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:
- 外国貿易政策（FTP）第2.46項の対象となる輸入貨物の輸出。FTP第2.46項は、輸入した貨物をそのまま、あるいは実質的に同じ形態で再輸出することを規定しています。
- 積み替えによる輸出。すなわち、第三国を原産地とし、インドを経由して積み替えられる輸出です。積み替えとは一般に、貨物を中間目的地まで輸送し、その後別の目的地へ輸送することを指します。これは通常、コンテナの変更や、小さな貨物を1つのコンテナにまとめる際などに発生します。
- 最低輸出価格または輸出関税の対象となる輸出製品。
- ITC（HS）輸出政策のスケジュール2に基づき輸出が制限されている製品（馬、雄牛、雌牛など）。制限品目の輸出は、必要な承認を得ることを条件に許可されます。
- ITC（HS）輸出政策のスケジュール2に基づき輸出が禁止されている製品（猛禽類、動物の死骸や半身など）。禁止品目の輸出は許可されません。
- みなし輸出（100%輸出志向型企業（EOU）への輸出など）。
- 国内関税地域（DTA）ユニットが製造した製品の経済特区（SEZ）/FTWZユニットへの供給。
- EHTPおよびBTAで製造された製品。
- 1962年関税法第65条に基づき、保税倉庫内で一部または全部が製造された製品。
- 関連する外国貿易政策の関税免除スキームに基づき発行された事前承認、免税輸入承認、または特別事前承認の義務に従って製造および輸出された製品。
- 100%輸出志向型企業（EOU）としてライセンスを保有するユニットによって製造または輸出された製品。
- 自由貿易地域、輸出加工区、または経済特区（SEZ）に所在するユニットによって製造または輸出された製品。
- 1997年4月1日付関税通知第32/1997号の恩恵を受けて製造または輸出された製品。
- IECGATE EDIで電子文書が生成されていない輸出、または非EDI港からの輸出。
- 製造後に使用された貨物。
However, above mentioned categories may be amended to include or exclude on a later date.
7. Important points under RoDTEP
- 本スキームに基づき付与されるスクリプトは、1975年関税関税法第1スケジュールに基づき課される基本関税の支払いにのみ使用できます。
- 監査および検証の目的のため、輸出者は本スキームに基づく請求を裏付けるために必要なすべての記録を保管しなければなりません。
- ITベースのリスク管理システム（RMS）を用いた監査メカニズムが、中央間接税・関税委員会（CBIC）によって導入されます。
- 歳入省は、サンプリングに基づいて輸出者の記録を物理的に検証します。
- サンプル検証の対象となる案件は、リスクおよびその他の関連パラメータに基づき、RMSを通じて選定されます。
- 広範なモニタリングのため、アウトプット・アウトカム・フレームワークが維持され、定期的に監視されます。
8. Rates under RoDTEP Scheme
RoDTEPスキームに基づく還付率は、2021年8月17日付通知第19/2015-20号で通知された付録4 Rにも規定されています。
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