RoDTEP Scheme UPSC Notes: All Points Covered for 2021 UPSC Exams

RoDTEP is the abbreviation of Remission of Duties and Taxes on Export Products. Here the term “Remission” means the act of cancelling or reducing the amount of money somebody has to pay. The scheme ensures that exporters receive refunds from taxes and duties paid by them. These were previously unrecoverable. The objective of this scheme is to give a boost to export activities of the country by giving the exporters an incentive in the form of refunds.It is a new scheme announced on 31st December 2020 to replace MEIS (Merchandise Exports from India).

What are RoDTEP Scheme Benefits?

#1. With the help of the RoDTEP scheme, the central, state, and local duties and taxes would be refunded, which were not refunded prior.

#2. The credited refund will be kept in the exporter’s ledger account. The refunded amount is used in paying tax implemented on goods when transported across foreign borders. It can also be transferred to another importer’s account.

#3. Users can use it with end-to-end digitization.

#4. The Indian exports system and domestic industry will be enhanced with the help of the RoDTEP scheme in the international market.

To avail each benefit, the exporter has to justify his intention for every exported item in the bill of export. Then the scheme (RoDTEP) will be allowed under terms and conditions.

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What are RoDTEP Scheme Features?

#1. It is a multi-sector scheme where all sectors are included (even the textile sector). A dedicated committee will decide the extension of benefits.

#2. The refund will be easy to transfer through an electronic ledger account. The credit system will be automatic.

#3. Every tax which was not refunded earlier, like Central Excise duty on fuel, Mandi tax, Vat, etc., will be refunded under this scheme.

#4. Record verification will face no delay and error. An IT management system will take responsibility for fast, safe, and accurate transaction processing.

Full Process of Availing the Benefit

#1. Once the exporter claims the RoDTEP, he can declare it in the shipping bill.

#2. The claim will go through the process after the filing of the Export General Manifest by the customs.

#3. All the shipping bills will be checked to generate the allowed amount after processing the claim. It will be available in the ICEGATE portal’s user account. The exporter can make a RoDTEP credit ledger account by logging in to the portal.

#4. Once the ledger account is created, the exporter can generate a provisional certificate of money by selecting the applicable shipping bills.

#5. After the generation of the certificate, the refund will get credited in the ledger account of the exporter and will be available in the payment of duties or taxes of export goods. The refunded amount can also be used in sending it to another import account then.

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Eligibility Criteria for RoDTEP Scheme

#1. Merchant manufacturers and exporters or traders are eligible.

#2. Re-exported goods are not eligible for RoDTEP.

#3. Goods originating in India are eligible for the scheme.

#4. The scheme will apply to all sectors (also including textile). Labour-intensive sectors are on the top of the priority list of this scheme and are enjoying benefits of 2%, 3%, 5% of the export value under the Merchandise Exports from India scheme.

#5. Goods exported via commercial transactions which are conducted through electronic mode are eligible too.

Extension of Benefits and Reasons of Extension

In 2020, India’s exports fell by 5% in October and in November by 8%! This adversely affected the export system of the country, and by the RoDTEP scheme benefits extension, it can be controlled.

As per the Indian government announcement, the benefits of the RoDTEP scheme extended on 1st January 2021 to all export goods. The rates decided under the scheme can be used by the exporter. Although at the initial stage of the scheme, the sectors were limited due to resource limitation. The action taken by the government will improve the export sector of the country.

Additional Points on RoDTEP Scheme for UPSC

#1. RITC, i.e. the Reduced Income Tax Credit code provided in the shipping bill, will be enough for accessing the benefit of the RoDTEP scheme. No other code or serial number will be required.

#2. Deputy Commissioners of customs are responsible for looking at the problem faced by the exporters under this scheme.

#3. The scheme is a fully World Trade Organisation acquiescent scheme.

Conclusion

In the RoDTEP scheme UPSC notes, you look at what is the RoDTEP scheme, its features, benefits, extension of benefits, and eligibility criteria to avail it. It is an important scheme to maintain healthy competition between exporters of India. Although it is not fully implemented, a massive change will be seen in the Indian export system in the future.

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