Remission of Duties and Taxes on Exported Products Scheme implemented from 1 January

 

With an aim to boost exports, Government of India has extended the benefit of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to all export goods with effect 1 January 2021.

The scheme would provide refund of central, state and local duties/taxes to exporters that were so far not being rebated/refunded and were therefore, placing exports at a disadvantage. The refund would be credited in the exporter’s ledger account with customs and can be used to pay basic customs duty on imported goods. Such credits can also be transferred to other importers.

The RoDTEP rates would be notified shortly and shall be applicable with effect from 1 January 2021 to all eligible exports of goods (subject to specified conditions and exclusions).

The government has also issued an advisory providing step by step guide for users to create a RoDTEP credit ledger account, generate scrips and transfer the scrips to any other user.

Key points for consideration 

1.       To avail benefits under the Scheme, user must login at the ICEGATE website and create RoDTEP credit ledger account. This can be done by IECs holder who have registered on ICEGATE with a Digital Signature Certificate (DSC).

2.       Exporters shall be required to furnish a declaration in the shipping bill to avail the benefit of RoDTEP.

Further, effective 1 January 2021, it shall be mandatory for the exporters to indicate in their shipping bill, whether or not they intend to claim RoDTEP on the export items.