RoDTEP Scheme:- The Government of India formally unveiled the RoDTEP Scheme on February 13, 2020, in a press release. RoDTEP is part of a major corridor for raising exports, trade and government revenue in India. The Modi government doubled duty-free exports for six months (from 12 months) before launching the scheme.

MEIS (Export of Goods from India Scheme) and ROD/VAT Exemption Scheme which were earlier available to exporters in different categories have been extended to the scheme but these are now treated as single items.

RoDTEP Scheme Details in Highlights

RoDTEP Scheme Objectives

1. The Scheme’s goal is to reimburse amounts that are currently unpaid
2. Duties, taxes, and levies paid at the federal, state, and local levels on the exported product, including any cumulative indirect taxes paid at a previous stage on the commodities and services used in its creation.
3. These indirect duties, taxes, and levies are related to the sale of the exported goods.
4. The refund under the Scheme will not apply to duties and taxes that have previously been waived, remitted, or credited.

Features and Benefits of the RoDTEP Scheme 2024

1. RoDTEP Scheme is suitable for all industries.
2. It includes all central, state, and municipal taxes and charges that are not covered by another system. The RoDTEP now contains items that were formerly under the MEIS and the RoSCTL.
3. Exporters will receive refunds in the form of electronic checks or transferrable duty credits, and they will be recorded in a computerized ledger.
4. On imported goods, this can be used to pay the minimal customs duty. Other importers may also receive the credits.
5. A monitoring and audit system with an IT-based risk management system that would physically verify the exporters’ records will enable faster clearance through a digital platform.

Relevance of RoDTEP

The RoDTEP program was started to boost exports and associated revenue for the Indian government. This is demonstrated by the government’s endorsement and its registration with the Indian Ministry of Commerce. The MEIS and VAT Remission Scheme, which exporters mostly utilize, have been replaced by the new program. The new approach will facilitate commerce by enabling exporters to claim their export-related tax benefits more effectively and broadly.

RoDTEP Scheme Eligibility Criteria

Required Documents for RoDTEP Scheme  

1. Shipping Bills
2. Digital Signature Certificate (DSC) – Class 3
3. Electronic Bank Realization Certificate (eBRC)
4. Registration cum Membership Certificate (RCMC

RoDTEP Scheme Rates

A Committee in the Department of Revenue’s Drawback Division, with the appropriate representation from the DoC and DGFT, line ministries, and experts, shall decide the ceiling rates under the Scheme for the sectors that the Departments of Commerce and Revenue have prioritized. The Ministry of Finance, in collaboration with the Department of Commerce (DoC), would finalize the overall budget/outlay for the RoDTEP Scheme while taking into account all pertinent variables.

Supplies, Items, and Categories that are Ineligible for the Scheme

1. Imported goods exported under FTP’s paragraph 2.46
2. Products exported that must meet a minimum export price or export duty
3. Exports via trans-shipment, or exports coming from a third nation but being trans-shipped through India
4. Products that are listed on Schedule 2 of the ITC (HS) Export Policy as being forbidden from export
5. Products that are prohibited from export under Schedule 2 of the ITC (HS) Export Policy
6. Deemed Exports
7. Products made by DTA units are supplied to SEZ/FTWZ units.
8. Goods produced with EHTP and BTP
9. Products made at a warehouse under Section 65 of the Customs Act of 1962 (52 of 1962)
10. Products produced or exported in fulfillment of an export obligation against a Special Advance Authorization, Duty-Free Import Authorization, or Advance Authorization issued under a duty exemption scheme of relevant Foreign Trade Policy
11. Products produced or exported by any units housed within a Free Trade Zone, an Export Processing Zone, or a Special Economic Zone
12. Items produced or exported by a facility that has been granted a license as a fully export-oriented unit (EOU) under the Foreign Trade Policy
13. Exports for which no ICEGATE EDI electronic documentation has been created or exports from non-EDI ports
14. Products produced or exported while utilizing Notification No. 32/1997-Customs, which was issued on April 1 of that year.

Steps to Apply for RoDTEP Scheme 2024

• First of all, go to the official website of ICE Gate i.e., https://www.icegate.gov.in/
• The homepage of the website will open n the screen

• Now, fill in the application form using a Class 3 Individual type Digital Signature Certificate
• After that, attach all the required documents
• Finally, submit the application form

 FaQ

 Q1: What is the RoDTEP Scheme?

A1: The RoDTEP (Remission of Duties and Taxes on Export Products) Scheme is a government initiative aimed at reimbursing exporters for various embedded taxes and levies that are not refunded under any other mechanism. This scheme was introduced to boost exports, trade, and government revenue in India.

Q2: When was the RoDTEP Scheme launched?

A2: The RoDTEP Scheme was formally unveiled on February 13, 2020, by the Government of India.

Q3: What are the objectives of the RoDTEP Scheme?

• To reimburse exporters for duties, taxes, and levies paid at the federal, state, and local levels that are not otherwise refunded.
• To cover cumulative indirect taxes paid on goods and services used in the production of exported products.
• To enhance the competitiveness of Indian exports in global markets

Q4: What are the features and benefits of the RoDTEP Scheme

A4: The features and benefits of the RoDTEP Scheme include:

• Applicability to all industries.
• Coverage of all central, state, and local taxes not refunded under other schemes.
• Refunds provided in the form of electronic checks or transferrable duty credits.
• Use of credits to pay basic customs duty on imported goods.
• A digital platform for faster clearance and a robust monitoring and audit system with an IT-based risk management framework.