RoDTEP SCHEME EXTENDED - EXPORTS MADE BY ADVANCE AUTHORISATION HOLDERS, EXPORT ORIENTED UNITS AND SPECIAL ECONOMIC ZONES UNITS

[RAMESH JENA]

RoDTEP stands for Remission of Duties and Taxes on exported products scheme. The RoDTEP scheme is the export subsidy scheme was launched by the Government as a WTO (World Trade Organisation) compliant scheme. The said scheme of exports benefit was announced by the Central Government by issuing press release on 31’st Deceber’2020, w.e.f 1’st January’2021 for all export goods

In order to give relief to the exporters by reimbursement of all State and local levies which are part of the prices of the goods exported, the said scheme was introduced as Remission of Duties and Taxes on exported products (RoDTEP).  RoDTEP is a new scheme was launched by the Government to replace the existing MEIS scheme for exports of goods from India and this scheme was announced by the Government vide press release dated 31-Dec-2020 by the advisory of Ministry of Finance, which is applicable to all export goods.

Initially the RoDTEP scheme does not cover exports by EOU’s, Advance Authorisation Holders and SEZ units subject to certain conditions were imposed by SEZ Division, Department of Commerce provided that if an SEZ unit files shipping bill under RoDTEP scheme, the same would be allowed after mentioning the certain conditions  in the remarks column of shipping bill meant for exports.

Now, the Minister of Commerce & Industry, the Government of India come out with the proposal to extend the benefits of RoDTEP scheme to AA Holders, EOU’s and SEZ Units vide Notification No.70/2023, dated 08-03-2024. The relevant amended Foreign Trade Policy 2023 is reproduced as under:

“2. Para 4.55: Ineligible supplies/items/categories under the Scheme-

The serial numbers (viii), (x), (xi) and (xii) of Para 4.55 of FTP 2023 are deleted with effect from 11-3-2024.

3. Serial number (vii) of Para 4.54 is amended to be read as follows:

Existing Provision

Amended Provision

'Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product, wherever required, on export of items which are categorized under the notified 8 digit HS Code. However, for certain export items, a fixed quantum of rebate amount per unit may also be notified. Rates of rebate/value cap per unit under RoDTEP will be notified in Appendix 4R. In addition to necessary changes which may be brought in view of budget control measures as mentioned above, efforts would be made to review the RoDTEP rates on an annual basis and to notify them well in advance before the beginning of a financial year.'

'Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product, wherever required, on export of items which are categorized under the notified 8 digit HS Code. However, for certain export items, a fixed quantum of rebate amount per unit may also be notified. Rates of rebate/value cap per unit under RoDTEP will be notified in Appendix 4R and Appendix 4RE [for exports of products manufactured by Advance Authorisation holders (except Deemed Exports), EOU and SEZ units]. In addition to necessary changes which may be brought in view of budget control measures as mentioned above, efforts would be made to review the RoDTEP rates on an annual basis and to notify them well in advance before the beginning of a financial year.'

4. A new Para 4.59A is added to be read as follows:

'For exports of products manufactured by AA holders (except Deemed Exports), EOU and SEZ units, the eligible RoDTEP export items, rates and per unit value caps, wherever applicable, are contained in Appendix 4RE and is available at the DGFT portal (www.dgft.gov.in) under the link >Regulations>RoDTEP'.

5. (a) In line with serial number (x) of Para 4.54, the implementation date/period for exports under Appendix 4RE is being notified for exports of products manufactured by Advance Authorisation holders (except Deemed Exports) and Export Oriented Units (EOUs) from 11-3-2024 till 30-9-2024 only.

(b) The RoDTEP implementation for exports of products manufactured by SEZ units will happen once the IT integration of SEZ units with Customs Automated System (ICEGATE) takes place, which is expected to be operational from 1-4-2024. The implementation period for exports of products manufactured by Free Trade Warehousing Zone or SEZ units will be from the date of implementation till 30-9-2024 only.

(c) However, to adhere to the budgetary framework as provided under Para 4.54 of FTP 2023 so that the outgo remains within the approved Budget of the Scheme, necessary changes including revisions or deletions, wherever necessary, will be made in Appendix 4R & Appendix 4RE as and when required.

6. In order to carry out alignments in the RoDTEP schedule necessitating out of the recommendations of the RoDTEP Committee relating to AA holders (except Deemed Exports), EOU and SEZs, revised RoDTEP rates for 25 HS codes in Appendix 4R are being notified.

7. In supersession of Notification No.33/2023 dated 26th September, 2023, the RoDTEP scheme is being extended beyond 30-6-2024 and shall be applicable till 30-9-2024 now.

8. The notified new Appendix 4RE and the revised rates for 25 export items (8-digit HS codes for Appendix 4R) are available at DGFT portal www.dgft.gov.in under the link > 'Regulations > RoDTEP'.

Effect of this Notification:

i.		RoDTEP is being extended to AA holders (except Deemed Exports) & EOU units from 11-3-2024 till 30-9-2024 as per Appendix 4RE.
ii.		Extension of RoDTEP to SEZ units as per Appendix 4RE will take place on IT integration of SEZs with Customs Automated System (ICEGATE).
iii.		RoDTEP rate revisions in 25 HS Codes are also being made in Appendix 4R.
iv.		RoDTEP Scheme extended earlier in September 2023 till 30-6-2024, is being further extended for exports till 30-9-2024.

Conclusion: The RoDTEP scheme has been completed more than three years from its implementation under Foreign Trade policy. The fundamental principles of FTP, ‘Let the goods are exported’, not the taxes therein’ and the objective behind introduction of RoDTEP scheme, under which a mechanism has been created for reimbursement of taxes/duties/levies, at the Central, State and local level, which were not covered under any other refund mechanism, but which are incurred in the process of manufacturing and distribution of exported products. The CBIC has notified manner of issue of duty credit for goods exported under the RoDTEP Scheme under Foreign Trade Policy, 2023 vide Notification No.24/2023-Customs (NT) dated 01-04-2023 subject to such conditions and restrictions as specified herein, in accordance with paragraph 4.01(d) of the Foreign Trade Policy. The Government has also included the exports made by Advance authorization holders, EOU’s and SEZ units to be eligible under this scheme as they also suffer the incident of State and Central levies which are not available as refund under GST. The RoDTEP scheme has been extended for exports made from 01.10.2023 and also is being further extended for exports till 30-9-2024.