What is RoDTEP Scheme?
Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme replaced the erstwhile MEIS Scheme and was applicable on exports made with effect from 01.01.2021.
Under RoDTEP Scheme, duty credit is issued to the exporter in lieu of remission of any duty or tax or levy, chargeable on any material used in the manufacture or processing of goods or for carrying out any operation on such goods in India that are exported, where such duty or tax or levy is not exempted, remitted or credited under any other Scheme.
Such duty or tax or levy is remitted to the exporter in form of transferable duty credit scrips issued under Section 51B of Customs Act, 1962 and are maintained in the electronic credit ledger of the recipient in the customs automated system.
Remission under RoDTEP is calculated as a percentage of declared export Free on Board (FOB) value of the eligible export product limited to the value caps as applicable for certain Harmonized System (HS) Codes or is at specific value as detailed under Appendix 4R of Foreign Trade Policy (FTP).
It has been further provided that such FOB value of the said goods for calculation of duty credit allowed under RoDTEP Scheme shall be limited to the 1.5 times the market of value of said goods.
In Foreign Trade Policy, provisions of RoDTEP Scheme regarding scheme guidelines and rates are mentioned under Para 4.54 to Para 4.59 of FTP 2015-20.
The list of products eligible for RoDTEP, respective rate for RoDTEP calculation along with value caps wherever applicable are notified in Appendix 4R under Para 4.59 of Foreign Trade Policy (FTP) 2015-20.
Highlights of RoDTEP Scheme
- Shipping bills and Bill of Export filed on or after 01-Jan-2021 are eligible for RoDTEP.
- Shipping bills and Bill of Export having claim for duty credit under RoDTEP Scheme shall be processed and scrolls would be generated in the customs automated system (i.e. ICEGATE).
- Scroll details including shipping bill or bill of export, duty credit allowed and date of generation of scroll are visible in ICEGATE
- These Scrolls available in ICEGATE are generated into RoDTEP E-scrips. One or more scrolls at a customs station can be combined while creating a single E-Scrip.
- An E-scrip can be generated within a period of one year from the date of generation of the scroll.
- In case E-scrip is not generated before the expiry of validity of Scroll (i.e. one year from the date of generation of scroll), then duty credits available in each scroll will be combined customs station wise for each Scheme (separately for RoDTEP and RoSCTL).
- E-Scrips generated under RoDTEP Scheme are freely transferable.
- On generation, E-scrip gets automatically registered with Customs station of export and separate application need not be filed for the same.
- RoDTEP E-Scrips shall be used for payment of customs duties specified in First Schedule to the Customs Tariff Act, 1975 i.e. Basic Customs Duty (BCD) only on imports made through customs automated system.
- E-scrip shall be valid for a period of two years from the date of its creation in Ledger in ICEGATE.
(Initially the validity of scrip was one year but later vide Circular No. 21/2022- Customs dated 26-09-2022, validity period of scrips was increased from one year to two years from the date of their generation)
- Any credit remaining unutilised in E-scrip at the end of validity period shall lapse.
Process of E-scrip generation under RoDTEP Scheme
To avail the scheme, exporter shall make a claim for RoDTEP in the shipping bill/ bill of export by way of making a declaration therein in this regard.
- Once Export General Manifest (EGM) is filed, claim will be processed by Customs.
- After being processed, a scroll with all the individuals Shipping Bills for admissible amount would be generated and made available in the user account of the exporter in the ICEGATE.
- E-scrips can be generated by the exporter after selecting the Scroll available in ICEGATE.
The exporter has the option of combining duty credits available in a scroll or a number of scrolls at the particular customs station of export for generating E-scrip.
RoDTEP against exports made to Nepal, Bhutan and Myanmar
RoDTEP incentive for exports made to Nepal, Bhutan and Myanmar shall be allowed only upon realisation of export proceeds against irrevocable letters of credit in freely convertible currency established by importers in Nepal, Bhutan and Myanmar in favour of Indian exporters for the value of such goods.
Realisation of Export Proceeds
Duty Credit allowed under RoDTEP scheme is subject to realisation of export proceeds within the time period allowed under FEMA or extension provided by RBI in this regard.
