Directrices para el esquema de Remisión de Derechos e Impuestos sobre Productos Exportados (RoDTEP)

With effect from 1st January, 2021, new scheme of Remission of Duties and Taxes on Exported Products (“RoDTEP”) was introduced under Foreign Trade Policy (“FTP”) replacing the earlier benefit of MEIS (Merchandise Export from India Scheme) and SEIS (Service export from India Scheme).

RoDTEP scheme was introduced to provide refunds to exporters of all duties and taxes incurred with respect to exported goods such as GST, Custom Duty, Mandi taxes etc. Refunds were proposed to be provided in form scripts.

RoDTEP was made effective from 1st January, 2021, i.e., the exporter who intended to claim the benefit of the RoDTEP Scheme could make the necessary declaration in Shipping Bills with effect from 01.01.2021. However, detailed guidelines and rates of benefit were not prescribed. 

Objective of Introduction, Features, Benefits and procedure of RoDTEP scheme.

Vide Notification No. 19/2015-2020 dated 17th August, 2021, Ministry of Commerce & Industry provided detailed guidelines of RoDTEP scheme and made necessary modifications in Foreign Trade Policy 2015-2020 with immediate effect.

Detailed guidelines of RoDTEP scheme is discussed below:

1. Objective of RoDTEP Scheme

Objective of RoDTEP scheme is to provide refund of following taxes, which are currently unrefunded:

• Duties/Taxes/levies at central, state or local level on exported products. It also includes prior stage cumulative indirect taxes on goods or services used in production of exported goods; and
• Indirect taxes/levies /duties with respect to distribution of exported products.

2. Operating principles of RoDTEP Scheme

• No rebate under such scheme shall be granted with respect to duties and taxes which are already exempted or remitted or credited.
• Ceiling rates under the RoDTEP scheme shall be determined by a committee in the department of Revenue/Drawback Division with representatives from the Department of Commerce, DGFT, lines ministries and experts. 
• Rates shall be determined as per sectors prioritized by the Department of Commerce and Department of Revenue.
• Overall budget/outlay of RoDTEP scheme shall be determined by the Department of Commerce in consultation with the Department of Revenue.
• Scheme shall operate in a budgetary framework for each financial year and necessary modifications will be made to the scheme as and when required. Remissions under the RoDTEP scheme during a year shall be made within the approved budget of the scheme.
• Department of Commerce shall decide following points related to such scheme in consultation with Department of Revenue:
  • Sequence of introduction of scheme across sectors;
  • Prioritization of sectors
  • Degree of benefits to be given to different products

3. Manner of granting benefits under RoDTEP Scheme

• Rebate under the scheme shall be granted to eligible exporters in either of the following 2 methods:
  • Rebate at a notified rate as a % of FOB Value of the exported product. However, rebate shall be subject to value cap per unit wherever required. % of rebate is notified as per 8 Digit HSN Code.
  • For certain items, Rebate will be granted a fixed quantum notified per unit.

• Rate of Rebate under RoDTEP scheme shall be reviewed on an annual basis and any change in rate will be notified well in advance before commencement of the Financial year.
• All safeguards applicable under Duty Drawback Scheme, IGST and other GST Refunds related to exports will remain applicable under RoDTEP Scheme as well.
• In case of non-realisation of foreign exchange and suspension/withholding of RoDTEP scheme due to fraud and misuse, necessary provisions will be built by CBIC to recover rebate amount along with imposition of penalty.

4. Rebate under RoDTEP shall be granted subject to receipt of sales proceeds

• Rebate shall be granted subject to receipt of sales proceeds within the time allowed under Foreign Exchange Management Act, 1999. As per Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, full value of export of goods should be released and repatriated to India within 9 months from the date of export.
• If sales proceeds are not received within the time limit given under FEMA then the rebate shall be deemed to never have been allowed.
• At the time of granting rebate, it shall not depend upon realisation of export proceeds. However, adequate safeguards will be taken to prevent any misuse of rebate amount on account of non-realisation  and for other systematic improvement.

