Guidelines for remission of Duties and Taxes on Exported Products ( RoDTEP)

The notification issued by DGFT on long-pending Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for export items effective on 17.08.2021:

Subject

Scheme Guidelines for remission of Duties and Taxes on Exported Products ( RoDTEP).

Applicability Exported products
Brief description

The Ministry of Commerce & Industry has announced guidelines and rates of the long-pending Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for export items.

Though the scheme for exporters which replaced the ongoing Merchandise Exports from India Scheme (MEIS) came into effect on January 1, 2021, the rates had not been finalized yet.

Accordingly, the RoDTEP rates will vary from 0.5-4.3% of export value and will include sectors like marine, agriculture, leather, gems and jewellery, automobile, plastics, electrical, electronics and machinery. However, exporters in sectors like steel, pharmaceutical, chemicals have been kept out of the scheme. Products manufactured or exported at export-oriented units and special economic zones have been excluded from the scheme for the time being.  While most animal products including milk and freshwater fish will get a RodTEP rate of 0.5%, agri items such as tomatoes and onions will get benefits at a 4% rate. Textile items such as saree and shirting fabrics will get the highest benefit at 4.3% of export value.

RoDTEP has created a mechanism to reimburse such central, state and local taxes, which are not being refunded under any other scheme. The refund would be credited to an exporter’s ledger account with the customs, and will be used to pay basic customs duty on imported goods. The credits can also be transferred to other importers. The rebate will have to be claimed as a percentage of the Freight On Board value of exports. A monitoring and audit mechanism, with an information technology-based risk management system has been put a place in to physically verify the records of the exporters.

Completed notification attached