Remission of Duties or Taxes on Export Products
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 (Merchandise Exports from India Scheme). The scheme will ensure that the exporters receive the refunds on the embedded taxes and duties previously non-recoverable. The scheme was brought about with the intention to boost exports which were relatively poor in volume previously.Need for the RoDTEP Scheme---
The US had challenged India’s key export subsidy schemes in the WTO (World Trade Organisation), claiming them to harm the American workers. A dispute panel in the WTO ruled against India, stating that the export subsidy programmes that were provided by the Government of India violated the provisions of the trade body’s norms. The panel further recommended that the export subsidy programmes be withdrawn. This led to the birth of the RoDTEP Scheme, so as to ensure that India stays WTO-compliant.
Automated system of credit--
The refund will be issued in the form of transferable electronic scrips. These duty credits will be maintained and tracked through an electronic ledger.
Quick verification through digitisation--
Through the introduction of the digital platform, the clearance happens at a much faster rate. Verification of the records of the exporters will be done with the help of an IT-based risk management system to ensure speed and accuracy of transaction processing.
Eligibility to obtain benefits of the RoDTEP Scheme--
* 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.
* Manufacturer exporters and merchant exporters (traders) are both eligible for the benefits of this scheme.
* There is no particular turnover threshold to claim the RoDTEP.
* Re-exported products are not eligible under this scheme.
* To be eligible to avail the benefits of this scheme, the exported products need to have the country of origin as India.
* Special Economic Zone Units and Export Oriented Units are also eligible to claim the benefits under this scheme.
Availing benefits under RoDTEP Scheme--
The process for the generation and claiming of scrips under the RoDTEP scheme are as follows-
* The exporter should make a declaration of the claim for RoDTEP in the shipping bill.
* Once the Export General Manifest (EGM) is filed, the claim will be processed by the Customs.
* After processing the claim, a scroll with all individual Shipping Bills for the admissible amount will be generated and available in the users account at ICEGATE portal.
* The exporter should log in to the ICEGATE portal and create a RoDTEP credit ledger account.
* 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.
* Once, the scrips are generated, the refund will be credited and reflected in the exporter’s ledger account and will be available for utilisation in payment of the eligible duties and during imports or for transfer to any other importers.