RoDTEP Scheme
Remission of Duties and Taxes on Exported Products
Boost your export competitiveness with the RoDTEP scheme - a comprehensive solution for refunding unrefunded duties and taxes on exported products.
RoDTEP Benefits
- Refund of unrefunded duties/taxes at Central, State & local levels
- Benefit as percentage of FOB value of exports
- Freely transferable e-Scrips with 2-year validity
- Effective from January 1, 2021
RoDTEP Scheme Details
| Particulars | Meanings / Definitions |
|---|---|
| RoDTEP full form | Remission of Duties and Taxes on Exported Products |
| RoDTEP Purpose | To refund currently unrefunded Duties / taxes / levies at the Central, State and local level, borne on the exported product, prior stage cumulative indirect duties / taxes / levies on goods and services used in the production & distribution of the exported product |
| Period (Effective Date) | Scheme effective from 01-01-2021 |
| Mode of Application | Online |
| Benefit | % on FOB Value of Exports |
| Condition | Realisation of Sale proceeds within time period allowed by RBI, as per FEMA, 1999 (not necessarily required e-BRC at the time of claiming RoDTEP) |
| Quantum of Incentive | Rates as notified in Appendix-4R (% or with Cap) |
| Nature of Rebate | e-Scrips |
| Usage of e-Scrips | Only for payment of Basic Customs Duty |
| Validity of e-Scrips Generation | Two years from the scroll data |
| Validity of e-Scrips Utilisation / Sale | Two years from the scrip generation date |
| Transferability | Freely Transferable to another IEC holder who has e-ledger (entire duty credit amount at a time, part amount not allowed) |
| Initial Cost / Financial Implication | Govt Fees for IEC, Digital Certificate Cost, ICEGATE Registration Cost, RoDTEP Account Credit Ledger Creation, Consultancy Service Charges |
| Liability | Over-Claim / Claim based on Mis-declaration / Non-realisation of Export proceedings / Foreign Exchange, Customs may call back RoDTEP Claim alongwith penal interest as applicable. |
RoDTEP Process Flow
Application & Registration
- Obtain valid IEC (Import Export Code)
- Register on ICEGATE portal
- Create RoDTEP credit ledger account
- Obtain Digital Signature Certificate
Export & Claim Process
- Make declaration in Shipping Bill for RoDTEP claim
- Complete export formalities
- Ensure export proceeds realization within RBI timeframe
- System automatically processes claim based on declaration
Scrip Issuance & Utilization
- e-Scrip generated and credited to ledger
- Use scrip for Basic Customs Duty payment
- Transfer scrip to another IEC holder if needed
- Ensure utilization within 2 years of issuance
Key Features of RoDTEP Scheme
WTO Compliant
RoDTEP is designed to be compliant with World Trade Organization (WTO) norms, replacing the earlier MEIS scheme which faced challenges on compliance grounds.
Transferable Credits
The e-Scrips issued under RoDTEP are freely transferable to other IEC holders, providing flexibility in utilization and potential for monetization.
Sector-Specific Rates
Different sectors have different RoDTEP rates based on the tax incidence study, ensuring fair compensation for the actual tax burden borne by exporters.
Extended Validity
The 2-year validity period for e-Scrips provides exporters with ample time to utilize the benefits or transfer them to other eligible entities.
Automated Processing
The scheme operates through an automated IT system, reducing manual intervention and streamlining the claim process for exporters.
Customs Duty Payment
RoDTEP e-Scrips can be used for payment of Basic Customs Duty on imports, providing direct financial benefit to exporters who also import raw materials or components.
RoDTEP vs. Previous Schemes
| Feature | RoDTEP | MEIS (Previous Scheme) |
|---|---|---|
| Nature | Refund of taxes/duties | Export incentive |
| WTO Compliance | Fully compliant | Challenged at WTO |
| Benefit Calculation | Based on actual tax incidence | Fixed rates by product category |
| Form of Benefit | e-Scrips | Duty Credit Scrips |
| Usage | Only for Basic Customs Duty | Multiple duties including Customs, Excise, Service Tax |
| Processing | Automated system | Application-based |
Frequently Asked Questions
RoDTEP is a tax refund scheme designed to reimburse the taxes and duties paid by exporters that are not refunded under any other mechanism. MEIS (Merchandise Exports from India Scheme) was an incentive scheme that provided rewards to exporters based on a percentage of their export value. The key difference is that RoDTEP is WTO-compliant as it only refunds actual taxes paid, while MEIS was challenged at the WTO for being a direct export subsidy.
To claim RoDTEP benefits, you need to:
- Make a declaration in the shipping bill at the time of export
- Ensure the "RoDTEP" option is selected in the declaration
- Complete export formalities and ensure export proceeds realization within the time allowed by RBI
- The system will automatically process eligible claims and credit e-Scrips to your ledger
Unlike previous schemes, there is no need to file a separate application for each shipment.
Yes, you can claim both RoDTEP and Duty Drawback, but with certain conditions:
- You can claim RoDTEP along with Customs Duty Drawback (under Section 75)
- If claiming All Industry Rate (AIR) of Duty Drawback, you must ensure you're claiming only the customs portion and not the excise/VAT portion
- The taxes refunded under RoDTEP should not overlap with those refunded under Duty Drawback
This is to prevent double refund of the same taxes/duties.
RoDTEP rates are determined based on:
- Industry-wide study of input consumption patterns
- Assessment of embedded taxes and duties that remain unrefunded
- Analysis of the production and distribution chain
- Evaluation of state and local level taxes that affect export pricing
The rates are notified in Appendix-4R and are expressed as a percentage of FOB value, sometimes with a value cap per unit of the exported product.
If export proceeds are not realized within the time period allowed by RBI under FEMA regulations:
- The RoDTEP benefit already granted may be recovered
- Customs authorities can demand repayment of the RoDTEP amount
- Penal interest may be charged on the recovered amount
- Future claims may be suspended until compliance is achieved
In case of genuine difficulties in realization, exporters can approach RBI for extension of the realization period.
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Our RoDTEP Services
RoDTEP Registration
Complete assistance in setting up your RoDTEP account, including ICEGATE registration, digital signature procurement, and credit ledger creation.
Shipping Bill Declaration
Expert guidance on making proper declarations in shipping bills to ensure smooth processing of RoDTEP claims without rejections.
e-Scrip Management
Strategic advice on optimal utilization of RoDTEP e-Scrips, including timing of usage and potential transfer opportunities.
Compliance Assistance
Ongoing support to ensure compliance with all RoDTEP regulations and prevent recovery actions or penalties.