RoDTEP Scheme – Questions Unsawered

Recently you would have heard about the remission of duties and Taxes on export product scheme i.e. RoDTEP Scheme of Government of India with from first of January 2021 to replace the existing MEIS schemes etc

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Now it is important for you to note that this remission of duties and Taxes scheme allows reimbursement of unabsorbed duties taxes and levies to the exporters suffered during manufacture and distribution of exported products and are presently not rebated or refunded under any other scheme

Such unabated and un rebated duties include value added tax, central excise duties on fuels Mandi Taxes, electricity duty and other Cesses and surcharges.

The refund under this scheme is to be granted in the form of Duty credit scrips based upon rate of rewards prescribed for each class of goods and such scripts can be utilised to pay the basic custom duties on import of goods or can be traded also in the open market

Recent Government’s Advisory Requires Disclosure of Opting of RoDTEP Scheme on Shipping Bills

The Government in the advisory said that the goods covered under such Shipping Bills shall be examined by the Customs Officials, on the pattern of MEIS, so that in case exports from SEZ Units are covered under the RoDTEP Scheme, such exports may be taken into account under the RoDTEP Scheme.

Therefore, the advisory directed the SEZ Units under MEPZ SEZ, who would like to file Shipping Bills under the RODTEP Scheme, may do so as per the above Advisory issued by the Department of Commerce.

But it is unfortunately a reality that do the scheme was supposed to be implemented on 1st of January 2021, the press release issued in this respect mentions the government shortly provide the operational details with respect to the scheme So as of now there are so many questions which are still open and needs a complete understanding.

Questions Yet to be Answered

The First question that is open is which are the goods which are eligible for award under the scheme

Second, is what is the rate of rewards along with the monetary limits for such rewards along with the conditions restrictions and procedure for the scheme

The third is how the rates will be calculated whether it will be a fixed percentage or in some any other manner and which taxes duties and levies form the part of such computation

Now realise that the situation the exporters are in is a big dichotomy. It appears that somebody who has opted for the scheme will not be allowed the benefit under any other schemes like advance authorisation, export oriented units, job works etc hence how can the exporters decide unless and until they are given the clear parameters of computation and above questions are duly sorted out

As a result of which the exporters in the intervening period are in a doubtful situation as to what should be there stand in terms of disclosure regarding to opting of the scheme in the shipping bill.

Such a sort of a Catch 22 situation is not good for the overall Indian export industry and the government needs to react on the same at the earliest and clarify the position

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