Remission of Duties and Taxes on Exported Products (RoDTEP) – Updated as on November 2022
Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is a Department of Commerce (DoC) scheme which has been implemented for exports w.e.f. o1st January, 2021 for most of the chapters. The scheme rebates various Central, State and local duties/ taxes/levies which are not refunded under other duty remission schemes. This is a measure towards zero-rating of exports.
RoDTEP is being implemented by Department of Revenue (DoR) with issuance of remission amount in the form of transferable duty credit electronic scrip. This is maintained in an electronic ledger in the Customs system. Section 51B was introduced in the Customs Act, 1962 in Finance Act, 2020 to provide for an electronic duty credit ledger. A monitoring and audit mechanism, with risk management system has also been put in place by CBIC.
The RoDTEP scheme has been notified by DoC on 17thAugust, 2021 videNotificationNo.19/2015-2020 dated 17.08.2021 along with Annexure 4R containing RoDTEP rates and caps. RoDTEP is a budgeted scheme whose expenditure is booked under Grant No. 35. Pr. CCA is being periodically informed about the total No. & amount of scrips issued under each scheme.
Notification under section 51B of the Customs Act, 1962 has been issued by DoR regarding guidelines on RoDTEP scheme (Notification No. 76/2021 dated 23.09.2021 as amended vide Notification No. 75/2022 dated 14.09.2022). It provides for the manner of issue of duty credit under the RoDTEP scheme for exports made w.e.f. o1st January, 2021 and the conditions and restrictions governing the issuance of duty credit. CBIC has also issued the Electronic Duty Credit Ledger Regulations, 2021 (Notification No. 75/2021 dated 23.09.2021 as amended vide Notification No. 79/2022 dated 15.09.2022) regarding Regulations for use, transfer, maintenance etc. of Electronic Duty Credit Ledger.
Circular No. 23/2021-Customs dated 30.09.2021 on RoDTEP scheme has been issued by CBIC which elaborates further details on scheme implementation. Systems Directorate has also issued Systems Advisory No. 22/2021 dated 30.09.2021 on Implementation of RoDTEP scheme in System.
Duty credit allowed under the RoDTEP scheme is subject to realization of sale proceeds within the period allowed by RBI. The Regulations, read with said Notifications, also provide for the situations and manner of suspension or cancellation of duty credit or e-scrip, or recovery when duty credit allowed was in excess or where export proceeds are not realised.
Scheme guidelines for RODTEP can be seen from : Click HERE
RODTEP rates can be seen from https://www.dgft.gov.in/CP/?opt=RoDTEP