RoDTEP Scheme for Export Refund | Process to secure RoDTEP Scrips

What is the RoDTEP Scheme?

RoDTEP Scheme is a government scheme that focuses on issuing refunds to exporters in India. The refunds under RoDTEP Subsidy Scheme are available if not taxes are not refunded by other schemes but taxes are paid in the process of manufacturing and exporting goods.

The RoDTEP scheme has replaced the earlier MEIS(Merchandise Exports from India Scheme). Under the RoDTEP scheme, the rebate is given in the form of transferable duty credit scrips also known as RoDTEP License.These credit scrips are usable for paying import duties or can also be sold in the market.

Key Benefits of the RoDTEP Scheme for Indian Exporters

#. RoDTEP Scheme refunds hidden taxes and duties such as electricity duty, fuel VAT and Mandi tax which were not refunded before.

#. Indian exports are more price-competitive in global markets.

#. RoDTEP scheme helps in avoiding trade disputes while being WTO Compliant as well.

#. The chances of delays and corruption is very less as the system is automated and transparent.

#. MSMEs in all sectors are also eligible for the RoDTEP Scheme.

#. The refund rates are predictable and help exporters plan accordingly.

#. It offers a smooth transition from the previous scheme of MEIS.

#. Under RoDTEP subsidy scheme, exporters receive reimbursement for previously

non-recoverable duties and taxes, including:

- VAT on fuel used in transportation

- Electricity duties

- Mandi tax

- Stamp duty on export documents

- Embedded GST and other indirect taxes

Eligibility Criteria for the RoDTEP Scheme

All sectors and products eligible: No sectoral restrictions; covers 100% of merchandise exports notified under the scheme.

#. Exporters must have a valid IEC (Import Export Code) during the period of exports.

#. Exporters must have GST registration (except in exempt cases) at the time of export.

#. Goods must be exported from India (eligible ports: sea, air, land, Inland Container Depots, Land Customs Stations).

#. Exporters using EDI systems (Electronic Data Interchange) only can claim under RoDTEP for faster, automated processing.

#. Exports under Advance Authorisation, SEZs, EOUs are eligible if notified, else generally excluded.

#. Exporters of re-exported goods are not eligible (only goods manufactured in India qualify).

#. Third-party exports allowed: Export documents can mention a third party if the manufacturer is in India and the export is from India.

#. Deemed exports are not eligible under RoDTEP.

How Does the RoDTEP Scheme Work?

The RoDTEP Scheme works in the following ways:

#. The exporter ships goods from India via sea, air, or land routes having a valid Shipping Bill filed electronically.

#. The next step is to declare the intent to claim RoDTEP benefits in the shipping bill at the time of export.

#. RoDTEP Rates are linked to HS Codes and applicable rate and value cap will determine the refund amount.

#. After the customs verifies the export documentation and eligibility, the refund is issued in the form of RoDTEP Scrips.

#. After receiving these scrips, exporters can utilize it to pay basic customs duty on imports or also sell them in the market for liquidity.

Document Required for apply RoDTEP Scheme

#. Import Export Code Registration (IEC) copy

#. GST Registration Certificate

#. Shipping Bill filed electronically on ICEGATE (with RoDTEP claim selected)

#. Export Invoice and Packing List

#. Bill of Lading / Airway Bill

#. RCMC if applicable

#. Electronic Bank Realisation Certificate (e-BRC) as export payment proof

#. Export General Manifest (EGM) filed by the shipping line/airline

#. Digital Signature Certificate (DSC) for ICEGATE login and scrip generation

#. Any other supporting documents requested by customs during verification (if required)

RoDTEP Rates and How They Are Calculated

RoDTEP Refund Process

When you file your shipping bill on the ICE Gate Portal, always consider the ‘Yes’ option for the RoDTEP subsidy scheme. If you don’t do this, it will automatically make you ineligible for RoDTEP License or refunds.

The next step is to wait for the airline or shipping line to file an export general manifest and get it confirmed by customs. If processed successfully, your RoDTEP scroll will be processed.

You will be able to see the RoDTEP Scroll generated in your ICEGATE. RoDTEP Scroll will have your:

#. Shipping bill numbers

#. HS codes (product categories)

#. Refund rate

#. Refund amount

The next move to make is to go to the credit ledger in your ICEGATE account and setup a RoDTEP Ledger if not done already. RoDTEP License Ledger is like a digital wallet for your e-scrips and it will store all the refund credits generated.

After the scroll is ready, click to generate e-scrips and these will represent your refund. You will also be able to view, track and manage these e-scrips using your ICEGATE Account.

You can now:

#. Use your e-scrips to pay Basic Customs Duty on imports, or

#. Transfer/sell them to another IEC holder who needs them.

What is the Annual RoDTEP Return?

If your total RoDTEP refund in a year is:

#. Over ?1 crore, or

#. More than ?50 lakh for a single 8-digit HS code

Then you must file an ARR with DGFT before March 31 of the next financial year.

What if you don’t file Annual RoDTEP Return?

If you don’t file an annual RoDTEP Return under the RoDTEP Scheme, you may need to pay a hefty composition fee such as Rs. 10,000 or 20,000. The bigger risk is you might also become ineligible for RoDTEP refunds.

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How to Apply for a RoDTEP Scrips

#1. The first requirement is that you get a valid Import Export Code and GST Registration.

#2. Next you need to ensure that your shipping bill is electronically filed on ICE Gate.

#3. While filing your Shipping Bill, you need to ensure to choose the RoDTEP Option to claim the benefit on your exported product.

#4. Furthermore, you need to submit the correct HS Code with the applicable RoDTEP Rate to ensure accurate collection.

#5. Once your export is done and customs is cleared, the customs will verify your RoDTEP claim digitally.

#6. After verification, the eligible RoDTEP credit will reflect in your electronic ledger on ICEGATE

#7. Log in to ICEGATE to generate duty credit scrips from the available credits.

#8. Use the scrips to pay Basic Customs Duty on imports or transfer/sell them to other importers if desired.

Validity and Renewal Process of the RoDTEP Scrips

The duty credit scrips are valid for 1 year from the date of issue on ICEGATE. Once expired, you can not renew the RoDTEP License or duty credit scrips.

Even after expiry of Scrips, our team of experts can recover the scrip and sale in the market. Contact our experts at 8881-069-069 for consultation.

Comparing RoDTEP Scheme Vs MEIS Vs SEIS

How E-Startup can help you get benefits of the RoDTEP Scheme?

E-Startup simplifies the RoDTEP Scheme process. We have experts who utilize the advanced tools to file shipping bills with the RoDTEP Option, ensuring you get correct and maximum refunds. Our team of professionals have more than decade of experience and help you effectively track export documentation, automate customs compliance, and monitor RoDTEP credit ledger updates on ICEGATE. Our experts are also well-versed in filing annual RoDTEP Return, so all your hassles are dealt at one single place. Without you needing to go anywhere else. In short, hiring us for the RoDTEP Scheme offers you the opportunity to maximize the eligible refunds, avoid errors, and expedite credit generation. So, without further a do, contact us and get your RoDTEP Scheme benefits with ease.