On 13th March 2020 The Union Cabinet approved Remission of Duties or Taxes on Export Products (RoDTEP), a scheme for exporters to reimburse taxes and duties paid by them such as value added tax, Coal Cess, Mandi tax, electricity duties and fuel used for transportation, which are not getting exempted or refunded under any other existing mechanism.
The Finance Minister of India announced the RoDTEP last year to incentivise exporters at an estimated cost of Rs 50,000 crore.
RoDTEP mnwill replace the Merchandise Export From India Scheme (MEIS) in phased manner. The MEIS Scheme will be phased out soon as MEIS Scheme was found to violate the WTO (World Trade Organization) rules as MEIS was export focused.
Introduction of RoDTEP Scheme:-
The aim of the RoDTEP scheme is to make Indian Products cost competitive and create a level playing field for them in the global market. The RoDTEP scheme is incompliant with WTO norms as it seeks to neutralize all taxes and levies imposed on export products.
It will reimburse all the taxes/duties/levies/ which all are charged at the central/state/local level which are not refunded in any existing scheme. Government only having aim that exporters should only export quality goods and services not any kind of taxes on the export products.
Rate of Rebate Under RoDTEP scheme
- The benefits rate under RoDTEP will be calculated on the FOB value of exports.
- There is Sectoral Norms Committees in DGFT headquarters who will function as Sectoral RoDTEP Committees who will determine the rates and value caps for various items under RoDTEP.
- The Government had asked the industry to come up with refund rates for various sectors to decide the RoDTEP benefit rates on the export.
- The Union Cabinet had approved RoDTEP (Remission of Duties and Taxes on Exported Products) in March and rates will be decided after consultations among the ministries of commerce and industry, finance, respective line ministries and industry.
- The Committee has decided that items will be shifted in phased manner from existing MEI Scheme to RoDTEP Scheme with help of monitoring and audit system.
Documents for RoDTEP application:-
The RoDTEP Scheme is the earlier version of RoSCTL (The Rebate of State & Central Taxes and Levies) & all the Documents required in RoDTEP scheme will be similar to RoSCTL scheme as follow –
- DGFT Digital Signature Certificate.
- Valid Copy of RCMC
- Shipping bills
- e-BRC(Bank Realization Certificate)
Procedure to claim benefits under RoDTEP Scheme:-
Application Procedure under RoDTEP scheme
The RoDTEP is similar to RoSCTL scheme but it is for the made –ups & apparel sectors and application procedure will be more or less same as follows-
Step 1 :- The application shall be filed on DGFT website along a ANF with the help of Digital signature certificate on DGFT website.
Step 2 :- Required documents need to be linked in online application
Step 3:- Refund will be given in the form of Duty Credit Scrip or it may be in the form of electronic scrip which shall be maintained in electronic ledger.
Step 4:- All the procedure will be implemented with the help of end to end digitization.
Step 5:- License received under RoDTEP will be verified by the custom