In case the export proceeds are not realised within the allowed time period, RoDTEP amount allowed to the exporter, against the non-realised export proceeds, along with interest u/s 28AA of Customs Act are to be repaid within fifteen days from expiry of the said period.
Ineligible Exports for RoDTEP Scheme
Details of ineligible export categories or sectors are mentioned in Table I of the RoDTEP Scheme Notification 76/2021- Customs (N.T.) dtd 23-09-2021. The categories are as follows:
Sl No. | Export Categories which are ineligible for RoDTEP Scheme |
1 | Goods which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC-HS |
2 | Export of imported goods covered under paragraph 2.46 of Foreign Trade Policy |
3 | Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India |
4 | Goods subject to minimum export price or export duty |
5 | Deemed exports under Foreign Trade Policy |
6 | Goods manufactured or exported by any of the units situated in SEZ/ FTWZ/EHTP/BTP/ EPZ |
7 | Goods manufactured or exported by a unit licensed as 100% EOU |
8 | Goods exported under Advance Authorisation or Duty Free Import Authorisation issued under the relevant Foreign Trade Policy |
9 | Goods manufactured and supplied by units in Domestic Tariff Area to units in SEZ/FTWZ |
10 | Goods manufactured in SEZ/ FTWZ / EOU / EHTP / BTP/ EPZ and exported through DTA unit |
11 | Goods manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962) |
12 | Goods availing the benefit of the notification No. 32/1997-Customs, dated the 1st April,1997 |
13 | Goods for which claim of duty credit is not filed in a shipping bill or bill of export in the customs automated system |
14 | Goods that have been taken into use after manufacture. |
Changes in Rates under Appendix 4R since 01-01-2021
Notification | Applicable Rates under Annexure 4R w.r.t. exports made in different period |
DGFT Notification No. 19/2015-20 dtd 17-08-2021 | Rates under RoDTEP w.e.f. 01-01-2021 |
DGFT Notification No. 04/2015-20 dtd 11-05-2022 | Rates under RoDTEP w.e.f. 01-01-2022 |
DGFT Notification No. 12/2015-20 dtd 01-06-2022 | Rates under RoDTEP w.e.f. 01-05-2022 |
DGFT Notification No. 47/2015-2020 dtd 07-12-2022 | Rate under RoDTEP w.e.f. 15-12-2022
Additional export sectors /items in Chapter 28,29,30 and 73 added to Annexure 4R under RoDTEP for exports made from 15-12-2022 and shall be applicable till 30-09-2023 |
DGFT Notification No. 53/2015-2020 dtd 09-01-2023 | Rate under RoDTEP w.e.f. 16-01-2023 to 30-09-2023 |
Points to be taken care by exporter:
Unit filing Shipping bill or Bill of export shall ensure the following:
- At the time of filing of Shipping bill / Bill of Export, it shall be ensured by the Unit that Shipping bill / Bill of Export eligible for RoDTEP Benefits are filed with necessary declarations for claiming RoDTEP. Goods for which claim of duty credit is not filed in Shipping bill or bill of export in the customs automated system would become ineligible for RoDTEP Scheme duty credits.
- RoDTEP claim shall not be filled for Shipping bill/ bill of export against exports made as Free supply i.e. no export proceeds realisation is expected as per Contract. The same shall be ensured to avoid any penal interest in future.
- It shall be ensured that Scroll is generated against each Shipping bills and bill of export filed with RoDTEP claim in ICEGATE. In Case where Scroll is not generated against a claim, the same is to be taken up with Customs on urgent basis to ensure that all the eligible RoDTEP duty credit amount are sanctioned and available as scroll in ICEGATE.
- It shall be ensured that sanctioned duty credit amount under RoDTEP as Scroll in ICEGATE is in line with rates mentioned in Appendix 4R under para 4.59 of FTP 2015-20 as applicable at the time of export.
- Data and documentary evidence such as Bank Realisation Certificates (BRC) from bank against every Shipping bill / bill of export filed for RoDTEP claim shall be duly maintained by Unit filing Shipping bill or bill of export.
While imports, at the time of filing of Bill of Entry, Units to ensure that RoDTEP Scrips available with company are utilised for payment of Basic Customs Duty (BCD) payable on imports. Only after exhausting the available RoDTEP Scrips, BCD amount on import to be paid in cash.
