img
../assets/images/media/kr/0.png

An overview of the Remission of Duties and Taxes on Exported Products (RoDTEP)

Remission of Duties and Taxes on Exported Products(RoDTEP) is a fresh scheme that government has launched. It is meant for replacing the present MEIS scheme for exporting goods from India. The scheme is meant for helping the exporters for MEIS was declared through a press release on 31stDecember 2020. This was effective from 1stJanuary 2021 for export products. However, the notification from DGFT and MOF is still in wait.

The scheme will empower local industry, as well as the Indian exports. It thus provides a stage operating field for producers in India in global market. This is to ensure that the local taxes do get out of the nation. Additionally, the execution of the scheme will be completely over digital.

The scheme would pay the included taxes back to the exporters those were not being refunded earlier. Fuel VAT meant for transportation, Mandi tax, electricity tax, etc. can be good examples. These would be fulfilled for reimbursement within RoDTEP scheme. Claim of refund will be made in the form of a percentage of Freight on Board worth of exports.

Exporters interested in enjoying the advantages of RoDTEP scheme will be essential for making the intentions apparent for every export product within shipping or export bill. The scheme will be granted within stipulated norms and exclusions. But, the rates are not going to be declared. But, these rates will be sent through a notification in future, which will be effective from 1stJanuary 2021.

After the notification for rates appears, System would do calculate the RoDTEP worth automatically for entire things in which claims of RoDTEP were made. No variations in a claim will be granted post-filing the general export manifest.

Who are qualified for the scheme?

  • 1. The Scheme will cover each sector, including textile, where prominence remains for labour focussed segments that are grabbing advantages as per MEIS Scheme at two, three, and five percent of export value.

  • 2. Merchant exports or traders, as well as manufacturer exporter, do hold eligibility

  • 3. There remains no nominal criterion for turnover for claiming RoDTEP

  • 4. Gods that are exported from ecommerce mode through courier also do hold eligibility

  • 5. India should be the nation where exported products were originated. The products exported back won’t be eligible.
Larger provisions are as follows

  • 1. For obtaining the scheme, the exporter has to claim for RoDTEP within shipping bill upon declaring

  • 2. Post fling export general manifest or EGM, Custom processes the claims

  • 3. Post-processing a scroll along entire distinct Shipping Bills for acceptable amount will be made and delivered within user account through ICEGATE.

  • 4. User can develop RoDTEP credit ledger upon going through Credit Ledger section. IECs having registered over ICEGATE through DSC can do this.

  • 5. An exporter can log in with the account and create scrip post selecting the applicable shipping bill.

Advantages
  • 1. The scheme would reimburse the fixed taxes at central, local, and state level those were not being refunded earlier.

  • 2. The reimbursement will be credited within the ledger account of exporter with Customs and was paying Basic Custom duties over goods imported. One can deliver the credit to different importers, like MEIS/SEIS scrip.

Other crucial aspects

  • 1. The scheme is not applicable for the service export; nothing rationale or nothing reasoning. Only those exporters who export as per Duty DBK and Special Adv. Authorization scheme does hold eligibility.

  • 2. There is no need for distinct Code or Serial Number for having advantages of scheme. RITC code provided within the shipping bill can be sufficient.

  • 3. Categories that don’t eligible:Exports by SEZ, EOUs, Advance Authorisation, and Jobbing etc. are not eligible. Various categories not eligible for MEIS may also be put within the category for the scheme. But, there isno clarification on it yet. However, the clarification on 15th January 2021 by SEZ Division, Department of Commerce ensured that when an SEZ goes for filing the bill of shipping under the scheme, then it will be acknowledged post citing the below in remark section:

“Shipping Bill filed under RoDTEP scheme if applicable to SEZ unit andamp; and subject to such conditions as prescribed, including the product coverage”

When the exports through SEZ fall within RoDTEP, the same can be considered as part of RoDTEP.

