This comprehensive guide provides step-by-step instructions on how to claim benefits under the RoDTEP scheme. Understand the documentation requirements, eligibility criteria, and procedural nuances essential for successfully availing incentives aimed at promoting India's export competitiveness.
RoDTEP Scheme Claim – Overview
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was introduced by the Government of India to boost exports by reimbursing various taxes and duties that are not refunded under other mechanisms. This scheme is a significant step towards making Indian exports more competitive in the global market by ensuring that the exported products are not burdened with embedded taxes.
What is the RoDTEP Scheme?
The RoDTEP scheme aims to refund the embedded central, state, and local duties/taxes that are not currently being refunded under any other mechanism. These include but are not limited to, VAT on fuel used in transportation, mandi tax, duty on electricity used during manufacturing, and others. This scheme replaces the Merchandise Exports from India Scheme (MEIS) and extends to all sectors and products, making it a comprehensive export incentive program.
Silent Features of the RoDTEP Scheme
- Wide Coverage: Applicable to all sectors, covering a broad range of goods for exports.
- Automation: The scheme is fully digitized to ensure faster disbursement and reduced human intervention.
- Neutralization of Taxes: It ensures that the taxes and duties borne on the exported products are refunded, which were not previously reimbursed.
- Scrip Based: The scheme operates through transferable duty credit scrips that can be used for payment of various duties.
- Eligibility: Exporters who have been subjected to unrefunded duties and taxes are eligible to claim benefits under this scheme.
Process for Claiming Scrips Under RoDTEP Scheme
The procedure to claim the RoDTEP scheme benefits involves multiple steps, ensuring that the exporters receive the rightful refund for the duties and taxes embedded in their products.
Create RoDTEP Credit Ledger
- Registration: Exporters need to register themselves on the ICEGATE (Indian Customs EDI Gateway) platform.
- Credit Ledger: Upon registration, a credit ledger will be created for the exporter in the customs system. This ledger will be used to credit the refunds under the RoDTEP scheme.
Declare all Shipping Bills
- Shipping Bills Declaration: Exporters must ensure that all shipping bills related to their exports are declared accurately.
- RoDTEP Declaration: While filing the shipping bills, exporters should specifically declare their intent to claim the benefit by indicating the relevant scheme code.
Generate Scroll after Claim Processing
- Scroll Generation: Post-shipment, the customs system processes the claims based on the declarations made in the shipping bills. Once the claim is processed, a scroll (a detailed list of shipping bills and the corresponding scheme benefits) is generated by the system.
- Notification: Exporters will be notified about the generation of the scroll through the ICEGATE platform.
Claiming of Credits and Utilization of Scrips
- Credit Claim: Exporters need to log into their ICEGATE account to check the credits posted in their scheme credit ledger.
- Utilization: The scrips can be utilized for payment of basic customs duties, among other duties.
- Transferability: These scrips are transferable and can be sold to other importers/exporters if the exporter does not need to use them directly.
The process to Transfer the Scrips
- Request Transfer: Exporters can request the transfer of scrips through the ICEGATE portal.
- Approval and Transfer: Once the request is submitted, it will be processed by the customs authorities. Upon approval, the scrips can be transferred to another entity’s credit ledger.
- Verification: The recipient of the scrips should verify the transfer in their ledger and can then use them for payment of duties or further transfer.
Conclusion
The RoDTEP scheme is a transformative initiative aimed at making Indian exports more competitive by neutralizing the taxes and duties embedded in export products. The digitized and streamlined process ensures that exporters can claim their benefits efficiently, supporting the overall growth of Indian exports. By understanding and following the detailed procedures for claiming and utilizing RoDTEP scrips, exporters can maximize their benefits under this scheme.
FAQs on RoDTEP Scheme Claim
How do I get a RoDTEP Scheme Rates?
The Scheme rates are published by the government and can be accessed on the official DGFT (Directorate General of Foreign Trade) website. These scheme rates are determined based on the sector and product, reflecting the various unrefunded taxes and duties applicable to them.
How can I claim my export RoDTEP?
To claim the RoDTEP benefits, exporters must declare their intent in the shipping bills at the time of export. Post-export, the claims are processed, and the corresponding credits are posted in the exporter’s scheme credit ledger on the ICEGATE platform.
How to calculate export drawback?
Export drawback is calculated based on the rates provided by the government, which represent a percentage of the FOB (Free on Board) value of the exports or a fixed amount per unit of the exported goods. The rates take into account the customs duties and other taxes borne by the exported goods.
Who is eligible for RoDTEP scheme?
All exporters, including manufacturers and traders, who export goods from India are eligible for this scheme, provided they have borne certain unrefunded taxes and duties in the course of producing the exported goods.
What are the benefits of RoDTEP?
The primary benefit of the this scheme is the refund of embedded taxes and duties that are not otherwise refunded. This enhances the competitiveness of Indian exports, helps in cost reduction, and ensures that export goods are not loaded with domestic taxes.
Is GST applicable on RoDTEP scheme?
The scheme specifically refunds embedded duties and taxes that are not refunded under other mechanisms, including GST. Therefore, GST on inputs used in exports is not covered under this scheme but under other mechanisms like GST refunds and input tax credit.
