Features of RoDTEP Scheme

Currently, only the GST and the import customs duties levied on inputs required for the manufacturing of export products are either exempted or refunded in some or another way. Input tax credit (ITC) of GST paid is available, and also if exported on payment of duty then IGST refund can be claimed. Import Custom duties on raw materials are exempted through the Advance Authorization scheme or refunded through the Duty Drawback scheme. However, still, there are many duties and taxes levied by the Central and State government which are not refunded. It adds up to the final cost of resultant products and makes Indian products uncompetitive in the global market.

The following features of the RoDTEP Scheme has been given below. (Refer to the image)

Refund of Embedded Duties and Taxes

The RoDTEP Scheme aims to refund all those hidden taxes and levies, For example:

1. Central & state taxes on the fuel (Petrol, Diesel, CNG, PNG, and coal cess, etc.) used for
   transportation of export products.
2. The duty levied by the state on electricity used for manufacturing.
3. Mandi tax levied by APMCs.
4. Toll tax & stamp duty on the import-export documentation. Etc.

The Scheme will ensure that the Exporter only exports goods and services, not any kind of taxes, and the RoDTEP Scheme would cover all indirect Central & State taxes that are not reimbursed in any existing scheme.

WTO Compliant Scheme 

The RoDTEP Scheme is WTO compliant since it is not an additional Incentive, it is just the refund of hidden taxes. The RoDTEP Scheme will help the exporters to meet international standards and make their goods cost-competitive in the international market by assured duty benefits.

Ineligible Supplies / Items / Categories under the RoDTEP scheme

The RoDTEP Scheme would operate in a budgetary framework for each financial year and a 12,400 Cr outlay has been announced for the FY 2021-22.

Find the list of ineligible goods under the RoDTEP Scheme.

• Export of imported goods is given under paragraph 2.46 of FTP.
• The goods which are restricted for export beneath “Schedule-2 of Export Policy in ITC (HS).
• Goods which are banned for export beneath “Schedule-2 of Export Policy in ITC (HS).
• Supplies of products manufactured through DTA units to SEZ/FTWZ units.
• Export of goods taken into use after manufacturing.
• The Exports for which the electronic documentation in ICEGATE EDI has not been made.
• The exported goods claiming the benefits of notification No. 32/1997- Customs dated 1st April 1997.
• The goods are exported from Free Trade Zones (FTZ) Export Processing Zones(EPZ) or Special Economic Zones(SEZ).
• The goods obtained or exported through EOU & produced in EHTP and BTP.
• Deemed Exports.
• The Export good is subjected to a minimum export price or export tax.
• Products manufactured partly or wholly in a warehouse beneath section 65 of the Customs Act, 1962 (52 of 1962).
• Goods exported under Advance License/Special advance license or tax-free import authorization.

Introduction of RoDTEP Scheme to Chemicals, Pharmaceuticals, Iron & Steel Exporters

The government has extended the RoDTEP scheme to Chemical, Pharma & Iron & steel Exporters covering chapters 28,29,30 & 73 of ITC HS code.

The Rate of Incentive is in the range of 0.5% to 2%, which varies as per the ITC HS Code.

The majority of the Items are given 0.8% Incentive.

As per the current notification, this scheme will only be applicable for all Exports made after 15.12.2022 till 30.09.2023

We request all our Clients, Kindly Please make all the necessary declarations at the time of Filing Shipping Bills & Do not forget to tick YES for RoDTEP.

To claim RoDTEP Incentives, Exporters need to get a Class - 3 Digital Signature along with mandatory Registration on the Icegate Website.

Procedure to avail the benefits under RoDTEP Scheme

There are the four mandatory steps to avail the benefits under RoDTEP Scheme as follows - 

Declaration in the Shipping Bills - 

It is mandatory for the exporters to indicate in their Shipping Bill whether or not they intend to claim RoDTEP on the export items from 01/01/2021. Unlike Drawback, there will be no need to declare any separate code or schedule serial number for RoDTEP.

