Circular Details

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme - applicable wef 1st Jan, 2021

7th January 2021

To: All ELCINA Members

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme - applicable wef 1st Jan, 2021

Dear Member,

Government of India has announced the “Remission of Duties and Taxes on Exported Products (RoDTEP)” Scheme from 1st January, 2021. The scheme is meant for remission of all those taxes/Levies which are non-creditable and non-refundable during exports. To boost exports, the Government has decided to extend the benefit of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods. Refund would be credited in an exporter’s ledger account with Customs and used to pay Basic Customs duty on imported goods. The credits can also be transferred/sold to other importers. The RoDTEP rates would be notified at an early date by the Department of Commerce, these rates will be based on the recommendation of a Committee chaired by Dr. G.K. Pillai, former Commerce and Home Secretary.

The Ministry of Finance has issued a PIB Release in this regard, the Release may be downloaded from HERE.

Salient Features of RoDTEP Scheme:

1. An exporter desirous of availing the benefit of the RoDTEP scheme shall be required to declare his intention for each export item in the shipping bill or bill of export.
2. The notified rates, irrespective of the date of notification, shall apply with effect from 1st January, 2021 to all eligible exports of goods.
3. The new RoDTEP scheme/benefits would not be applicable for the exports by SEZ/EoU units.

The mandatory declarations for availing RoDTEP benefits are provided in the document RoDTEP Declarations in Shipping Bill which may be (downloaded from HERE).

Ref Srl. 3 above, the issue of denial of RoDTEP benefits to EOU’s/SEZ’s is a matter of serious concern to manufacturers in these zones. This matter has also been taken up by Export Promotion Council for EOU’s & SEZ’s (EPCES) through their letter to Ministry of Commerce may be referred from the link (EPCES Letter) and a recommendation supporting EPCES was sent by Ministry of Commerce to RoDTEP Committee (Link: DoC Recommendation).

ELCINA proposes to take up this issue urgently and we request all members who are exporters, especially those in SEZ’s or who are EOU’s to share their views on this subject. Kindly give details of the unremitted taxes/duties/charges paid (which have not been refunded or allowed for credit) and which should rightfully be refunded through RoDTEP Scheme.

Some examples of such unrefunded taxes are Tax on Fuel for Transportation as well as for captive power consumption, all types of surcharges during imports, taxes embedded in purchases from unregistered delears etc.

We request members to kindly share these details on top urgent basis so that ELCINA can write to Ministry of Commerce & Ministry of Finance as well as to MeitY. Kindly share your inputs with the undersigned and with ashish@elcina.com.

With regards,
Rajoo Goel
Secretary General
ELECTRONIC INDUSTRIES ASSOCIATION OF INDIA (ELCINA)
(Formerly ELCINA Electronic Industries Association of India - CIN: U74899DL1967NPL015218)
ELCINA House, 422, Okhla Industrial Estate, Phase III
New Delhi 110020, INDIA
Tel: +91-11-26924597, 26928053, 41615985; +91-9911445893
Fax: +91-11-26923440
Website: www.elcina.com