editor RoDTEP is an acronym for the ” Remission of Duties & Taxes on Exports Products ” Program. This means that export taxes and tariffs are a major focus. This program, which provides incentives to exporters, began operations on Jan 1, 2021.
In place of MEIS, we now have RoDTEP. Under the program, Indian exporters are assured of getting their taxes and levies back. The goal of this program is to incentivize exports and increase export volume.
By reducing export tariffs, both RoDTEP and MEIS want to increase shipments to India. Two percent and seven percent of the FOB value are available to Indian exporters. The Finance ministry assured us that the benefits would exceed those of the MEIS program, and that the level of compensation would be set according to the quality of the country’s exports. How does the RoDTEP plan work? Let’s find out.
Characteristics of the RoDTEP Program
Completely computerized credit processing. Electronic scripts, which may be transferred, are used for reimbursements. A digital ledger will be used to record and monitor these tax refunds.
Refunds will be issued for duties and taxes that were previously not eligible for reimbursement. Mandi, value-added tax, coal cess, and the Central Excise duties on fuel are all refundable under this plan. All items covered by the MEIS are included in the RoDTEP scheme at present.
In order to maintain uniformity, RoDTEP is a cross-sector initiative. It’s all-encompassing; even the textile industry is included. The RODTEP Scheme ensures that exporters receive 100% of your paycheck by refunding them the duties and taxes they paid on exported goods. A committee will be formed to make decisions regarding the program’s rollout across industries, the degree of benefit for each sector, and other issues as they arise.
Due to digitization, document authentication is a rapid and simple process. To guarantee timely and correct transaction processing, an IT-based risk assessment application will be used to verify exporters’ records.
RoDTEP Scheme Eligibility Requirements
In order to participate in the RoDTEP program, exporters must first satisfy a number of prerequisites.
- Shipping through courier is an option when exporting products via e-commerce platforms that provide this program.
- Anyone who exports goods, whether as a factory or a retailer, can participate in this program.
- Merchandise and items destined for export must originate in India. Foreign goods are not permitted in any way.
The Advantages of the RoDTEP Scheme
The exporter’s access to credit will be shown in the ICEGATE entry. The exporter is responsible for proving to the port that a certain fare item qualifies for the RoDTEP discount. The RODTEP scheme’s tax rebates on exported goods can indirectly lead to salary savings for exporters by reducing their overall operating costs. These credit scrips can be used to settle standard bills or secure reimbursements. Moreover, they facilitate the sending of money to other carriers.
RoDTEP’s cycle for maturing and asserting scrips goes as follows:
- As once EGM (Export General Manifest) is filed, customs will be in charge of the situation.
- There must be an assertion of RoDTEP on exporter freight bills.
- All Shipping Bills will be thoroughly examined after the matter has been resolved. The client’s ICEGATE gateway account will then be updated with the new details.
- After opening a RoDTEP account for credit, exporters can select the transport bills for which they want scrips to be generated.
- To establish credit with RoDTEP, exporters should use the ICEGATE portal.
- Automatically apply the exporter’s discount once scripts are completed. The money can subsequently be used for eligible commitments, imports, or a switch to a different carrier.
- It is unclear whether or not commodities included by the RoDTEP scheme will automatically have their rates lowered by the Indian government.
Concerns with the RoDTEP Plan
- The concept is designed to assist both retail dealers and wholesale exporters.
- The textile industry may also benefit from the RoDTEP initiative. Industries that rely heavily on laborers will gain greatly from the MEIS Scheme.
- To participate in RoDTEP, a company’s annual sales volume is irrelevant.
- All exports must originate in India to qualify for the scheme’s advantages.
- Products that are re-exported are excluded from this policy.
How to apply for the RoDTEP Program online?
You can apply for RoDTEP in the same way you would for the Rebate of State & Central Taxes and Duties.
Here are the measures you can take to register the RoDTEP program:
- Sign in to ICEGATE (icegate.gov.in).
- Submit your application with a Class 3 Specific Type Digital Signature Certificate.
- Please add the following materials with your application and attach them below.
Application for the RoDTEP
- eBRC (Electronic Bank Realisation Certificate).
- Shipment Receipts
- RCMC (Registration Cum Membership Certificate)
- Class 3 DSC (Digital Signature Certificate)
RoDTEP Scheme
Here is an in-depth explanation of how the RoDTEP program works:
1. Establish the RoDTEP credits ledger
The ICEGATE platform is where exporters can get started with a digital credit account (www.icegate.gov.in). Class 3 DSCs can be used to gain entry to RoDTEP privileges. If this is the first time an exporter has visited the site, they will have to create an account before they can access the features.
Following a successful login, the user can generate a credit ledger by selecting “RoDTEP” from the menu.
By using this service, you will have access to the following data:
- Details can be found by scrolling
- Particulars of the Script
- Information about a Transaction
- Scrips for transfer
- Validated scrip
2. Invoices for Transport: Statement
If an exporter wants to take advantage of RoDTEP, they must indicate so on their shipping bills; if they don’t want to, they must also declare RoDTEP. In the absence of certain particulars on the shipping bill, the exporter would not be compensated.
3. Processing of claims and creation of scroll
Shipment invoices will be profiled by RMS once the carrier has submitted the Export General Manifest. They are routed to the proper scroll queues or to an authority for intervention. The RODTEP Scheme provides tax benefits to exporters, which could potentially make it easier for individuals to apply for home loans. As once scrolls have been generated, the funds will be available as credits on the ICEGATE platform.
4. Making and Using Scripts
Credits in the site can be exchanged for credit scrips, which can then be used by exporters. A one-of-a-kind identifier for usage with Scrip is assigned to each customer. Credits are added to the ledger each moment a script is written.
Author’s Bio:
Mr. Mehul Goyal is a professional DGFT Consultants with experience of more than 30 years and specialized in the field and is offering DGFT Consulting Services all over India. He is working with many importers and exporters even before DGFT was instigated in the markets.
