RoDTEP attains for Remission of Duties and Taxes on Export Products. It is a distinct scheme that is appropriate with effect from January 1st, 2021, designed to replace the existing MEIS (Merchandise Exports from India Scheme). In this article, we will discuss the RODTEP Scheme and its features.
RODTEP stands for Remission of Duties and Taxes on Export Product and came into effect from January 1st, 2021. Also, the RODTEP scheme for export is not new and you are probably knowing it as it is just replacing the existing MIES (Merchandise Export from India scheme).
RODTEP Scheme is also considered as MIES (Merchandise Export from India Scheme)
The scheme is to benefit all the exporters and ensures to receive refunds on the embedded taxes and duties. This scheme will help in boosting the local and domestic Indian industries with all its new features.
Earlier MIES schemes were there and it is the same as MIES just with some additional features and benefits for the exporters. To avail of this scheme, you need to claim RODTEP in the shipping bill and then you can avail all the benefits easily.
Eligibility Criteria for RODTEP Scheme
There are eligibility criteria for every exporter and they must fulfil the criteria and show their eligibility to avail the benefit of the RODTEP scheme for Export.
- Merchant exporters, as well as manufacturer exporters both, are eligible for this scheme.
- Goods exported via courier through e-commerce platforms are eligible too for this scheme.
- The exported goods or products should be of Indian origin and no foreign countries and no re-exported either are eligible.
Benefits of RODTEP Scheme
There are several benefits and with this new scheme, the additional features are even more exciting and beneficial for exporters.
- Now with the RODTEP scheme embedded central, local duties and state taxes would be refunded to them which was not there in the previous scheme.
- Refund of indirect taxes especially in the manufacturing sector of exported products which is a great benefit. You can now complain about WTO trade norms where it was not present in the MIES scheme.
- The mode of issuance was different earlier where you had to carry the hard copy and transferable script. Now the transferable duty scrip or electronic scrip would be there.
New Features of RODTEP Scheme
Earlier, there were only limited features available inside the scheme but now some new features are also there. The additional features would be a great advantage for all the exporters and will help to grow the local industries.
There will be 30% of total indirect taxes incurred from the exporters shall be refunded. There are additional features like certain duties such as state taxes on water, oil, power, and education that shall be refunded with this scheme.
If you require any kind of guidance related to the Import Export Code, please feel free to contact our business advisors at 8881-069-069.
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