The RoDTEP export incentive scheme India, or Remission of Duties and Taxes on Exported Products, is one of the most significant initiatives introduced by the Government of India to support exporters and boost international trade competitiveness. Launched in September 2019, this RoDTEP new export scheme was designed to refund taxes and duties that were previously not reimbursed under earlier programs, providing exporters with a fair and transparent refund mechanism. RODTEP Benefits are explained in the blog in detail.
What is the RoDTEP Scheme and Why Was It Introduced?
Before the RoDTEP scheme came into effect, exporters benefited from earlier incentive programs such as the Merchandise Exports from India Scheme (MEIS) and the Rebate of State Levies (ROSL). However, these schemes were found to be non-compliant with World Trade Organization (WTO) guidelines. To ensure full compliance and continued export competitiveness, the MEIS scheme was replaced by RoDTEP on January 1, 2021.
The Ministry of Commerce and Industry, along with the Directorate General of Foreign Trade (DGFT), implemented the RoDTEP DGFT system to streamline the refund process through electronic scrip issuance and seamless credit transfer.
How Does the RoDTEP Export Incentive Scheme Work?
Under the RoDTEP export incentive scheme India, exporters can claim refunds for various taxes and duties that were earlier embedded in the cost of exported goods but not refunded through any other scheme. These include:
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Central and state excise duties on fuel used for transport and production
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VAT and central sales tax on raw materials
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Electricity duties
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Mandi tax, stamp duty, and other local levies
These refunds are issued as RoDTEP scrips, which can be utilized for payment of customs duties or sold in the open market for cash.
The refund rate varies depending on the product category and sector. Rates are determined by the Department of Commerce with inputs from industry bodies and other government departments to ensure that they remain financially sustainable while supporting exporter profitability.
Key Benefits of the RoDTEP Scheme for Exporters
The RoDTEP benefits extend across multiple industries, making it one of the most impactful export policies in recent years. Some of the major advantages include:
- Enhanced global competitiveness through cost reduction on exported goods.
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Compliance with WTO norms, ensuring the continuity of export incentives.
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Automated and transparent refund process through the DGFT portal.
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Eligibility for a wide range of sectors, including textiles, leather, agriculture, handicrafts, marine products, and more.
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Ease of scrip trading, allowing exporters to monetize their incentives quickly.
For many exporters, especially MSMEs, this scheme provides much-needed financial relief amid challenges like volatile currency movements, high input costs, and intense international competition.
Step-by-Step Process to Sell RoDTEP Scrips
Exporters who receive RoDTEP scrips can either use them to pay customs duties or sell them for cash in the open market. Below is a simplified guide to help you sell your scrips efficiently:
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Eligibility Check:
You must be an exporter who has been issued RoDTEP scrips by the DGFT. -
DGFT Registration:
Ensure you are registered with the Directorate General of Foreign Trade (DGFT) and possess a valid Import Export Code (IEC). -
Find a Recognized Buyer:
Only recognized agencies or platforms can purchase these scrips. It’s important to choose a reliable partner for smooth transactions. -
Submit Required Documents:
Provide necessary paperwork, including invoices, shipping bills, and export declarations, along with your RoDTEP scrips. -
Negotiate Pricing:
The market price of RoDTEP scrips depends on supply, demand, and product category. You can contact the expert team at IBRLIVE.com to get competitive rates and quick settlements. -
Receive Payment:
Once the price is agreed upon, the payment is processed, allowing you to reinvest funds back into your business.
Why Choose IBRLIVE for Selling RoDTEP Scrips
At IBRLIVE, we simplify the process of buying and selling RoDTEP scrips with complete transparency and trust. Our team ensures that exporters receive the best market rates and hassle-free documentation support. Whether you’re a first-time exporter or a large-scale manufacturer, we help you unlock the full potential of your RoDTEP export incentive scheme India benefits efficiently.
Conclusion
The RoDTEP export incentive scheme India represents a crucial step toward strengthening India’s position in global trade. By refunding unrebated taxes and duties, the government has empowered exporters to compete globally while maintaining compliance with international norms. For exporters looking to monetize their RoDTEP scrips quickly and securely, partnering with trusted experts like IBRLIVE can make the entire process seamless and profitable.
Top 5 FAQs on the RoDTEP Export Incentive Scheme India
1. What is the RoDTEP export incentive scheme India?
The RoDTEP export incentive scheme India (Remission of Duties and Taxes on Exported Products) is a government initiative that refunds previously unclaimed taxes and duties to exporters. It helps make Indian goods more competitive in global markets by reducing hidden export costs.
2. What is the difference between MEIS and RoDTEP?
The MEIS scheme was replaced by RoDTEP in January 2021 to ensure compliance with WTO norms. Unlike MEIS, which offered fixed export incentives, RoDTEP provides tax refunds based on actual duties and levies paid on exported goods, making it more transparent and WTO-compliant.
3. How can exporters claim RoDTEP benefits through DGFT?
Exporters can claim RoDTEP DGFT refunds by logging into the DGFT portal, filing export shipping bills, and selecting RoDTEP under the reward scheme option. Once approved, the DGFT credits RoDTEP scrips to the exporter’s electronic ledger, which can be used or sold for cash.
4. Can RoDTEP scrips be sold or transferred?
Yes, exporters can sell or transfer RoDTEP scrips in the open market. The process involves finding a recognized buyer or agency, submitting required export documents, and negotiating a fair price. You can contact IBRLIVE to sell RoDTEP scrips quickly at competitive market rates.
5. Which industries benefit most from the RoDTEP scheme?
The RoDTEP new export scheme benefits several sectors, including textiles, leather, agriculture, marine products, and handicrafts. These industries gain from reduced export costs, better refund visibility, and improved global competitiveness.
