's benefits.
  • What documents are needed to apply for the RoDTEP Scheme?
    The following are the documentation needed to apply for the RoDTEP Scheme: Invoices for shipping Certificate of Electronic Bank Receipt (eBRC) DSC – Cum Membership Certificate for Class 3 Registration DSC – Class 3 Registration DSC – Class 3 Registration DSC (RCMC)
  • What is the duration of the RoDTEP scheme?
    On January 1, 2020, the RoDTEP system went into force. The RoDTEP programme will run until 2025, or unless a new programme is implemented to replace it. The RoDTEP scheme subsidises all of India's merchandise exports.
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