What is RoDTEP Scheme & The Need for RoDTEP Scheme
A RoDTEP Scheme, which stands for Remission of Duties & Taxes on Export Products, became effective in January 2021, replacing the MEIS Scheme.
And,
Since then, it serves to ensure reimbursement of the embedded taxes & duties that were previously non-recoverable. Therefore, encouraging the exporters to boost the export volume, unlike before!
Features of RoDTEP Scheme: Take Heed!
Well,
This scheme, being launched with the pursuit of retaining WTO compliance, incorporates certain significant features. Would you like to have a quick glance at it?
1. All refundable duties & taxes that used to fall under the MEIS and RoSCTL schemes now come under the purview of the scheme!
2. On the same, there exist an automated credit system where transferrable electronic scrips lay issued, and the credits are monitored & regulated via an electronic ledger.
3. Perhaps, the introduction of a digital platform for RoDTEP enabled a much faster process of verification. Precisely, with an IT-based risk management technique!
4. You do not have to worry about the amount of your export turnover. Yes! It straightaway means there is no threshold or benchmark applicable to this scheme.
5. Above all, the RoDTEP is meant for multiple sectors, thus establishing uniformity across all areas of business endeavor. In fact, this shall also include the textile sector.
Note the Eligibility Criteria to acquire the benefits of the RoDTEP Scheme
Undoubtedly, anyone & everyone cannot enjoy the benefits of the RoDTEP scheme, but only those who can meet up with the laid conditions & criteria.
Do you want to know what those eligibility criteria are?
1. Although all business sectors can avail of RoDTEP, the labor-intensive sectors that previously enjoyed the perks of the MEIS scheme are likely to get the first priority.
2. Herein, both manufacturer exporters & traders are eligible to enjoy the economic aid.
3. No re-exported products stand eligible for the RoDTEP. In other words, it is eligible only when the products lay made in India.
4. No matter whether the goods lay exported through an e-commerce platform or via courier, RoDTEP applies to all!
How to claim & enjoy the benefits of the RoDTEP Scheme?
First and foremost, let me tell you that the ICEGATE Portal must be your call! It is the Indian Customs Electronic Gateway to take you through the process. How? See below!
1. The primary step as an exporter would be to make a declaration of your claim of RoDTEP in the shipping bills.
2. The second task is to file the claim at the Export General Manifest, i.e., EGM. When that stands complete, your claims would lay processed by Customs!
3. What appears next is a scroll. This scroll contains the details of all your shipping bills alongside the admissible amount.
4. Here, you have to log in to the ICEGATE portal and create a credit ledger account for RoDTEP.
5. Now, you can generate the scrips from your user account at the ICEGATE Portal by selecting the relevant bills.
That’s all! Once this entire process is complete, the credit will arrive & reflect on your screen.
And,
Your credits shall be available for utilization!
What was the need for the introduction of the RoDTEP Scheme?
For all this while, you must be wondering – what was the need for such a scheme? Of course, every government aid emerges with a reason! It is no different here!
When the U.S. Government challenged our Export Subsidy Scheme in the WTO meeting, charging it to be harmful to American workers and violating the trading norms of WTO, the RoDTEP took birth. The main purpose was certainly to stay in compliance with the WTO norms.
By this time, many Indian export promotion schemes got recommended to be withdrawn by the WTO panel. Such as –
1. The Merchandise Export from India Scheme,
2. Special Economic Zones Scheme,
3. Export Promotion Capital Goods Scheme,
4. Duty-free Import for Exporters Scheme,
5. Export Oriented Units Scheme, and so forth!
Hence, The RoDTEP came as the most feasible alternative. It is to take care of the needs of Indian exporters & simultaneously stay non-rebukeable in front of the global markets & institutions!
It is to act as an impoverishment of the previous export subsidy programs in India!
Conclusion:
Hey,
Are you still reading with me?
Then, it’s time to wrap up! I hope the article served your purpose.
If not, you can feel free to contact us with your doubts & queries.
Till then,
Stay tuned!