RoDTEP Scheme Latest News – The Operational Procedure & Benefit Rates – Afleo

What is RoDTEP Scheme?

RoDTEP (Remission of Duties and Taxes on Export Products) entered into force on 1 January 2021 by replacing the previous system MEIS which was not compatible with WTO norms.

The recently launched RoDTEP system is WTO compliant policy, the exporters can get refund of all built-in duties/taxes on the export goods at local/state/central level which were not refunded under any of the existing schemes to make the export goods cost-competitive at the global market.

The preferential rates and application procedure have been released by the government and it has raised many questions for the exporters, there is demand from many exporting companies to seek clarification on the RoDTEP scheme. Therefore, in this post we have brought the latest news and more clarification about RoDTEP Scheme.

[Please refer to the below image to know when the RoDTEP Scheme was introduced approved and implemented by the Government of India.]

Why was the RoDTEP scheme introduced?

The RoDTEP system was introduced in response to international pressure to suspend its export incentive programs. The previous MEIS system was inconsistent with WTO guidelines and provided additional benefits of 2% to 7% of the FOB value of eligible exports. A complaint was filed against India at the WTO, USA, stating that the benefits given to exporters under the MEIS scheme provide undue benefits that are against WTO norms.

According to WTO guidelines, a country cannot provide export subsidies such as MEIS if its per capita income is over US$1,000 and India's per capita income crossed over US$1,000 in 2017. India subsequently lost the target at the WTO and had to come up with a new WTO compliant system to help Indian exporters.

[To Make sure not to lose benefits on any of the past shipments under the MEIS Scheme visit our page by clicking on – “MEIS Scheme”]

RoDTEP Scheme – Latest News

Concessional rates under RoDTEP Scheme

  • The preferential rate has been notified by DGFT under RoDTEP Scheme for 8555 export products as per Notification No. 19/2015-2020, dated August 17, 2021.
  • The RoDTEP scheme would work within a budget framework for each financial year and a budget of Rs 12,400 crore has been announced for the financial year 2021-2022, exporters will be given benefits in the range of 0.5 – 4.3 percent with a cap on the unit value of products Where it is needed.

As per the latest guidelines, sectors like pharmaceuticals, steel, organic and inorganic chemicals have not been included for benefit under the RoDTEP scheme. According to the Commerce Secretary, these sectors are performing well, which is why they have been left out for the benefits.

[There are various export categories that are not eligible to avail of the benefits under the RoDTEP Scheme, Please check your products too whether your export goods are eligible or not by visiting our page – RoDTEP Scheme]

Operational Procedure for the RoDTEP Scheme

The system was operationalized on 01.01.2021, and was initially activated only to capture the RoDTEP scheme in the freight bills and the approximate benefit amount was recorded according to the refund processing.

  • The benefits would be calculated on a value equal to the declared FOB export value of the said goods or up to 1.5 times the market price of the said goods, whichever is lower.
  • The online application must be made on the ICEGate portal using Class 3 digital signature.
  • Mandatory registration in advance must be done at ICEGate portalafter registration, a RoDTEP Ledger account has to be created on the ICEGate portal where the duty credit amount would be stored.
  • After EGM Filling the scroll would be generated, scroll generation would be on FIFO basis (First In First Out) wef 01/01/2021.
  • The scrolling would be generated in a staggered manner to avoid overloading the system as it waits for a long return.

On the constitution of the RoDTEP committee

The exporters exporting under Advance Authorization (AA)/EOU/SEZ remained outside the scheme of the benefits. On the request of the industry to include them, the government has reconstituted a committee for determination of RoDTEP rates for AA/EOU/SEZ exports.

The new committee will also prepare the report with recommendations on matters relating to errors/deviations, in respect of the notified rates for RoDTEP. The committee must submit the report within 8 months.

The RoDTEP system would operate within a budget framework for each fiscal year, according to BVR Subhramanyam, Commerce Secretary, the system would be reviewed regularly items could be included or excluded depending on the situation.

How can Afleo help you get the RoDTEP license?

We at Afleo Consultants are India's leading export import consultants, with rich experience of 10+ years in the domain. We specialize in all DGFT related issues, Export Promotion Schemes like RoDTEP, MEIS, SEIS, Advance License, EPCG, DFIA, AEO Certification, Star Export House Certification, Duty Drawback, IGST Refund, etc. We understand new schemes and all policies under FTP, realizing the benefits for exporters and importers, transforming the policies into a simple form that is easy to understand for our customers.

The RoDTEP Scheme expert would perform the following task for you to avail the benefits under RoDTEP Scheme –

  • Guidance would be given on the declarations that must be included in the shipping bills to avail the benefits under the RoDTEP Scheme.
  • Assistance would be given in documentation
  • Preparation of certificate for digital signature.
  • ICEGate registration on the online portal.
  • Creation of RoDTEP Credit Ledger Account.
  • Application on ICEGate to avail the benefits under RoDTEP.
  • Regular follow-up with Custom for the license.
  • We carry out the entire process in a time-bound manner.

[Not sure whether your company is taking all the Export incentives notified by the Govt? – Refer to our article on “18 latest Export promotion schemes/Export Incentives in India”]

We have a presence in PAN India.

We would appreciate your comments and views on the above topic.

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