Remission of Duties and Taxes on Export Products is the full name of this programme. It is a new programme created to replace the current MEIS that will take effect on January 1st, 2021. (Merchandise Exports from India Scheme). With the help of the plan, exporters will be given reimbursements for imbedded taxes and customs that were previously non-recoverable. With the strategy, exports, which had previously been rather low in volume, were to be increased.
What is it RoDTEP?
Remission of Duties and Taxes on Exported Products Scheme is what the acronym stands for. As the name implies, the programme remits tariffs and taxes for exporters to make their lives easier and advance global commerce. Launched on January 1st, 2021, this programme supplanted the previous MEIS programme.
Eligibility Requirements to profit from the RoDTEP programme
The RoDTEP programme has various qualifying requirements, just like any other scheme.
- One fundamental prerequisite for participation in the programme is that all goods produced and generated for export must be done so in India. Otherwise, the exporter or producer will not be qualified to participate in the plan for the relevant items.
- Turnover – There is no minimum turnover criterion for this program’s eligibility. If you are a trader or manufacturer, you are qualified regardless of the turnover amount. However, you must be a legitimate producer or trader.
- Industry/Sector – There is no specific sector filter in this
- Any exporter, regardless of industry, is qualified to use the full benefits of this programme and will get the full tax. One of the main advantages of the RoDTEP method is this. reimbursement. Sectors with a lot of manual work receive preference over other sectors.
- Online retailers – You may take advantage of the new scheme’s perks if you’re an online retailer who manufactures in India and ships your products internationally through logistic partners without having any additional paperwork or paying extra fees.
- SEZ/EO – Special trading platforms like SEZs/EOs are also entirely eligible for all benefits in addition to any current programmes or benefits they may be receiving from others.
Features of the RoDTEP Program
Only the GST and import customs charges assessed on materials used in the production of export products are now exempted from or reimbursed in some manner. The GST paid can be refunded as input tax credit (ITC), and IGST can also be claimed if the item was exported after paying duty. Import Raw material customs charges are either waived under the Advance Authorization system or repaid under the Duty Drawback programme. Yet many of the duties and taxes collected by the federal and state governments are not reimbursed. It raises the overall cost of the finished goods and lowers the competitiveness of Indian goods on the international market.
Documents Required for applying to the RoDTEP Scheme
The documents required to apply for RoDTEP Scheme:
- Shipping bills
- Electronic Bank Realisation Certificate (eBRC)
- DSC – Class 3
- Registration Cum Membership Certificate (RCMC)
RoDTEP Scheme Benefits
- Reimbursable Taxes and Duties
- Digital Credit Ecosystem that is fully tech-driven
- Digital verification and tight security systems in place
- One scheme – all sectors
Why RoDTEP Scheme is Required?
In the World Trade Organization, the US has contested India’s major export subsidy programmes because it believed they were unfair to American workers. The WTO’s dispute panel decided against India, finding that the government of India’s export subsidy programmes had breached the organization’s rules. The group also suggested ending the export subsidy programmes. As a result, the RoDTEP Scheme was created in order to maintain India’s WTO compliance.
The following were some of the export subsidy programmes recommended to be withdrawn:-
- Merchandise Exports from India Scheme
- Export Oriented Units Scheme
- Electronics Hardware Technology Parks Scheme
- Bio-Technology Parks Scheme
- Export Promotion Capital Goods Scheme
- Special Economic Zones (SEZ) Scheme
- Duty-Free Imports for Exporters Scheme
How Do I Apply For The RoDTEP Program?
The new RoDTEP is very easy to subscribe to, and because it is completely automated, the exporter’s experience with it is seamless, quick, and safe. He is not required to travel from office to office lugging a tonne of paperwork and requesting reimbursement.
- Make sure the exporter is producing the products in India.
- The exporter must make a declaration for this reimbursement in the shipping bill in order to make a claim for reimbursement under this programme.
- To check the claim, the Department of Customs assumes control. The claim is handled after it has been verified. The customs agency is in charge of regulating all of this.
- A ledger with the appropriate amount will be produced once the claim has been processed and validated, and the user can view it on the platform from his end.
- The users may then utilise the platform to obtain this information and refine it in a few easy steps.