Menu
Blog

Home / Blog

Scheme guidelines for remission of duties and taxes on exported products

Ministry of Commerce and Industry has issued a Notification no. 19/2015-2020 dated 17th August, 2021 to provide the guidelines with respect to the new incentive scheme for export products viz. Remission of duties and taxes on exported products (‘RoDTEP Scheme’) as follows:
 

Scheme objectives and Features:

  1. The foremost objective is to refund all embedded duties and taxes on exported product (including prior stage cumulative indirect taxes) or on distribution of exported product used in the production at the central, state and local level.
     
  1. Scheme will take affect from 1st Jan 2021 for exports except ineligible categories under para 4.55 (x), (xi), and (xii).

Ineligible supplies under the scheme:

  1. Below categories of export (Para 4.55) will not be eligible for rebate under RoDTEP Scheme:
  1. Government has right to modify whether inclusion or exclusion any of the categories as mentioned above under scheme. It also provides that exports by EOU, FTZ/EPZ/SEZ unit and by Advance authorization may be subsequently included in RoDTEP Scheme and rates will be decided by RoDTEP Committee.

Procedure to claim benefit under the Scheme:

  1. Make declaration on Shipping bill: Exporters will be required to declare their intention to claim RoDTEP for each export item on Shipping Bill or Bill of Export. In case RoDTEP scheme is not selected in shipping bill, scheme would not accrue to exporter.
     

  2. Generation of credits in Electronic Credit Ledger: Based on exporter’s declaration in Shipping Bill, DGFT will process RoDTEP claim. Shipping Bill with RODTEPY declaration will be routed for officer intervention basis risk-based targeting by RMS. Accepted Shipping Bill will move to respective scrolls for disbursement of benefit. Option to generate RoDTEP scroll is currently disabled till Electronic Ledger module is enabled by CBIC. Once scroll is generated, benefit will be available as Credits in Electronic Ledger on ICEGATE portal.
     

  3. Convert credits into scrips: Exporter will be required to convert credits (generated through scrolls) into Scrips. Export can club multiple Shipping Bills for generating Scrips.
     

  4. Exporters can use such scrips only for payment of Basic Customs Duty
     
  5. Such Scrips are transferrable: Exporters can also transfer such e-scrips to any other entity having IEC and ICEGATE registration.

Monitoring, Audit and Risk Management System: Exporters would be required to maintain proper records substantiating claims made under the RoDTEP scheme. Government may physically verify such records on sample basis based on risk and other relevant parameters. Earlier the government halted the scheme for further clarification, now the guideline would help exporters to get the incentives in more viable manner.
read more

 

 

Back