Remission of Duties and Taxes on Exported Products (RoDTEP)

To compensate the taxes/duties/ levies, at the central, state and local level, which are not being refunded under any other mechanism, the Government has announced Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to all eligible exports of goods with effect from 1st January, 2021.

Salient Features

• Rebate is claimed as a percentage of the Freight on Board (FOB) value of exports.
• The scheme provides reimbursement of taxes/duties/levies are outside the purview of GST i.e. VAT on fuel used in transportation, Mandi tax, Duty on electricity used during manufacturing.
• Benefit is issued to exporters in the form of transferable duty credit/ electronic scrips, which will be maintained in an electronic ledger.
• The scrip generated shall be valid for 2 years.
• Rate of reward is notified by the government in Appendix 4R

The exporter is required to declare on the electronic shipping bill that the export intends to avail benefit under RoDTEP scheme and an undertaking that it would abide by the provisions of the scheme.

After the export, the exporter is required to register at the ICEGATE platform to avail the benefit under the RoDTEP scheme. The refund would be credited in an exporter’s ledger account with Customs and used to pay Basic Customs duty on imported goods. The credits can also be transferred to other importers.

The duty credit scrip is subject to realisation of sale proceeds within the time period allowed by RBI.