RoDTEP Scheme
Claim your export incentives under Remission of Duties and Taxes on Export Products (RoDTEP) Scheme
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RoDTEP Scheme
Remission of Duties and Taxes on Export Products(RoDTEP)
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WHAT IS RoDTEP?
The scheme shall apply with effect from 1st January, 2021 for the reimbursement of duties and taxes to all eligible exports of goods. The RoDTEP scheme would refund to exporters the embedded Central, State and Local duties/taxes that were not being refunded, placing our exports at a disadvantage.
The RoDTEP Scheme aims to refund all those hidden taxes and levies for example:
- Central and State taxes on fuel (Petrol, Diesel, CNG, PNG, and coal cess, etc.) used for transportation
- The duty levied by the state on electricity used for manufacturing,
- Mandi tax levied by APMC’s
- Toll tax & Stamp duty on the impot-export documentation etc.
WHEN INTRODUCED:
On 1st February 2020, the Finance Minister introduced RoDTEP Scheme for the exporters to make Indian products cost competitive and to create a level playing field for them in the global markets. The scheme will be implemented from January 2021 and will be continued till 2025 thereafter replacing the existing MEIS Scheme.
RATE OF REBATE:
Government announced RoDTEP rates on 17th August 2021 covering most of the sectors. However, Pharmaceutical, Chemical, and Iron & Steel sectors were completely excluded from RoDTEP Incentives.
On 7th December 2022, Government extended RoDTEP benefits to Pharmaceutical, Chemical, and Iron & Steel sectors.
The rate of reward varies from sector to sector ranging from 0.5% to 4.3%.
PROCESS OF DOCUMENTATION:
PROCESS OF CLAIMING RoDTEP:
An exporter desirous of availing the benefit shall declare his intention for each export item in the Shipping Bills/ Bill of Export.
Based on the declaration system will process claims eligible for RoDTEP.
The Shipping Bills with RoDTEP/ Drawback Claim will either come to the officer for processing or be routed directly to the exporter’s scroll queue without any officer intervention. An option to suspend RoDTEP Scrip will also be made available after scroll generation is enabled.
UTILIZATION OF SCRIPS:
Scrip can be used for payment of basic custom duty on imported goods. The credits can also be transferred to other importers.
WHAT WE DO:
We are a team of highly motivated DGFT professionals providing DGFT services like MEIS/SEIS/EPCG/Advance Authorisation/Redemption and Closure of Licences for more than 30 years.
Our highly qualified team is constantly updating themselves with the Foreign Trade Policies so that we can give a wholesome advice to our clients regarding their concerns and guide them from document preparation to obtaining the Licence in hand. We also provide services under RoDTEP Scheme.
Frequently Asked Questions
All you need to know before applying for RoDTEP Scheme:
Remission of Duties or Taxes on Export Products (RoDTEP) is a Scheme for the Exporters to make Indian products cost-competitive and create a level playing field in the Global Market.
The Finance Minister Nirmala Sitharaman had announced that, the Scheme for Reversion of duties and taxes on export products will be launched in her Budget Speech on 1st February 2020, and consequently, the RoDTEP Scheme was approved by the Union Cabinet on 13th March 2020. It came in effect from 1st January 2021.
RoDTEP scheme will replace the existing MEIS scheme and it will also replace the existing RoSCTL scheme for the apparel and made-ups sector.
Remission of Duties or Taxes on Export Products (RoDTEP):
- Scheme for exporters to reimburse taxes and duties paid by them such as VAT, Mandi tax, electricity duties, and the fuel used for transportation etc.
- WTO Norms Compliant Scheme
Merchandise Exports from India Scheme (MEIS):
- MEIS is the additional export incentive scheme under which 2% – 5% of the FOB value of eligible export given as a reward to the exporters
- Incompliant with WTO Norms
The RoDTEP Scheme came in effect from 01/01/2021.
No, RoDTEP and MEIS cannot be claimed simultaneously. The RoDTEP scheme replaced MEIS scheme completely.
The benefit under RoDTEP would be in the form of transferable duty credit scrip, or it may be in the form of electronic scrip which will be maintained in the electronic ledger.
RoDTEP scheme will be applicable to all the sectors. There will be a single scheme for all the sectors after discontinuation of MEIS scheme.
The rate of benefit under RoDTEP scheme is expected to be more or less similar to the existing MEIS scheme.
RoDTEP Scheme is expected to continue till 2025.
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