RoDTEP Scheme: In order to boost India’s export and trade, the government of India has launched RoDTEP Scheme. It was first unleashed on January 13, 2020.
RoDTEP is basically a larger strategy towards boosting trade and exports in the country. In order to achieve its proposed target, the Modi led government in the center focused doubling duty-free exports for 6 to 12 months before the launch of this scheme.
Earlier, there happened to be schemes like VAT Remission Scheme and MEIS (Merchandise Exports from India Scheme) that were previously accessible to exporters under various categories have now been extended by the above scheme.
In the present scenario, these are now produced in the form of a single package.
Table of Contents
What is RoDTEP Scheme?
The RoDTEP scheme is basically a roadmap of remission of taxes and duties on different Exported Products. The scheme is actually an initiation by the Indian Government to better support exporters. It all happened on January 1, 2021 when the old MEIS scheme was actually launched by the new scheme.
The core objective of this scheme is to compensate different exports for tariffs and taxes that were earlier not reimbursable. This led to the promotion of international trade and also provide new benefits to exporters who are engaged in selling their goods outside the country.
The strategy in the form of this scheme is to provide benefits for small and medium-sized firms. The main reason why this happens is because it enhances the time to clear all documents from a span of 10 days to 1 month.
And so, this scheme is also beneficial to exporters. In the same way, the scheme is also great as it enables duty refunds and tax savings for exported services and products.
RoDTEP Scheme Details in Highlights
|Name of the Scheme||RoDTEP Scheme|
|Launched By||The Government of India|
|Implemented||January 13, 2020|
|Objective||to boost exports, trade, and government revenue in India|
RoDTEP Scheme Objectives
Take a look at RoDTEP program objectives below:
- The basic goal of the scheme is to reimburse unpaid
- Duties, taxes, and levies amounts are generally paid at the federal, state, and local levels on the exported product
- All the above levies and taxes are dependent on the exported goods sale
- The refund under the above scheme won’t be applied to taxes and duties that were earlier credited, remitted, or waived
Features and Benefits of the RoDTEP Scheme
Take a look below at some of the RoDTEP Scheme features:
- RoDTEP Scheme is generally suitable for all type of trades
- The scheme includes municipal, central and state taxes not already covered by another system
- The RoDTEP comprises items earlier covered under RoSCTL and MEIS
- In this scheme, exporters are bound to get refunds in the form of duty credits or checks
- This can also be used to pay custom duty on imported goods. Similarly, other importers may also receive credits
- All types of exporters will be monitored by an external audit system
Relevance of RoDTEP Scheme
The RoDTEP scheme was basically kicked off to boost export and revenue of the country. It’s fully demonstrated by the central government’s endorsement along with its registration with the Indian Ministry of Commerce.
The VAT and MEIS Remission Scheme that are mostly used by exporters have now been replaced by the newly launched scheme. And so, the newly launched scheme is expected to enable exporters better claim their export-related tax benefits more efficiently.
RoDTEP Scheme Eligibility Criteria
You need to fulfill all the below mentioned criteria to apply for the RoDTEP Scheme:
- The RoDTEP Scheme basically covers all type of industries. While selecting the applicant, the priority will be given to sectors that need a lot of labor
- There is no minimum turnover requirement to apply for this scheme
- The above scheme is open for both merchant exporters and manufacturer exporters
- Your nation of origin must be India to qualify for the scheme
- The above scheme is applied to all products dispatched by courier using online shopping carts
Documents required for RoDTEP Scheme
- Registration cum Membership Certificate (RCMC)
- Electronic Bank Realization Certificate (eBRC)
- Shipping Bills
RoDTEP Scheme Rates
The ceiling rates under the above scheme will be decided by the Department of Revenue’s Drawback Division. There will be a Committee in the above department from line ministries, DoC and DGFT.
The Ministry of Finance in association with the Department of Commerce (DoC) will allocate the overall budget for the RoDTEP Scheme.
Tax Refund Rates
Under this scheme, a rebate will be offered to exporters on the export of their goods falling under the notified 8-digit HS Code. The rate has been previously decided to be the percentage of FOB value with a value cap per unit of the exported product.
In addition to the above, a rebate of some specific amount per unit may be announced for some special export commodities. Now, as per APPENDIX 4R, rates of value cap and rebates per unit falling under the RoDTEP has to be notified accordingly.
Supplies, Items, and Categories that are Ineligible for the Scheme
Take a look at the following categories of exports that are ineligible for rebate under the RoDTEP Scheme:
- Imported goods that are exported under FTP’s paragraph will be 2.46
- All exported products need to meet a minimum export price
- Products not allowed under Schedule 2 of the ITC (HS) Export Policy
- Deemed Exports
- Products supplied to SEZ/FTWZ units
- Products that are produced with EHTP and BTP
- All products made at a warehouse under the Section 65 of the Customs Act of 1962 (52 of 1962)
- Products used since their creation RoDTEP Scheme Rules
Steps to Apply for RoDTEP Scheme
In order to apply for the RoDTEP Scheme, please adhere to the following:
- First, you need to visit the official website of ICE Gate i.e., https://www.icegate.gov.in/
- Once you reach the homepage, start filling the application form by employing a Class 3
- Individual type Digital Signature Certificate
- Next, attach required documents
- Submit your application form
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