RoDTEP Scheme: Full Form, Rates, Guidelines, Eligibility, Features, Benefits

• The RoDTEP scheme's full form is Remission of Duties and Taxes on Export Products.
• This scheme is the Government’s initiative to facilitate and boost external trade activities.
• Exporters of eligible items are issued e-scrips as a refund, which are transferable and used for basic customs duty payment.

Looking to start your export business and concerned about the taxes and duties? Read on to learn about the RoDTEP scheme.The RoDTEP's full form is Remission of Duties and Taxes on Export Products, and is the Government’s initiative to facilitate and boost external trade activities. From ‘what is RoDTEP?’ to ‘how to claim RoDTEP?’, this blog aims to address the common questions at the top of your mind.

The RoDTEP scheme's full form is Remission of Duties and Taxes on Export Products. The Department of Commerce notified this scheme, and it is administered by the Department of Revenue. Besides, a RoDTEP Policy Committee (RPC) chaired by the DGFT or Directorate General of Foreign Trade addresses residual scheme-related issues.This scheme facilitates the re-imbursement of taxes/duties/levies that are currently not refunded under any other mechanism, at the central, state, and local level, but are incurred during the manufacture and distribution of exported products.Exporters of eligible items are issued e-scrips as a refund, which are transferable and used for the basic customs duty payment.

Now that we know RoDTEP meaning and what is RoDTEP, let's understand what led to the launch of this scheme.You can trace the need for scheme launch when the World Trade Organisation (WTO) said that the Merchandise Exports from India Scheme (MEIS), an export promotion scheme, distorted trade through direct subsidies.Thus, the government discontinued MEIS and eventually launched the RoDTEP scheme, complying with the WTO guidelines and offering the relevant tax rebates to eligible exporters.

Exploring the features of the RoDTEP scheme will help you understand the RoDTEP's meaning and know what RoDTEP is. Let's take a look at some of its key features. Tax Refund Benefits You can benefit from the refund of eligible taxes/duties/levies, subject to the fulfilment of relevant guidelines. Tracking Mechanism You can easily check the status of the e-scrips online, simplifying their tracking. This frees you from the trouble of manual tracking. Multiple Sectors The scheme extends its benefits across several sectors, subject to applicable conditions, ensuring uniformity in diverse sectors.

As mentioned above, exporters of eligible items are issued e-scrips. For understanding the eligible categories, let’s take a look at those categories that are ineligible under this scheme.

• Exports of imported goods as per para 2.46 of FTA or  Foreign Trade Policy, i.e. import for export.
• Exports through transhipments, meaning exports originating in a third country but transshipped through India.
• Export products subject to a minimum export price or export duty.
• Products restricted for exports under Schedule 2 of the Export Policy in ITC (HS), i.e. International Trade Centre (harmonised system).
• Products prohibited for exports under Schedule 2 of the Export Policy in ITC (HS).
• Deemed exports.
• Supplies of products manufactured by DTA (Domestic Tariff Area) units to SEZ (special economic zone)/FTWZ (free trade warehousing zone) units.
• Products that are manufactured in EHTP (Electronics Hardware Technology Park) and BTP (Bio-techology Park).
• Products manufactured partly or wholly in a warehouse under Section 65 of the Customs Act, 1962 (i.e. MOOWR or Manufacturing and Other Operations in Warehouse Regulations, etc).
• * Products manufactured or exported in discharge of export obligation against advance authorisation or DFIA (Duty Free Import Authorisation) or special advance authorisation issued under a duty exemption scheme of the relevant FTP.
• * Products manufactured or exported by a 100% EOU (export oriented unit).
• * Products manufactured or exported by any of the units situated in FTZ (foreign trade zone), EPZ (export processing zone) or SEZ.
• Products manufactured or exported availing the benefit of Notification No. 32/1997- Customs (i.e. jobbing transactions).
• Exports for which electronic documentation in ICEGATE EDI (Indian Customs Electronic Data Interchange Gateway) has not been generated, or exports from a non-EDI (electronic data interchange) port.
• Goods which have been taken into use after manufacture (i.e. second-hand goods).

*The Scheme provides that the exporters under the categories of SEZ, EOU, advance authorisation, etc., would be covered by the Scheme at a later date.Source: https://www.indiantradeportal.in/vs.jsp?lang=0&id=0,55,23222

Here are the standard steps typically followed for creating an Escrip (e-scrip)Account:

• Step 1 : Navigate to the option of Escrip account creation by clicking on the ‘Escrip’ tab under the ‘Our Services’ section on Indian Customs National Trade Portal 2.0 .
• Step 2: The login page will appear on your screen. Log in or register yourself and browse to the Escrip option under ‘Financial Services’ appearing on the left panel.
• Step 3: Select the scheme name from the drop-down as RoDTEP and click on ‘Create Escrip Account’.

Below is the broad procedure for claiming the e-scrip benefits:

• Step 1: Claim for RoDTEP in the shipping bill by making a declaration.
• Step 2: Customs will process the claim once the EGM (export general manifest) is filed.
• Step 3: Once processed, you can avail of a scroll with all individual shipping bills for the admissible amount in your account at ICEGATE.
• Step 4: You can create the RoDTEP credit ledger account under the Credit Ledger tab. This is possible in the case of IECs (Importer-Exporter Codes) registered on ICEGATE with a DSC.
• Step 5: You can log in to your account and generate the scrip after selecting the relevant shipping bills.

The RoDTEP scheme streamlines your taxes on export, and you can concentrate on other important business functions. This gives your export business an impetus, making it more competitive in the global market.A wide global reach asks for business expansion and capital to support expansion. Explore getting a business loan to meet your capital requirements and grow your business to tap new opportunities. Also Read: 10 Types of Business Loans in India