Declaration over shipping bill is essential for claiming. INFO CODE within Table SW_INFO_TYPE of the Shipping Bill must be cited as:

a. RODTEPY – when RoDTEP is obtained
b. RODTEPN- if RoDTEP is not obtained

In case RODTEPY is not particularly provided within the Shipping Bill, no RoDTEP would accumulate to the exporter

  • 1. For each element with RODTEPY claim in INFO CODE, one needs to declare within Statement Table of the Shipping Bill (a portion of it is provided later). No variation would be permitted within the claim post- EGM filing.

  • 2. As for MEIS scrip, the scheme scrip can be delivered as well. The user who is delivered with the scrip is essential to obtain an authorised account for credit ledger.

  • 3. Any issues confronted may be highlighted in the notice of the Deputy Commissioner of Customs in-charge of Drawback.

Issues that must be addressed by RoDTEP Advisory

1. Transitional method for covering those aspects having shipping bills filed prior 31st December 2020, but LEO issued on or before 1st January 2021 having no need of RoDTEP declaration or the Code RODTEPY.

2. Let the advantage of RoDTEP for shipment over courier and post office of foreign nation upon doing modification of CSB-V and PBE-2

3. Provide clarification that one can claim RoDTEP even though exporter has obtained EPCG as RoDTEP advantages have no relation with Capital Goods.

4. Give it out the requirement of keeping the scheme declaration within the shipping bill, and let the advantage with no declaration, as notification of RoDTEP rates provided afterwards.

5. Instant declaration of RoDTEP prices for the entire product thus to avoid uncertainty and let the trade to issues such worth through the course of negotiation or implementing fresh orders.

Comparing MEIS and RoDTEP

DetailMEISRoDTEP
Schema of Incentive
Additional Incentive on Exports of goods, other than the refunds and issues present on undertaking the cited exports
Refund of Indirect taxes on Inputs applied in manufacturing the products exported that is not refunded presently by other available schemes
WTOComplianceNot meeting the trade norms of WTOMeets well with WTO trade norms
Incentive Percentage2% to 5% of FOB value of Exports.Product-based %–[To be notified later]
Mode of Issuance
It is issued in scrip that can be transferred, or in Hardcopies
It is issued in transferable duty credit/ electronic scrip that will be kept in electronic ledger.

As of present, the users can go for logging the ICEGATE account and develop a RoDTEP Credit Ledger Account, considering the provision of scrip generation will be made active upon issuing respective notification by the department, and as per the available budget.

Annexure:

Annexure 1:ICEGATE hasprovided advisory to each of the users for doing registration at ICEGATE.

https://www.icegate.gov.in/Download/v1.2_Advisory_Registration_APPROVED.pdf

Annexure 2:Thorough stepwise guide available for users for generating credit ledger account, create scrip and deliver the same to any of the IECs.

https://icegate.gov.in/Download/RoDTEP_Advisory-v3.0.pdf

Annexure 3:Execution of RoDTEP Scheme in Customs Automated System–Declarations in

Shipping Bill and further processing:

https://icegate.gov.in/Download/RoDTEP_Advisory-v3.0.pdf (page 15-17)

Annexure 4:Declaration to be made integral to the shipping bill or export bill for exporting the goods within RoDTEP scheme:

“I/We, with respect to my/our claim within RoDTEP scheme made in this Bill of Export or Shipping Bill, hereby do declare:

1. I/We do the undertaking of meeting with provisions that include norms, constraints, exclusions and time restrictions as cited within RoDTEP scheme, and applicable notification, regulation, etc., as introduced in regular interval.

2. Any claim made within the shipping bill or bill of export is not in accordance with any duties or taxes or levies that are relaxed or discounted or exempted as part of any other model than RoDTEP.

3. I/We do undertake for keeping and making applicable documents available in relation to the goods exported intended towards auditing in this way and for the duration cited within the Customs Audit Regulations, 2018.



Disclaimer:
Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

Related Knowledge

Enhance your knowledge with chakdebiz.com

Subscribe To Our Newsletter

To get the latest news on changes of compliance