RoDTEP stands for " Remission of Duties and Taxes on Exported Products” Scheme. So it is concerned with the duties and taxes on export products. It is an exporter benefit scheme, which went into effect on January 1, 2021. RoDTEP replaced the MEIS scheme. The scheme guarantees that Indian exporters get refunds for taxes and duties paid. This scheme is designed to encourage export and provide incentives for the exporters.
RoDTEP and MEIS are both schemes that encourage exports to India by lowering export duties. Indian exporters can get between 2% to 7% of the free-on-board value. The Ministry of Finance informed us that the rewards would be greater than the MEIS scheme, and the country's products will determine the rate of reward. Let's learn in detail about the RoDTEP scheme.
Did You Know?
RoDTEP means remission of duties & taxes on exported products. This new scheme is effective as of January 1, 2021. It replaced the MEIS scheme challenged at the WTO by the US and was ruled in India's favour by a WTO dispute panel. This scheme was created to increase the exports of low-quality commodities.
Features of the RoDTEP Scheme
- A fully automated credit system. Reimbursements are made in electronic scripts, which are transferable. These duty credits will be kept and tracked by a computerised ledger.
- Duties and taxes previously non-refundable will be refunded. This scheme will reimburse mandi, VAT, coal cess and Central Excise tax on fuel. RoDTEP Scheme currently covers all goods under the MEIS (Rebate of State, Central Taxes and Levies)
- To ensure consistency, RoDTEP is a multi-sectoral program. It covers all industries, even textiles. A committee will also be established to decide how the program will be implemented across multiple industries, the extent of each industry's benefit and other pertinent issues.
- Digitisation makes it easy to verify documents quickly. Exporters' records will be checked using an IT-based risk management software to ensure speedy and accurate transaction processing.
Eligibility Criteria to Apply for the RoDTEP Scheme
Every exporter must meet certain eligibility requirements to be eligible for the RoDTEP scheme.
- This scheme is also available for goods exported by courier via e-commerce platforms.
- This scheme is open to both manufacturer and merchant exporters.
- Exports of goods and products must be made in India. No products from other countries are allowed.
RoDTEP Scheme Benefits
The ICEGATE entry will provide insight into the credit benefits enjoyed by the exporter. The exporter must show the port the RoDTEP benefit for a particular fare item. Using these credit scrips to pay traditional obligations or guarantee refunds is possible. They also allow for the transfer of funds to other shippers.
The following is the cycle for ageing and asserting scrips under RoDTEP:
- The customs will handle the case once the Export General Manifest (EGM) has been documented.
- Exporters should assert RoDTEP in their transportation bills.
- After the case is handled, a detailed look will be made with all Shipping Bills. This information will then be available in the client's account on the ICEGATE gateway.
- After establishing the RoDTEP credit account, exporters can log in to their records and select the transportation bills they wish to create scrips.
- Exporters should log in to the ICEGATE entryway and create a RoDTEP credit record.
- Once the scripts have been produced, the discount will automatically be credited to the exporter's account. It will then be available for use during an instalment of qualified obligations, imports, or for a move towards another shipper.
The Government of India has not yet provided any guidance on reducing RoDTEP scheme rates necessarily for items under the RoDTEP scheme.
Concerns Regarding the RoDTEP Scheme
- Both merchant exporters (traders) and manufacturer exporters (traders) can enjoy the benefits of this plan.
- RoDTEP scheme could be beneficial to all industries, even the textile industry. The MEIS Scheme will highly benefit labour-intensive industries.
- There is no minimum turnover necessary to be eligible for RoDTEP.
- To be eligible for the scheme's benefits, exports must come from India.
- This does not apply to reexported products.
How Do I Apply Online for the RoDTEP Scheme?
The RoDTEP application process is similar to the Rebate Of State & Central Taxes and Levies.
To apply for the RoDTEP scheme, you can follow these steps:
- Log on to ICEGATE (icegate.gov.in).
- Use a Class 3 Individual Type Digital Signature Certificate to file your application.
- Attach the following documents and link them with the application
RoDTEP Application Form
- Electronic Bank Realisation Certificate (eBRC).
- Shipping Bills
- Registration Cum Membership Certificate (RCMC)
- Digital Signature Certificate (DSC), Class 3
This is a step-by-step guide on how the RoDTEP scheme operates:
1. Create the RoDTEP credit ledger
First, exporters must create an electronic credit account using the ICEGATE portal (www.icegate.gov.in). You can use the Class 3 Digital Signature Certificates (DSC) to access the RoDTEP benefits. If an exporter is logging in for the first time to the portal, they will need to register and log in with the credentials.
After logging on successfully, the user can choose the "RoDTEP" option from the drop-down menu to create a credit ledger.
This service allows you to access the following information:
- Scroll details
- Scrip details
- Transaction details
- Transfer scrips
- Approved scrips
2. Shipping bills - declaration
Exporters who wish to claim RoDTEP benefits must declare RoDTEP on their shipping bills and RoDTEP if they do not want to use the benefits. The exporter will not be reimbursed if the shipping bill doesn't include these details.
3. Claim processing & scroll generation
After the carrier has filed the Export General Manifest, the shipping bills will be profiled by RMS. They are sent either to an officer for intervention or directly to the appropriate scroll queues. The amount can be accessed on the ICEGATE portal in credits once the scrolls have been generated.
4. Creating and using scrips
Exporters can convert credit scrips from the credits in the portal into credit scrips. Each user receives a unique Scrip ID. Every time a script is created, entries are made to the credit ledger.
RoDTEP vs MEIS
1. Accessible on the fare to products: Impetuses
1. Discount on obligations and charges not currently being repaid through other schemes
2. This is not consistent with WTO standards.
2. In accordance with the WTO standards.
3. The FOB (Free On Board) value of all fares is 2% to 5%
3. The item-based % is not yet determined
4. As adaptable scrips.
4. As an adaptable obligation credit, or electronic scripts that can be kept up to date through an electronic record.
RoDTEP was created to replace the merchandise exports from India scheme (MEIS). The previous scheme was not in compliance with WTO's standards. This scheme aims to provide incentives for small exporters through duty scrips. Exporters will receive greater insurance coverage, lower interest rates on capital loans and financial incentives for exports.
Exporting business relies on the calculation a lot. Therefore, you must keep all debit and credit calculations on point.
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