{"id":41226,"date":"2022-03-17T11:37:13","date_gmt":"2022-03-17T06:07:13","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41226"},"modified":"2022-03-22T12:18:36","modified_gmt":"2022-03-22T06:48:36","slug":"rodtep-scheme","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/","title":{"rendered":"RoDTEP Scheme: Everything You Needs to Know"},"content":{"rendered":"\n<p class=\"has-drop-cap\">RoDTEP is an abbreviation for Duties and\nTaxes on Export Products. It is an exporter-benefit scheme that came into\neffect on January 1st, 2021. RoDTEP came as a replacement for an erstwhile\nscheme called MEIS (Merchandise Exports from India Scheme). This scheme ensures\nthat the Indian exporters receive refunds against the paid taxes and duties.\nThe scheme aims at boosting export by facilitating incentives to the concerned\nexporters.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/#An_Overview_RoDTEP_Scheme\" >An Overview RoDTEP Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/#Salient_Features_of_the_RoDTEP_Scheme\" >Salient Features of the RoDTEP Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/#Eligibility_to_obtain_benefits_of_the_RoDTEP_Scheme\" >Eligibility to obtain benefits of the RoDTEP Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/#Availing_benefits_under_RoDTEP_Scheme\" >Availing benefits under RoDTEP Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/#Government_is_yet_to_introduce_the_rate_of_duty_of_remission_for_the_products_falling_under_the_RoDTEP_scheme\" >Government is yet to introduce the rate of duty of remission\nfor the products falling under the RoDTEP scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/#Key_points_to_ponder\" >Key points to ponder<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/rodtep-scheme\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_RoDTEP_Scheme\"><\/span>An Overview RoDTEP Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The United States has criticized\nIndian-based export schemes in the WTO. The US claimed that these schemes are\nagainst the interest of American workers. The WTO dispute panel ruled out the\njudgement against India, claiming that the export subsidy schemes were\nseemingly breaching the trade body&#8217;s norms. The panel further stated that the export\nsubsidy schemes could not remain in effect. This led the Government to\nintroduce a new WTO-compliant scheme, i.e. RoDTEP.<\/p>\n\n\n\n<p>The following are the former export\nsubsidy schemes that were proposed to be withdrawn:<\/p>\n\n\n\n<ul><li>Merchandise\nExports from India Scheme<\/li><li>Electronics\nHardware Technology Parks Scheme<\/li><li>Export\nOriented Units Scheme<\/li><li>Export\nPromotion Capital Goods Scheme<\/li><li>Bio-Technology\nParks Scheme<\/li><li>Duty-Free\nImports for Exporters Scheme<\/li><li>Special\nEconomic Zones (SEZ) Scheme<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Salient_Features_of_the_RoDTEP_Scheme\"><\/span>Salient Features of the RoDTEP Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Refund of the erstwhile non-refundable\ntaxes and duties <\/em><\/strong><\/p>\n\n\n\n<p>VAT, Coal cess, Mandi tax, Central Excise\nduty on fuel etc., shall be eligible for a refund under this scheme. All the\nproducts under MEIS and the RoSTCL are now under the RoDTEP Scheme&#8217;s purview.<\/p>\n\n\n\n<p><strong><em>The automated system of credit<\/em><\/strong><\/p>\n\n\n\n<p>The refund will be initiated in the form\nof electronic scrips. These duty credits shall be managed and probed via an\nelectronic ledger.<\/p>\n\n\n\n<p><strong><em>Prompt verification via digitization<\/em><\/strong><\/p>\n\n\n\n<p>Through the advent of the digital\nlandscape, clearance related activities happen promptly. Checking of the\nexporters&#8217; records shall be done via an IT-based risk management system to\nspeed up the transaction processing.<\/p>\n\n\n\n<p><strong><em>Multi-sector scheme<\/em><\/strong><\/p>\n\n\n\n<p>RoDTEP seeks to ensure uniformity across\nall areas that fall under its ambit.<\/p>\n\n\n\n<p>In addition to that, a dedicated\ncommittee will come to effect to decide the phase-wise implementation of the\nscheme across the key sectors. The committee will also be liable for\nformulating the benefits provided to the respective industry.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_to_obtain_benefits_of_the_RoDTEP_Scheme\"><\/span>Eligibility to obtain benefits of the RoDTEP Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>All\nsectors falling under RoDTEP Scheme shall have access to underlying benefits.\nFurther, the scheme intends to give priority to Labor-intensive sectors.<\/li><li>Manufacturer\nexporters and merchant exporters (traders) also have access to the scheme&#8217;s\nbenefits.<\/li><li>RoDTEP\nscheme has no criteria relating to the turnover threshold. This would help\nsmall exporters a great deal.<\/li><li>Products\nthat Re-exported would stand ineligible to access the scheme.<\/li><li>Every\nexported product should have a country of origin, i.e. COI as Indian, to avail\nthe scheme&#8217;s benefits.<\/li><li>Export\nOriented Units and Special Economic Zone Units can access the scheme&#8217;s\nbenefits.<\/li><li>RoDTEP\nscheme is also accessible to goods shipped via courier through e-commerce\nplatforms.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Availing_benefits_under_RoDTEP_Scheme\"><\/span>Availing benefits under RoDTEP Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The ICEGATE portal (aka Indian Customs\nElectronic Gateway) shall entail the information relating to credit availed by\nthe exporter. At the port, the exporter should disclose the shipping bill, the\ndetails pertaining to the claim of the RoDTEP benefit relating to the given\nitem of export and generate credit scrip for it.<\/p>\n\n\n\n<p>These scrips will then be utilized to\naddress custom duties and claim rebates. Further, scrips can be sold out to any\nthird party as they are transferrable in nature.