Remission of Duties and Taxes on Exported Products (RoDTEP)

Taking a major step to boost exports, Government has decided to extend the benefit of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods with effect from 1 January, 2021.

The RoDTEP scheme would refund to exporter's the embedded Central, State and local duties/taxes that were so far not being rebated/refunded and were, therefore, placing our exports at a disadvantage. The refund would be credited in an exporter's ledger account with Customs and used to pay Basic Customs duty on imported goods. The credits can also be transferred to other importers.

The RoDTEP rates would be notified shortly by the Department of Commerce, based on the recommendation of a Committee chaired by Dr. G.K. Pillai, former Commerce and Home Secretary. The final Report of the Committee is expected shortly. An exporter desirous of availing the benefit of the RoDTEP scheme shall be required to declare his intention for each export item in the shipping bill or bill of export. The RoDTEP shall be allowed, subject to specified conditions and exclusions.

The notified rates, irrespective of the date of notification, shall apply with effect from 1 January,2021 to all eligible exports of goods.

Key Points :

• RoDTEP rates will be notified as per the RITC Code and therefore, there will be no need to declare any separate code or schedule serial number for RoDTEP.
• The exporter will have to make following declarations is the SW_INFO_TYPE Table of the Shipping Bill for each item i.e. INFO CODE = RODTEPY - If RoDTEP is availed.
• It may be noted that if RODTEPY is not specifically claimed in the Shipping Bill, no RoDTEP would accrue to the exporter.
• No changes in the claim will be allowed after the filing of the EGM.
• There are some checks built in the System to disallow RoDTEP benefit where the benefit of certain other schemes like Advance Authorization, EOU, Jobbing etc. has been availed.
• Once the RoDTEP scroll is generated, the respective amounts would be available with the exporter as credits on the ICEGATE portal.
• The credits allowed will be available within their ICEGATE login of the exporter to claim and covert into a credit scrips.
• Scrips once generated will reflect in the exporter's ledger and will be available for utilization in paying eligible duties during imports or for transfer to any other entity having IEC and a valid ICEGATE registration.
• The owner of the scrip (either the original exporter beneficiary or any other IEC to whom the scrip was transferred on ICEGATE portal) will be able to use the scrip in the Bills of Entry the same way as any other duty credit scrips issued by DGFT.