Scheme For Remission Of Duties And Taxes On Exported Products (RoDTEP)

Prepared by Ganesh R

Under RoDTEP Scheme, a rebate would be granted to eligible exporters on export of items which are categorized under the notified 8-digit HS Code (APPENDIX 4 R – Notified on 17.08.2021 under Notification No 19/2015-20).

All Manufacturer exporters and merchant exporters are eligible to claim the benefit under this scheme.

The Objective of this scheme is to refund the embedded tax (including Central, State and local, duties, taxes, and levies imposed on input products) and the duties on the goods exported.

Rate of Rebate
Rebate is granted at a notified rate as a percentage of FOB value with a value cap per unit of the exported product. (refer Appendix 4R)
The rebate under the Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.
RoDTEP rates are reviewed on an annual basis and in case of any necessary changes made shall be notified advance before the beginning of a financial year.

Issuance of Rebate:
Rebates will be issued in the form of a transferable duty credit/ electronic scrip (e-scrip) which will be maintained in an electronic ledger by the Central Board of Indirect Taxes and Customs (CBIC).
The e-scrips would be used only for payment of duty of customs leviable under the First Schedule to the customs Tariff Act, 1975.
This Scheme will take effect for exports from 1st January 2021. However, for exports made by categories under Para 4.55 (x), (xi) and (xii), the implementation date will be decided later as per provisions of Para 4.55B.
Para 4.55 Ineligible Supplies/ Items/Categories under the Scheme:

The following categories of exports/ exporters shall not be eligible for rebate under RoDTEP Scheme:
 i. Export of imported goods covered under paragraph 2.46 of FTP
ii. Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India
iii. Export products which are subject to Minimum export price or export duty
iv. Products which are restricted for export under Schedule-2 of Export Policy in ITC (HS)
v. Products which are prohibited for export under Schedule-2 of Export Policy in ITC (HS).
vi. Deemed Exports
vii. Supplies of products manufactured by DTA units to SEZ/FTWZ units
viii. Products manufactured in EHTP and BTP
ix. Products manufactured partly or wholly in a warehouse under section 65 of the Customs
Act, 1962 (52 of 1962)
x. Products manufactured or exported in discharge of export obligation against an Advance
Authorization or Duty Free Import Authorization or Special Advance Authorization issued
under a duty exemption scheme of relevant Foreign Trade Policy
xi. Products manufactured or exported by a unit licensed as hundred per cent Export
Oriented Unit (EOU) in terms of the provisions of the Foreign Trade Policy
xii. Products manufactured or exported by any of the units situated in Free Trade Zones or
Export Processing Zones or Special Economic Zones
xiii. Products manufactured or exported availing the benefit of the Notification No. 32/1997-
Customs dated 1st April, 1997.
xiv. Exports for which electronic documentation in ICEGATE EDI has not been generated/
Exports from non-EDI ports
xv. Goods which have been taken into use after manufacture

Time period
The rebate allowed is subject to the receipt of sale proceeds within time allowed under the Foreign Exchange Management Act, 1999 failing which such rebate shall be deemed never to have been allowed.
The rebate would not be dependent on the realization of export proceeds at the time of issue of rebate. However, adequate safeguards to avoid any misuse on account of non-realization and other systemic improvements as in operation under Drawback Scheme, IGST and other GST refunds relating to exports would also be applicable for claims made under the RoDTEP Scheme.

Audit and Risk Management
The Exporter would require to keep records substantiating claims under this scheme.
A monitoring and audit mechanism with an IT based Risk Management System (RMS) would be put in place by the CBIC, Department of Revenue to physically verify the records of the exporters on sample basis. Sample cases for physical verification will be drawn objectively by the RMS, based on risk and other relevant parameters

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