What is RoDTEP-scheme?

RoDTEP stands for Remission of Duties and Taxes on Export Products. It is a new scheme that is applicable w.e.f January 1st, 2021, formed to replace the existing MEIS (Merchandise Exports from India Scheme). It is essentially a substitute for the MEIS Scheme, which was challenged by the US at the WTO and was ruled against India by a WTO dispute panel. This scheme was introduced in order to boost the exports of commodities that were poor in quantity.                                           

Features of the RoDTEP Scheme

• Duties and taxes that were previously non-refundable will be refunded- This scheme will now reimburse mandi tax, VAT, coal cess, and Central Excise charge on fuel, among other things. The RoDTEP Scheme currently encompasses all goods covered under the MEIS and the RoSTCL (Rebate of State and Central Taxes and Levies).
• Fully automated credit system- The reimbursement will be in the form of electronic scrips that may be transferred. A computerised ledger will track and retain these duty credits.
• Digitization allows for quick verification- The approval process has become significantly speedier since the advent of the digital platform. Exporters’ records would be verified using an IT-based risk management system to guarantee speed and accuracy in transaction processing.
• Multi-sectoral scheme- RoDTEP covers all industries, including textiles, to guarantee consistency. In addition, a committee will be formed to determine the order in which the program would be implemented across multiple sectors, the extent to which each industry will benefit, and other relevant issues.

Eligibility for the RoDTEP Program’s benefits

• The RoDTEP Scheme may help all industries, including the textile industry. However, prioritization will be given to labour-intensive industries that benefit from the MEIS Scheme.
• The benefits of this plan are available to both manufacturer exporters and merchant exporters (traders).
• To qualify for the RoDTEP, there is no specific turnover requirement.
• This method does not apply to re-exported items.
• The exported items must have India as their country of origin to be eligible for the scheme’s advantages.

Concerns regarding the RoDTEP scheme

• The RoDTEP Scheme may help all industries, including the textile industry. However, prioritization will be given to labour-intensive industries that benefit from the MEIS Scheme.
• The benefits of this plan are available to both manufacturer exporters and merchant exporters (traders).
• To qualify for the RoDTEP, there is no specific turnover requirement.
• This method does not apply to re-exported items.
• The exported items must have India as their country of origin to be eligible for the scheme’s advantages.

FAQs about RoDETP

✅What steps can the Department take to ensure the RoDTEP scheme’s integrity?

The CBIC intends to implement an IT-based Risk Management System (RMS) to check exporters’ data on a sample basis physically. The RMS would draw such sample cases objectively, depending on risk and other critical criteria. As a result, the exporter should be compelled to maintain all records supporting the scheme’s claim.

✅How will the exporter be able to make use of the RoDTEP benefit?

The concept would be executed by digitising the refund amount and converting it into a transferable duty credit scrip (e-scrip). The CBIC would keep track of such scrip in an electronic ledger for future use.

✅What are the most prevalent industries that are currently exempt from the RoDTEP program?

Steel, pharmaceuticals, organic and inorganic chemicals, and others are among the essential sectors now excluded from the scheme’s benefits.

✅Who is eligible to take the benefit of the RoDTEP scheme?

This scheme is open to all commodities exporters. A merchant or a manufacturer might be the exporter in question. Such products, on the other hand, should have been shipped directly by that individual. The refund applies to 8555 tariff items.