5. Rebates shall be granted in the form of transferable duty credit

• Rebates shall be granted in the form of transferable duty credit/electronic Scripts (e-scripts) through end-to-end digitization process. 
• Scripts shall be maintained in an Electronic Credit Ledger by the Central Board of Indirect Taxes and Customs (“CBIC”). 
• With a view to enable end to end digitisation on an IT enabled platform, following issues shall be notified by CBIC:
  • Necessary rules and procedure regarding grant of RoDTEP claim under the scheme;
  • Implementation issues including manner of application;
  • Time period for application; 
  • Other matters such as export realisation, export documentation, sampling procedure, record keeping etc.

• Scheme shall take effect for exports made from 1st January, 2021 subject to necessary adoption of scheme in Shipping bills. However, for certain category of exports, implementation date will be decided later on.

6. Items/Categories/Supplies not eligible for benefits under RoDTEP Scheme:

Department of commerce has specified following nature of transactions or class of items for which no benefit shall be granted under RoDTEP Scheme:

• Exportación de bienes importados cubiertos por el párrafo 2.46 de la Política de Comercio Exterior ("FTP"). El párrafo 2.46 de la FTP contempla la importación de bienes que, a su vez, se exportan posteriormente ya sea en la misma forma o en una forma sustancialmente igual.
• Exportación mediante transbordo, es decir, exportaciones que se originan en un tercer país pero que se transbordan a través de la India. El significado general de transbordo es llevar el envío de mercancías a un destino intermedio y luego a otro destino. Esto ocurre generalmente en caso de cambio de contenedores, cuando los envíos pequeños pueden combinarse en un solo contenedor, etc.
• Productos de exportación que están sujetos a un precio mínimo de exportación o a derechos de exportación.
• Productos cuya exportación está restringida bajo el Anexo 2 de la Política de Exportación de ITC (HS), tales como caballos, toros, vacas y muchos otros. La exportación de artículos restringidos está permitida sujeta a las aprobaciones necesarias.
• Productos cuya exportación está prohibida bajo el Anexo 2 de la Política de Exportación de ITC (HS), tales como aves: aves de presa, canales y medias canales, y muchos otros. La exportación de artículos prohibidos no está permitida.
• Exportación considerada, es decir, exportación a una EOU (Unidad Orientada a la Exportación) al 100%, etc.
• Suministros de productos fabricados por unidades DTA a zonas económicas especiales (SEZ) / unidades FTWZ.
• Productos fabricados en EHTP y BTA.
• Productos fabricados parcial o totalmente en un almacén bajo la sección 65 de la Ley de Aduanas de 1962.
• Productos fabricados y exportados en cumplimiento de una obligación contra una autorización anticipada, una autorización de importación libre de derechos o una autorización anticipada especial emitida bajo un esquema de exención de derechos de la Política de Comercio Exterior pertinente.
• Productos fabricados o exportados por unidades que tienen licencia como EOU al 100%.
• Productos fabricados o exportados por cualquier unidad situada en zonas de libre comercio, zonas de procesamiento de exportaciones o SEZ.
• Productos fabricados o exportados aprovechando el beneficio de la Notificación N/No. 32/1997 de Aduanas, de fecha 1 de abril de 1997.
• Exportaciones para las cuales no se ha generado documentación electrónica en IECGATE EDI / Exportación desde un puerto no EDI.
• Bienes que han sido utilizados después de su fabricación.

However, above mentioned categories may be amended to include or exclude on a later date.

7. Important points under RoDTEP

• Los créditos otorgados bajo este esquema se utilizarán únicamente para el pago del Derecho de Aduana Básico exigible bajo el 1er Anexo de la Ley de Tarifas Aduaneras de 1975.
• A efectos de auditoría y verificación, el exportador deberá conservar todos los registros necesarios para sustentar su reclamación realizada bajo el esquema.
• El CBIC implementará un mecanismo de auditoría con un Sistema de Gestión de Riesgos (RMS) basado en TI.
• El Departamento de Ingresos verificará físicamente los registros de los exportadores mediante muestreo.
• Los casos para la verificación por muestreo se seleccionarán a través del RMS basándose en el riesgo y otros parámetros relevantes.
• Para un seguimiento a nivel general, se mantendrá y supervisará un marco de resultados a intervalos regulares.

8. Rates under RoDTEP Scheme

Las tasas de reembolso bajo el esquema RoDTEP también se notifican en el APÉNDICE 4 R - Notificado el 17.08.2021 bajo la Notificación N.º 19/2015-20.