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The RoDTEP scheme (Remission of Duties and Taxes on Exported Products) was introduced to boost Indian exports by providing refunds on certain taxes and duties that were previously not refunded. The RoDTEP scheme full form stands for Remission of Duties and Taxes on Exported Products, which aims to enhance export competitiveness by offering an incentive to remission — meaning exporters can recover embedded taxes.
Bright Advis assists exporters in understanding and availing the benefits of the RoDTEP scheme, ensuring maximum tax refunds and compliance.

In this comprehensive guide, we will cover what is RoDTEP scheme, its key features, eligibility, application process, and more.

What is RoDTEP Scheme?

The RoDTEP scheme, launched by the Government of India as part of its foreign trade policy, aims to refund taxes, duties, and levies incurred during the manufacturing and export process that were previously non-refundable. The scheme replaced the Merchandise Exports from India Scheme (MEIS) and complies with World Trade Organization (WTO) guidelines. This MEIS replacement is designed to boost export promotion and enhance export competitiveness while avoiding classification as an export subsidy.

If you’re wondering what is RoDTEP scheme, it essentially provides exporters with electronic duty credit scrips (e-scrips) that can be used to pay basic customs duty or sold in the open market. These transferable duty credits offer flexibility to exporters.
Bright Advis helps exporters identify eligible products, calculate applicable remission rates, and submit claims efficiently.

Key Features of the RoDTEP Scheme

• – Refund of Non-Credit Taxes: Includes VAT on fuel, mandi tax, electricity duties, and other embedded taxes.
• – Electronic Scrips: Automated issuance and transfer of RoDTEP scrips through an electronic ledger.
• – WTO Compliance: Structured to adhere to global trade norms, avoiding classification as an export subsidy.
• – Sector-Wide Coverage: Applicable to all export sectors, including agriculture, textiles, chemicals, etc.
• – Simplified Filing Process: Digital platform for submission and tracking of refund claims.

Bright Advis ensures that exporters comply with all scheme guidelines, including those set by the DGFT (Directorate General of Foreign Trade), to avoid rejections and delays in claim processing.

Eligibility Criteria for RoDTEP Scheme

• – Exporters of Goods: Both manufacturers and merchant exporters can apply.
• – Shipping Bills: Must be filed electronically through the ICEGATE portal.
• – Deemed Exports: Exports to Special Economic Zones (SEZ) units and foreign entities are also eligible.
• – E-invoicing Compliance: Only those invoices filed through the EDI system are considered.
• – Ineligible Products: Export products availing other subsidies like Duty Drawback or SEIS are excluded.
• – Export-Oriented Units: EOUs are eligible for RoDTEP benefits on their exports.

Bright Advis assists exporters in determining their eligibility and preparing the necessary documentation to avail RoDTEP benefits seamlessly.

Benefits of the RoDTEP Scheme

• – Reduced Export Costs: Refund of previously non-creditable taxes reduces overall export cost.
• – Global Competitiveness: Lower costs enhance price competitiveness in international markets.
• – Boost to Small Exporters: MSMEs can claim refunds even on small export consignments.
• – Automated Processing: Transparent and efficient claim processing through the ICEGATE portal.
• – Tax Refunds: Exporters can recover embedded taxes and duties previously absorbed in costs.

At Bright Advis, we help you maximize your refunds by accurately calculating RoDTEP rates and filing claims on time.

RoDTEP Rates and Calculation

The RoDTEP rates vary based on the product category and HS code. The refund is calculated as a percentage of the Free on Board (FOB) value of the exported goods. The RoDTEP scheme rates list is available in the official notification, which serves as a drawback schedule for exporters.

• – Textiles: 3-4% of FOB value
• – Leather Goods: 2.5-3% of FOB value
• – Agricultural Products: 1-2% of FOB value

For specific rates, refer to the RoDTEP rate schedule published under Appendix 4R.
Bright Advis helps you identify applicable remission rates and ensures accurate claim calculations based on the RoDTEP scheme product list.

Application Process for RoDTEP

1. Step 1: Register on the ICEGATE Portal — Obtain a user ID and password to access the RoDTEP module.
2. Step 2: File Shipping Bill — Declare the RoDTEP claim in the shipping bill and upload the necessary export invoices.
3. Step 3: Submit Supporting Documents — Provide documents such as e-invoice, export contract, and bank realisation certificate.
4. Step 4: Processing of Claims — Customs verifies the claim and calculates the RoDTEP rates based on FOB value.
5. Step 5: Issuance of RoDTEP Scrips — Electronic scrips are issued and credited to the exporter’s ledger.

Bright Advis ensures error-free application submission to expedite the refund process and helps you understand how to claim RoDTEP benefits effectively.

Issuance and Utilisation of RoDTEP Scrips

• – Issuance: Electronic scrips are issued through the ICEGATE portal and credited to the exporter’s electronic ledger.
• – Utilisation: RoDTEP scrips can be used to pay basic customs duty or sold to other businesses.
• – Transferability: Scrips are transferable, allowing exporters to monetise their refunds.

Our experts at Bright Advis assist in managing and utilising RoDTEP scrips effectively, ensuring optimal use of your RoDTEP license for duty remission.

Annual RoDTEP Return (ARR)

Exporters must file an Annual RoDTEP Return (ARR) to validate their claims and provide transaction data. The ARR must be filed within the specified deadline to avoid penalties.

Bright Advis offers complete ARR filing services, ensuring compliance and accurate reporting as per DGFT guidelines.

Common Challenges and Solutions

• – Claim Rejection: Ensure accurate declaration in shipping bills and proper customs clearance documentation.
• – Delayed Refunds: Maintain proper documentation for verification and follow up regularly.
• – Ineligible Exports: Verify product eligibility before filing to avoid issues with export subsidy regulations.

Our team at Bright Advis addresses these challenges proactively, preventing rejections and ensuring timely refunds.

Frequently Asked Questions (FAQs)

Q1. What is RoDTEP?
RoDTEP stands for Remission of Duties and Taxes on Exported Products, a scheme that refunds taxes and duties previously not refunded. The RoDTEP meaning is essentially an incentive to remission, boosting export competitiveness.

Q2. How are RoDTEP rates calculated?
RoDTEP rates are determined as a percentage of the FOB value of exported goods, as specified in the Appendix 4R. The RoDTEP scheme notification provides detailed information on rate calculation.

Q3. Are all exporters eligible for RoDTEP?
Most exporters are eligible, but those availing other export incentives may be excluded. IEC holders need to check their eligibility based on the export sectors they operate in.

Q4. How can I check the status of my RoDTEP claim?
Login to the ICEGATE portal and access the RoDTEP module to track the claim status. The ICEGATE RoDTEP section provides real-time updates on your claims.

Q5. What happens if the claim is rejected?
Rejected claims can be rectified and refiled within the stipulated period. It’s important to understand the remission of duty meaning and ensure all criteria are met.

Start Your RoDTEP Application with Bright Advis Today!

Bright Advis provides comprehensive services for the RoDTEP scheme, from application filing to scrip utilisation. Our experts ensure that your claims are accurately calculated and processed without delays, helping you navigate the complexities of foreign trade policy and export procedures.

• – Fast and Accurate Filing
• – Complete Document Verification
• – End-to-End Claim Management

Discover export benefits with Bright Advis and maximise your RoDTEP claims today. Our team is well-versed with the DGFT guidelines, GST refund processes, and can help you leverage the RoDTEP scheme for enhanced export competitiveness.