The exporter will have to make the following declarations in the SW_INFO_TYPE Table of the Shipping Bill for each item:

Additionally, for every item where “RODTEPY” is claimed in INFO CODE, a declaration has to be submitted in the Statement Table of the Shipping Bill as below.

ICEGate registration

The exporter has to register on ICEGate to get the login Id and Password with the help of an Email id, Mobile number, and with an Import-Export Code.

[Please refer to our detailed step-by-step Guide for Icegate Registration Process - https://KK Aequitas.com/icegate-registration/]

Creation of the RoDTEP Credit Ledger

To avail of the benefits under RoDTEP exporter has to create first the RoDTEP credit ledger account by logging onto the ICEGate portal i.e. using Class 3 DSC. The following information is available in the ledger account -

• Scroll Details
• Scrip Details
• Transaction Details
• Transfer Scrips
• Approved Scrips Transfer

Application procedure and scroll generation 

• An application shall be filed online using a Class 3 Individual type Digital Signature Certificate on ICEGate Website (https://www.icegate.gov.in/).
• The refund under RoDTEP Scheme is in the form of electronic duty credit scrip which is transferable or can be utilized for self-consumption post-generation of Scrip.
• The RoDTEP scrolls would be generated on FIFO (First in first out) basis w.e.f. 01/01/2021.

Watch this video on RoDTEP Scheme which explains What are the duties & taxes going to be refunded? Expected Incentive rates? When is it going to be applicable? Who all are eligible to claim? Its application process & finally how can we at KK Aequitas Consultants help you in getting your RoDTEP benefits from the Government.

Documents required for RoDTEP Scheme Application

The following documents have to be prepared before applying for the benefits under RoDTEP Scheme -

• Class 3 DSC
• Valid Icegate Registration with Login Id and password.
• Shipping bills
• Valid RCMC Copy

Note - Please note that E-brc is not mandatory for RoDTEP application, however, we advise all our clients to first obtain e-brc and then only apply for RoDTEP, in order to avoid any notices in the future, if any e-brc is not generated.

The last date of application for each shipping bill would be a maximum of 1 year from the Shipping Bill date or the scroll generation date whichever is later.

Rate of Rebate Under RoDTEP Scheme

• As per Notification No. 19/2015-2020, Dated 17th August 2021, the Government has announced the benefit rates for 8555 export products.
• All the eligible products with the benefit rates given under Appendix 4R notified on 17/08/2021 under notification number 19/2015-2020.
• Exporters will be given tax refunds in the range of 0.5 - 4.3 percent. The scheme would operate in a budgetary framework for each financial year and a 12,400 Cr outlay has been announced for the FY 2021-22 under RoDTEP Scheme.

Want to know the Benefit Rates under RoDTEP Scheme for your Export Product? Just fill the below form and our team will get back to you with the latest rates within 1 hour. 

Trade DGFT Scrips with Confidence at KK Aequitas. Our platform offers a secure and seamless marketplace for buying and selling DGFT Scrips. Unlock the benefits of these valuable instruments, such as offsetting import duties and promoting exports. Start trading DGFT Scrips today and elevate your international trade operations.

How can we assist you to claim benefits under the RoDTEP scheme?

We are a team of highly motivated DGFT professionals providing DGFT services over the years. Our goal is to stay ahead of the curve by being on top of the news, comprehending new schemes and all the policies in them, realizing the benefits for exporters and importers, and turning the guidelines into a simple form that is easily understandable to our clients. At KK Aequitas our experts perform the following task for you - Guidance would be provided about the declarations that have to be there in shipping bills to avail the maximum benefits under various export promotion schemes given in the new foreign trade policy.

Assistance in document preparation, we understand the importance of accurate documentation for fast processing.

• ICEGate registration and Digital signature preparation.
• Creation of RoDTEP Credit Ledger account.
• Application on ICEGate to avail the benefits under RoDTEP.
• Regular follow-up with Customs Icegate Portal for the license.
• We complete the entire process in a time-bound manner.
• We also guide in Sale/Purchase of RoDTEP Scrips and ensure you get the best value for your scrips.