Remission of Duties and Taxes on Exported Products Scheme (RoDTEP)
|S. No.||Heading||Relevant Provision|
|1||Notification Number and issuance Date||Notification No. 19/2015-20 dated 17th August, 2021|
|2||Objective||To replace the existing MEIS (Merchandise Exports from India Scheme)|
|3||Effective Date of commencement of Scheme||1st January, 2021|
|4||What is RoDTEP Scheme?||The objective of Scheme is to refund, currently unrefunded.
RoDTEP scheme is notified for the remission of duties, taxes, and other levies at the Central, State, and local level which is borne on the exported goods manufactured in India. It also includes the incidence of taxes suffered post manufacturing of the goods i.e., in respect of the distribution of exported goods. The benefit is not available in respect of those duties or taxes which are otherwise exempted or remitted or credited.
|5||Number of Products covered||Presently the benefit of rebate is applicable on various products presently 8,555 tariff lines being exported from India.|
|6||Rebate Calculations||Rebate shall be granted to all eligible at the notified rates as a percentage of FOB value with a value cap per unit of the exported goods.
For certain export items, a fixed quantum of rebate amount per unit may also be notified.
|7||Notified goods||Refer: https://www.dgft.gov.in/CP/?opt=RoDTEP|
|8||Realization of foreign exchange within the time limit prescribed under Foreign Exchange Management Act, 1999 (FEMA)||It is pertinent to note that the benefit of this scheme is allowed subject to the receipt of sale proceeds within the time allowed under the Foreign Exchange Management Act, 1999 failing which such rebate shall be deemed never to have been allowed.
Although the rebate would not be dependent on the realization of the export proceeds at the time of issuance of the rebate, however, adequate safeguards would be put in place to avoid misuse on account of non-realization of the export proceeds.
|9||Mechanism of Issuance of rebate||Scheme would be implemented through end-to-end digitization of issuance of rebate amount in the form of transferable duty credit/electronic scrip (e-scrip), which will be maintained in an electronic ledger by CBIC.|
|10||Nature of Rebate||The e-scrips can be used only for payment of duty of Customs leviable under First Schedule of Customs Tariff Act, 1975 i.e. Basic Customs Duty.|
|12||Monitoring, Audit and Risk Management System (RMS)
|For the purpose of audit & verification, the exporter would be required to keep records substantiating claims made under this scheme. A monitoring system and audit mechanism with an IT based RMS would be put in place by the CBIC.|