Rodtep-Scheme

Ministry Of Finance have released most awaited scheme “RoDTEP Scheme” and it will get implemented from 01.01.2021in place of MEIS Scheme.
GOI have taken decision to extend benefit of the scheme RoDTEP to all export products- Subject to Notification

Process	RoDTEP
Scheme of Incentive	Refund of Indirect taxes on Inputs used in the manufacture of exported product which is not being currently reimbursed by any other existing schemes
WTO Compliance	Compliant with WTO trade norms
Mode of Issuance	Issuance in the form of transferable duty credit/ electronic    scrip    which    will   be    maintained                     in electronic ledger.
Processing Shipping Bill with declaration	Y Remark was mandatory for RoDTEP Items along with one separate Declaration to be filed with SHB
EDI Transmission of SHB	Not Applicable
Scroll Generation	Customs officer will generate the scroll of RoDTEP after filling of EGM & clearance of RMS factors
e-BRC	Not required subject to RMS
Application fees	No application fees are required
Digital Signature Certificate	Class III of DSC was required for RoDTEP
Application submission and Issuance of Script	Exporter needs to generate an application and Script on IEC-gate after passing SHB wise scroll of RoDTEP
Script Form	Issuance in transferable Duty credit electronic script which will maintain in electronic ledger
Registration of script	As customs is issuing script there is no need to register the same with customs
Utilization of Script	Exporter can use registered scripts for payment of Customs Duty
Transfer of script	Script holder can transfer script to Other IEC holder by using DSC Class III
Advance Authorization / EOU / Jobbing Purpose	Exports      made      by      EOU/SEZ      or                   Advance authorizations is not entitled for Duty Credit – Subject to Notification
Supplies to SEZ	Supplies to SEZ under FCC are entitled for Duty Credit – Subject to notification
Compliances	Customs will release scripts without verification of realization, retroactive, compliances will be strict
Duty Credit Rates	Yet to Notify
One Application for Multiple Ports	The exporter will be able to club the credits allowed for Shipping Bills at a port and generate a Credit Scrip for the same on ICEGATE portal
Restriction of No. of SHB	No quantitative restriction

Date of Implementation
All eligible category of exports shipments made on or after 01.01.2021 will be entitled for RoDTEP irrespective of the date of notification/notified rates subject  to  specified conditions  and exclusions.
Declaration of Intend
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 by putting remark as under: –
WE INTEND TO CLAIM BENEFITS UNDER RODTEP SCHEME
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.

I/We, in regard to my/our claim under RoDTEP scheme made in this Shipping Bill or Bill of Export, hereby declare that:

1. I/ We undertake to abide by the provisions, including conditions, restrictions, exclusions, and time- limits as provided under RoDTEP scheme, and relevant notifications, regulations, etc., as amended from time to
2. Any claim made in this shipping bill or bill of export is not with respect to any duties or taxes or levies which are exempted or remitted or credited under any other mechanism outside
3. I/We undertake to preserve and make available relevant documents relating to the exported goods for the purposes of audit in the manner and for the time period prescribed in the Customs Audit Regulations, 2018.”

There are some checks Box available in the System to disallow RoDTEP benefit where the benefit of certain other schemes like Advance Authorization, EOU, Jobbing etc. has been availed. While some checks have been built in within the System at the time of filing the Shipping Bill, it is assumed that if the exporter (or the authorized Customs Broker) has submitted the statement as mentioned in para 2(b) with the Shipping Bill, the claim to RoDTEP has been made with the undertaking that no undue benefit would be availed

It seems that RoDTEP will not be available for exports made under Adv. Authorisation / EOU / Jobbing purpose. If ‘GOI is not allowing RoDTEPbenefit for exports made under Advance authorisation / EOU / Jobbing Purpose and indirectly will not be applicable to SEZ also, Exporter needs to re-validate the benefits and should conclude on DBK with RoDTEP.

To avail the scheme exporter shall make a claim for RoDTEP in the shipping bill by making a declaratio

1. Once EGM is filed, claim will be processed by Customs

The Shipping Bills with RoDTEP and/or Drawback claim will now be routed for officer intervention based on Risk based targeting by RMS. All the Shipping Bills will be sent to RMS after the EGM is filed. Based on the input by RMS, Shipping Bills will either come to officer for processing of RoDTEP/DBK benefits or will directly be facilitated to the scroll queue without any officer intervention.

