Government announced Remission of Duties and Taxes on Exported Products (RoDTEP) export promotion scheme for exporters
Government has announced a Rs 12,400 crore outlay for the Remission of Duties and Taxes on Exported Products (RoDTEP) export promotion scheme. The notification No. 19/2015-2020 issued on 17th August, 2021 by GOI. Ministry of Commerce & Industry. RoDTEP scheme notified as part of Foreign Trade Policy (FTP 2015-2020) with immediate effect. RoDTEP had been made applicable for the exports made since January 1, 2021.
Objective of the Scheme & Mechanism:
1. The scheme’s objective is to refund, currently un-refunded duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product and such indirect Duties/ taxes/ levies in respect of distribution of exported products". It aims to refund exporters duties and taxes such as VAT on fuel used in transportation, Mandi tax and duty on electricity used during manufacturing, that were so far not being refunded.
2. The rebate under the scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.
3. The scheme will operate in budgetary framework to be defined for each financial year so that the projected remissions for each financial year are managed within the approved budget of the scheme. Certain categories of exports/ exporters shall not be eligible under the scheme as notified.
4. A rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product. For certain export items, a fixed quantum of rebate amount per unit may also be notified. Product wise rates of rebate/ value cap per unit under RoDTEP notified in Appendix 4R (attached).
5. The rebate allowed is subject to a receipt of sale proceeds within the time allowed under the FEMA regulations failing which such rebate shall be deemed never to have been allowed. The rebate would not be dependent on the realization of export proceeds at the time of issue of rebate. IGST and other GST refunds relating to exports would continue and will not get affected due to RoDTEP scheme.
6. Scheme is to be implemented by Customs through a simplified IT System. Rebate will be issued in the form of a transferable duty credit/ electronic scrip (e-scrip) which will be maintained in an electronic ledger by the Central Board of Indirect Taxes & Customs (CBIC). The e-scripts would be used only for payment of Basic Customs Duty (not refundable in cash)
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