Contents

  1. Summary
  2. Eligibility of RoDTEP Scheme
  3. Ineligible Sectors under the RoDTEP Scheme
  4. Rate of Refund under RoDTEP theme
  5. Various Export Incentive Schemes for Exporters

Summary

Scheme for Remission of Duties and Taxes on Exported Products (RODTEP) was launched in 2020 on the first of January 2021 through the ministry of commerce and trade Government of India. This theme applies to the export of Products however not services. This theme was implemented to repeal and scale back taxes for exported Products and thereby encouraging the conditions of exported and increasing the quantity of export within the country. This theme has replaced Merchandise export incentive schemes (MIES).

The objective of the theme for Remission of Duties and Taxes on Exported Products (RoDTEP) The RODTEP theme was launched with the read To encourage exports within the country by reducing duties to supply simple refunds of assorted taxes to the exporters to supply an automatic refund route for ITC for avoiding the cascading result of taxes. to assist exporters in meeting international export standards

Eligibility of RoDTEP Scheme

This theme applies to all or any of the sectors concerned with the export of products no matter their turnover. Provided the country of producing of the exported product ought to be in Bharat. However, labor-intensive industries ought to tend additional priority over different sectors. product exported through e-commerce platforms is eligible underneath this theme.

Ineligible Sectors under the RoDTEP Scheme

  • Re-Export of foreign product wherever the originating country is that the third country
  • Export Products that is subject to Minimum export worth or duty
  • Deemed Exports
  • Supplies of Products factory-made by Domestic Trades Areas (DTA) units to SEZ/FTWZ units
  • Products factory-made in EHTP and BTP
  • Products factory-made or exported by a unit authorized as 100 % Export Oriented Unit (EOU) in terms of the provisions of the Foreign foreign policy
  • Products factory-made or exported by any of the units settled in trade Zones or Special Economic Zones (SEZ)
  • Exports that electronic documentation in ICEGATE EDI has not been generated/ Exports from non-EDI ports.

Process of Refund underneath RoDTEP theme

  • All the central, state and native taxes and duties are refunded within the bourgeois ledger account of the bourgeois with a retrospective result
  • A watching and audit mechanism are placed in situ to physically verify the records of exporters
  • These refunds are wont to pay basic custom duties on foreign product
  • A bourgeois seeking the advantages of the theme can have to be compelled to declare his intention for every export item within the shipping bills or bills of exports

Rate of Refund under RoDTEP theme

The rebate underneath this theme would be claimed as a share of freight on board (FOB) worth of exports. The compensation rate of taxes and duties can vary from 0.01% to 4.3% (maximum limit). things like gems & jewelry would have a refund rate of zero.01% whereas things like shirt materials are at 4.3%. sectors like steel, pharma, and chemicals are unbroken out of the RoDTEP theme. Employment homeward-bound Sectors like Marine, Agriculture, Leather, Gems & jewelry, etc. are coated underneath the theme. different sectors like cars, Plastics, Electrical / natural philosophy, Machinery, etc. conjointly get support. the whole value chain of textiles conjointly gets coated through RoDTEP & RoSCT  known export sectors and rates underneath RoDTEP cowl 8555 tariff lines additionally to similar support being extended to attire and made-up exports underneath the RoSCTL theme of the Ministry of Textiles.

Various Export Incentive Schemes for Exporters

Pre-Export Incentive Schemes for Exporters

  • Advance Authorization theme (commonly called Advance Licence underneath that input materials for exports as per SION will be foreign while not payment of Customs Duty;
  • Duty-Free Import authorization theme (DFIA);
  • Export Promotion Capital product theme (Commonly called EPCG theme underneath that capital product will be foreign for producing exportable product while not payment of duty with sure export fulfilment condition)

Post Export Incentive Schemes for Exporters

  • Duty recoil (a set you choose the FOB worth of the Exports)
  • Products Exports from Bharat theme (MEIS) – a set you look after the export worth of products
  • Services Exports Bharat theme (SEIS) – a set you look after the export of sure nominal space of services (software exports not included)

Status Based Incentive Schemes for Exporters 

  • Export homeward-bound unit theme (EOU)
  • Special Economic Zone theme (SEZ)
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