Remission of Duties and Taxes on Export Products (RODTEP). The objective of this program is to eliminate the cost of export goods by providing refunds for all central, state and local duties, taxes and hidden fees that are not refunded in the current schemes.
The current RODTEP rates run from 0.3% to 4.3%.
In January 2021, the Government of India launched the program for RODTEP (Remission of Duties and Taxes on export products) to replace the MEIS export subsidy program to comply with the WTO (World Trade Organization).
2. Features
Refunds are issued in the form of exchangeable electronic funds.
These duty credits are kept and tracked in an electronic ledger.
Through the introduction of a digital platform, the clearance can be done faster.
Verification of a customer record is done using an IT-based risk management system to ensure speedy and accurate transaction processing.
Under RODTEP, all sectors, including the seed sector, are covered to ensure quality across the board.
In addition, a special committee will be established to determine the order in which the project will be included in the various sections
3. Claim Benefits Under RODTEP
ICEGATE (Indian Customs Electronic Gateway) contains information about the receipts received by the customer.
At the port, the shipper has to show the details of the RODTEP benefit claim for an export item in the bill of lading and create a bill of lading for the same.
After the Export General Manifest (EGM) is enrolled, the claim is handled by customs.
After Processing the claim, a list of all transport bills of approved amount will be created and available in user account in the ICEGATE portal.
Client must login to ICEGATE portal and make a RODTEP credit account.
After creating a RODTEP credit account, merchants can access their accounts and issue certificates by selecting appropriate bills of lading.
Once the payments are made, the refund will be received and will be shown in the account of customer’s office, and will be available for payment of applicable fees and time of import, or for transfer to another import.
4. Eligibility Criteria
All the sectors, including textile sector, can benefit from RODTEP program.
All the exporters who are in the manufacturing of goods in India.
Areas of activity that benefit the MEIS plan will be prioritized.
Producers and Retailers (sellers) are eligible to take advantage of this scheme.
There is no particular change limit for a RODTEP claim.
Re-export products are not eligible under this scheme.
To profit the benefits of the scheme or plot, the traded items must be from India, or items must have nation of start in India.
Special economic zone units and export promotion units are also eligible to get the benefits of this scheme.
In cases, where the merchandise has been dispatched out through a courier from e-commerce stages, the RODTEP plot will moreover apply to them.
All the exporters of manufacturing goods from India are eligible to apply for this scheme.
6. Conclusion
RODTEP was started to replace incentives beneath the MEIS, which were conflicting with WTO (World Trade Organization) provisions. The scheme aims to provide incentives to small exporters through customs documents and WTO compliance for Indian exports in the worldwide markets.
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