As All SHBwill be routed through RMS, previoustrack record ofcompliances is to be cleared by Customs RMS. Else SHB will not processed by Customs for RoDTEP

1. Options have been made available in System for officers to generate RoDTEP scrolls

• Once the scroll is generated, the respective amounts would be available with the exporter as credits on the ICEGATE portal

1. Once processed a scroll with all individual Shipping Bills for admissible amount would be generated and made available in the users account at ICEGATE
2. User can create RoDTEP credit ledger account under Credit Ledger This can be done by IECs who have registered on ICEGATE with a DSC.
3. Exporter can log in into his account and generate scrip after selecting the relevant shipping `

1. Once the RoDTEP scroll is generated, the credits allowed will be available within their ICEGATE login of the exporter to claim and covert into a credit
2. The exporter will be able to club the credits allowed for any number of Shipping Bills at a port and generate a credit scrip for the same on ICEGATE

• 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 anyother entity having IEC and a valid ICEGATE registration. A detailed advisory for the benefit of the exporter on the scrip generation, ledger maintenance and transfer facilities will be published soon on These facilities will be made available once the final

RoDTEP rates are notified and scroll generation is enabled.

1. These scrips can be used for the payment of import duties as would be notified by CBIC
2. 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

• An option to suspend any RoDTEP scrip will also be made available with the Customs officer once the scroll generation is enabled. If a scrip is under suspension, its utilization or transfer will not be allowed by

CONCLUSION: –

Since the incentive rates are not yet fixed, it is too early to comment on the monetary impact of RoDTEP Scheme. Implementation of the scheme would make India a WTO- compliant exporter in the international market and the process that is promised by GOI seems to be a more transparent one, with strict compliance oriented for exporters. However, the question of applicable rates remains open as of now, which may well form the heart of exporters’ concerns about the change. Also, only 8000 Products were entitled for MEIS, whereas RoDTEP will cover more goods than MEIS

• • • Currently, only the GST and the import customs duties levied on inputs required for
      the manufacturing of export products are either exempted or refunded in some or the
      other way.
    • Input tax credit (ITC) of GST paid is available, and also if exported on payment of
      duty then IGST refund can be claimed.
    • Import Custom duties on raw materials are exempted through the Advance
      Authorization scheme or refunded through the Duty Drawback scheme.
    • However, still, there are many duties and taxes levied by the Central and State
      Government which are not refunded. It adds up to the final cost of resultant products
      and makes Indian products uncompetitive in the global market.

The RoDTEP Scheme aims to refund all those hidden taxes and levies, For example:

• Central & state taxes on the fuel (Petrol, Diesel, CNG, PNG, and coal cess, etc.) used for
  transportation of export products.
• The duty levied by the state on electricity used for manufacturing.
• Mandi tax levied by APMCs.
• Toll tax & stamp duty on the import-export documentation. Etc.
• The Scheme will ensure that the Exporter only export goods and services not any kind of
  taxes and the RoDTEP Scheme would cover all indirect Central & State taxes which are not
  reimbursed in any existing scheme.
  • An application shall be filed online using Class 3 Individual type Digital signature Certificate on ICEGATE website(https://www.icegate.gov.in/).
  • Relevant Shipping bills shall be linked with the online application by the Exporter/Applicant.
  • The refund under RoDTEP Scheme would be in the form of duty credit which will be transferable, or it may be in the form of electronic scrip which will be maintained in the electronic ledger.

  The implementation of the process will be done with the help of end to end digitization.

Following Documents required for online Application under RoDTEP Scheme –

Shipping Bill Copy

RCMC

• We have an experienced team working on understanding the foreign trade policies and finding the value it will add to our client base from various industries in the most effective manner.
• We help our clients by updating them about the foreign trade policies so that they can understand the value addition policy will bring for their benefit and also guide them from document preparation to obtaining the License in hand under the RoDTEP scheme.

• • • 1st January 2021: Implementation of RoDTEP Scheme from 1st Jan 2021 for all the export goods:

The Finance Ministry of India has extended the benefits under RoDTEP Scheme for all the export goods from 1st January 2021, Department of Commerce would specify the RoDTEP rates, conditions and exclusions under which benefits can be availed very soon. As per the Ministry, notified rates under RoDTEP Scheme irrespective of the date of notification, shall apply with effect from 1st January, 2021 to all eligible exports of goods.

Exporters will have to declare intention of availing the scheme for each item in shipping bill or bill of export.

• • 13th March 2020: The Union Cabinet approved the RODTEP Scheme:
    The Union Cabinet on Friday approved the Remission of Duties or Taxes on Export products, it will get into effect from January 2021 and will be until 2025 and will replace existing MEIS scheme in a phased manner.
  • 1st February 2020: Introduction of RODTEP by Finance Minister:
    The Finance Minister in her Budget Speech on 1st February 2020 had announced that Scheme for Remission of duties and taxes on export products would be launched for which she allocated Rs 50,000 Crore.