To improve economic growth and global competitiveness, India has seen a notable emphasis on strengthening its export sector in recent years. Remission of Duties and Taxes on Exported Products The RoDTEP Scheme is a key initiative launched by the Indian government to assist exporters. By returning duties and taxes paid on the export of goods, the program seeks to level the playing field for exporters and promote trade. This article explores the intricacies of the RoDTEP program, including its goals, and possible effects on India’s export market.
What is RoDTEP?
Remission of Duties and Taxes on Export Products, or RoDTEP for short, is an export promotion program run by the Indian government. The program, which went into effect on January 1, 2021, attempts to balance the taxes and duties paid on exported goods. It ensures that goods made in India are competitive by lowering the input cost of exported goods.
Refunds are available for all federal, state, and local duties, taxes, and levies on exported goods under the RoDTEP program. This includes total indirect taxes from earlier stages of production as well as direct and indirect costs paid by the exporters. The aim is to make up for the duties, taxes, and levies imposed on products and services utilized in the manufacturing and shipment of goods abroad.
Features of the RoDTEP Scheme
- Refund of the previously non-refundable duties and taxes: Under this specific scheme, there will be a refund of Mandi tax, VAT, coal cess, central excise duty on fuel, etc. The RoDTEP Scheme now includes all of the items covered by the MEIS and the RoSCTL (Rebate of State and Central Taxes and Levies).
- Automated system of credit: The reimbursement shall be furnished as tradable electronic scrips. An electronic ledger will be used to track and maintain these duty credits.
- Quick verification through digitization: With the advent of the digital platform, clearance occurs considerably more quickly. To guarantee efficiency and precision in transaction processing, an IT-based risk management system will be used to verify the exporters’ records.
- Multi-sector scheme: All industries, including the textile industry, are covered by RoDTEP to guarantee uniformity throughout. Furthermore, a committee will be established specifically to determine the order in which the scheme will be introduced to the different sectors, the extent of benefit that each sector will receive, and other related issues.
Eligibility for the RoDTEP Scheme
- The program is open to both merchant exporters, traders, and manufacturers exporters.
- Benefits are available to export-oriented units (EOUs) and units in special economic zones (SEZs).
- The program also covers goods exported through e-commerce platforms and courier services.
- Only products of Indian origin are eligible for benefits under the scheme; re-exported products are not.
- To be eligible to receive benefits from the RoDTEP scheme, there is no set turnover threshold.
- Labor-intensive industries that currently receive benefits under the MEIS will be given priority under the plan.
- The benefits extend to most industries, including textiles, though some industries—like steel, pharmaceuticals, and organic and inorganic chemicals—can’t.
Availing Benefits Under the RoDTEP Scheme
- In the shipping bill, the exporter must declare their claim for RoDTEP.
- Following the filing of the Export General Manifest (EGM), Customs will handle the claim.
- It is recommended that the exporter establish a RoDTEP credit ledger account by logging into the ICEGATE portal.
- The exporters can generate scrips by selecting the appropriate shipping bills after logging into their accounts and creating the RoDTEP credit ledger account.
- Following the claim’s processing, a scroll containing each Shipping Bill for the allowable amount will be created and made accessible in the user’s ICEGATE portal account.
FAQs for RoDTEP Scheme
Q1. What is RoDTEP’s complete full form?
The Remission of Duties and Taxes on Export Products is the complete name of the RoDTEP program.
Q2: Which industries are not currently eligible for the RoDTEP scheme’s benefits?
At the moment, industries like steel, pharmaceuticals, and organic and inorganic chemicals are not eligible to receive benefits from this program.
Q3. Does the RoDTEP program adhere to WTO rules?
The answer is that this plan complies with World Trade Organization (WTO) rules.