<\/p>\n\n\n\n<p><strong><em>The process of generating and claiming\nscrips as per the RoDTEP scheme is shown below.<\/em><\/strong><\/p>\n\n\n\n<ul><li>The exporter should file a claim declaration for RoDTEP in the shipping bill.<\/li><li>Upon filing the Export General Manifest (EGM), the Customs initiate the processing of the claim.<\/li><li>Post-processing, a scroll with all Shipping Bills for the mentioned amount shall be generated and then shared on the user&#8217;s account at the <strong>ICEGATE portal<\/strong><sup><a href=\"https:\/\/www.icegate.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup>.<\/li><li>The exporter must log in to the said portal and create a credit ledger account.<\/li><li>Next, the exporter can log into the portal and generate scrips via choosing the relevant shipping bills.<\/li><li>Next, the refund shall be credited to the exporter account for specific utilization purposes.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_is_yet_to_introduce_the_rate_of_duty_of_remission_for_the_products_falling_under_the_RoDTEP_scheme\"><\/span>Government is yet to introduce the rate of duty of remission\nfor the products falling under the RoDTEP scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> Major Differences between MEIS and&nbsp; RoDTEP <\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>MEIS<\/em><\/strong>\n  <\/td><td>\n  <strong><em>RoDTEP<\/em><\/strong>\n  <\/td><\/tr><tr><td><\/td><td><\/td><\/tr><tr><td>\n  1. Incentives available on the\n  exportation of goods\n  <\/td><td>\n  1. Refund of duties &amp; taxes that\n  are presently not being reimbursed by any other schemes.\n  <\/td><\/tr><tr><td><\/td><td><\/td><\/tr><tr><td>\n  2. It is not WTO-compliant\n  <\/td><td>\n  2. It is a WTO-compliant\n  <\/td><\/tr><tr><td><\/td><td><\/td><\/tr><tr><td>\n  3. 2%-5% of the FOB value of exports.\n  <\/td><td>\n  3. GOI is yet to roll out product based\n  percentage \n  <\/td><\/tr><tr><td><\/td><td><\/td><\/tr><tr><td>\n  4. MEIS was shared to applicant in the\n  form of physical transferable scrips.\n  <\/td><td>\n  4. Issued in the form of transferable\n  duty credit&nbsp;or electronic scrips which shall be administered&nbsp;via an\n  electronic ledger.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_points_to_ponder\"><\/span>Key points to ponder<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>On August 17th 2021, the GOI rolled out the RoDTEP scheme rates &amp; guidelines. The notified rates under the said scheme for various sectors include 0.5%, 1.4%, 2.4% and 4%. However, the Government is still deciding on releasing a fixed quantum of rebate per unit for given exportable products.<\/li><li>The RoDTEP scheme covers employment-oriented sectors like marine, leather, gems and jewellery, agriculture, etc. It will also support other sectors like electrical\/electronics, automobiles, machinery, plastics, etc. The RoDTEP and RoSCTL (Rebate of State and Central Taxes and Levies) cover the entire value chain of textiles.<\/li><li>The RoDTEP scheme encompasses sectors like leather, marine, agriculture, gems and jewellery, etc. It will also bolster sectors like automobiles, plastics, machinery, electrical\/electronic, etc.<\/li><li>Some of the key sectors presently exclude from the schemes include steel, pharmaceuticals, organic and inorganic chemicals, etc.<\/li><li>The common documents required for RoDTEP Scheme include Shipping bills, DSC \u2013 Class 3, <strong><em>Electronic Bank Realisation Certificate* eBRC), and <\/em><\/strong><em><a href=\"https:\/\/corpbiz.io\/learning\/rcmc-certificate-for-exporters\/\"><strong>RCMC Certificate<\/strong><\/a><strong>. <\/strong><\/em><\/li><li>The GOI released the RoDTEP scheme on January 1st 2020. The RoDTEP scheme shall remain in effect till 2025. The scheme seeks to subsidize the entire merchandise exports of India.<\/li><\/ul>\n\n\n\n<p><strong><em>Electronic Bank Realisation\nCertificate*:<\/em><\/strong> An\neBRC (electronic Bank Realisation Certificate) refers to a digital certificate\nfor those engaged with the export business. It is granted by the designated\nbank as confirmation that the concerned exporter has received payment against\nthe exports of goods or services. <\/p>\n\n\n\n<p><strong><em>Registration Cum Membership\nCertificate*:<\/em><\/strong> <\/p>\n\n\n\n<p>As per the Foreign Trade\nPolicy, a RCMC is required to avail benefits under the policy. The certificate\nmainly benefits the exporters and helps reduce immediate liabilities relating\nto shipping. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The RoDTEP scheme came as a replacement\nfor the previous scheme known as the Merchandise Exports from India Scheme. It\nwas released because the previous scheme did not comply with WTO\u2019s norms. This\nscheme seeks to facilitate incentives to the small exporters in the form of\nduty scrips.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RoDTEP is an abbreviation for Duties and Taxes on Export Products. It is an exporter-benefit scheme that came into effect on January 1st, 2021. RoDTEP came as a replacement for an erstwhile scheme called MEIS (Merchandise Exports from India Scheme). This scheme ensures that the Indian exporters receive refunds against the paid taxes and duties. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":41340,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[405],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5566,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41226"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41226"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41226\/revisions"}],"predecessor-version":[{"id":41341,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41226\/revisions\/41341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41340"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}