RoDTEP Scheme- Key Facts

On December 31, 2020, the Government of India notified that the benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme will be implemented for the exports of all the goods from January 1, 2021.

RoDTEP Scheme- Key Facts

• Under the RoDTEP scheme, the local, state, and Central taxes will be refunded to the exporters.
• The refund under the RoDTEP scheme will be credited in a ledger account of exporters with Customs. This refund can be used to pay Basic Customs duty on imported goods.
• This credited refund can also be transferred to other importers.
• An exporter willing to avail the benefits under the RoDTEP scheme will have to declare his willingness for each export item in the bill of export or shipping bill.
• As of now, the rates under the RoDTEP have not been notified and are expected shortly.
• The RoDTEP will be allowed as per the terms and conditions as well as exclusions.

Background

The government appointed a 3 member committee under the leadership of former Home and Commerce Secretary G.K. Pillai in July 2020 to work out the modalities for calculating taxes and duties on exported products at the Central, State, and local level, including embedded taxes. Since RoDTEP is based on the actual input taxes, the calculation process is taking the time. As RoDTEP rates have not been notified yet, exporters are in confusion at present.