Author: Deepak Madan

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RoDTEP means Remission of Duties and Taxes on Exported Products. The scheme was started by the Government of India in September 2019 to boost India's exports by refunding the taxes and duties that are currently not being refunded to exporters.

 

The scheme was announced by the Ministry of Commerce and Industry to replace the Merchandise Export Incentive Scheme (MEIS) and the Rebate of State Levies (ROSL) scheme, both of which were found to be non-compliant with World Trade Organization regulations. The RoDTEP scheme is thought to be WTO-compliant and will replace MEIS and ROSL from 01, January 2021.

 

In the RoDTEP scheme, exporters will be eligible for a refund of multiple taxes and duties which are levied by the central, state, and local governments. These duties were not currently being refunded. This includes taxes like state and central excise duties, VAT, central sales tax, electricity duties, and fuel for logistics, among others.

 

The refund rate under the RoDTEP scheme will vary based on the sector and the specific product being exported. The rates will be determined by the Department of Commerce, with input from other relevant government departments. The rates are expected to be set at a level that provides an adequate incentive to exporters while ensuring that the scheme is financially sustainable.

 

The RoDTEP scheme is expected to benefit a wide range of industries, including textiles, leather, handicrafts, agriculture, and marine products, among others. The scheme will provide much-needed relief to exporters who have been struggling with a variety of challenges, including a strong rupee, rising costs of raw materials, and intense competition from other countries.

 

The process to sell scrips:

RoDTEP scrips are certificates that provide a refund of duties and taxes paid on exported goods. These scrips can be sold in the open market by exporters who receive them as a benefit under the RoDTEP scheme. Here are some guidelines and steps to follow for selling RoDTEP scrips:

 

• Eligibility: To be eligible to sell RoDTEP scrips, you must be an exporter who has been issued RoDTEP scrips by the government.

 

• Register with the DGFT: To sell RoDTEP scrips, you must be registered with the DGFT and have an Import Export Licence.

 

• Approach a recognized agency: Only recognized agencies can purchase RoDTEP scrips. You can approach a recognized agency to sell your RoDTEP scrips. 

 

• Submit necessary documents: You will need to submit your RoDTEP scrips, along with other necessary documents such as invoices, shipping bills, and export declaration forms to the recognized agency.

 

• Negotiate the price: The price of RoDTEP scrips is determined by market demand and supply. You can negotiate the price with the recognized agency based on the prevailing market conditions or you may contact the team at ibrlive.com for competitive pricing.

 

• Receive payment: Once the negotiations are finalized, the recognized agency will pay you for the RoDTEP scrips.

 

• Utilization of funds: The funds received from the RoDTEP scrip sale can be utilized for any business purposes, including payment of duties and taxes, payment to suppliers, and investment in new projects.