Remission rates and guidelines for export items under the new Remission of Duties and Taxes on Exported Products (RoDTEP) scheme are likely to notified in 10 days, as per a Financial Express report.
During the implementation of the RoDTEP scheme on January 1, 2021, the Ministry of Finance had said that it would “shortly” notify the details of export goods (tariff lines) eligible for the scheme, the applicable RoDTEP rate, value caps (wherever applicable) on such eligible goods/tariff lines, the excluded category of exports, other conditions and restrictions, and the procedural details for grant of RoDTEP duty credit, and utilisation.
However, exporters — majority MSMEs dealing with uncertainty while finalising and negotiating new export orders — have been urging the government since then for immediate notification to factor rates and overall guidelines for executing new orders.
The RoDTEP scheme, which had replaced the Merchandise Exports from India Scheme (MEIS) on January 1, 2021, to improve the global competitiveness of Indian exports, was approved last year for reimbursement of taxes, duties, and levies at the central, state, and local level. These were earlier not refunded but incurred in the process of manufacture and distribution of exported products.
The scheme, however, has budgeted only Rs 13,000 crore for FY22 — way below its initial estimated annual cost of Rs 50,000 crore and only a third of the Rs 39,097 crore approved by the government for exporters in FY20 under MEIS for many sectors. With a budget lower than expected, exporters believe that RoDTEP rates would be less than the MEIS rates. The incentives under MEIS ranged from 2 per cent to 5 per cent of the free-on-board (FOB) value of exports.
To avail the RoDTEP scheme, an exporter has to claim for RoDTEP in the shipping bill by making a declaration. The claim will be processed by the Customs post export general manifest (EGM). Then a scroll with all shipping bills for admissible amount is generated and made available in the user’s account at Indian Customers Electronic Gateway (ICEGATE).