Central govt. has expanded the scope of RoDTEP scheme on 7 December 2022 to boost exports. Now exports made from chemical sector, pharmaceuticals sector and exports of articles of iron and steel under chapters 28, 29, 30 and 73 of ITC(HS) schedule of items will be covered under RoDTEP scheme. The full form of RoDTEP is Remission of Duties and Taxes on Exported Products. Read this article till the end to know complete details about RoDTEP scheme.

RoDTEP Scheme Expansion

RoDTEP scheme is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters. To reduce the tax load on exported goods, govt. releases a list, on a timely basis, which includes the names of sectors as well as article which are covered under Rodtep Scheme and are exempted from levying tax duty. 
Now govt. of India has expanded its scope and included more sectors in Rodtep Scheme List. As per the new list, exports made from chemical sector, pharmaceuticals sector and exports of articles of iron and steel under chapters 28, 29, 30 and 73 of ITC(HS) schedule of items will also not incur an export duty.

Date of Extended Rodtep Scheme Implementation

The expanded list of items under Rodtep scheme will be applicable for exports made from 15th December, 2022. This was a long-standing demand of the industry which has been accepted and will go a long way in boosting our exports and competitiveness in the global markets, generate employment and contribute to the overall economy. 

New Rodtep Scheme List

The expanded list of eligible export items under Appendix 4R will increase from current 8,731 export items (8 digit tariff lines) to 10,342 export items (8 digit tariff lines). 

RODTEP Scheme Rates

Rodtep Scheme rates are official now and can be checked online through the link - https://www.dgft.gov.in/CP/?opt=RoDTEP

About Rodtep Scheme

RoDTEP scheme rebates/refunds the embedded Central, State and local duties/taxes to the exporters that were so far not being rebated/refunded. The scheme is being implemented from 1st January 2021 and the rebate is issued as a transferable electronic scrip by the Central Board of Indirect Taxes & Customs (CBIC) in an end to end IT environment.

Central govt. is making every possible effort to support domestic industry and make it more competitive in the international markets. The union govt. is reforming export centric industries and is introducing better mechanisms so as to increase their competitiveness, boost exports, generate employment and contribute to the overall economy. This will go a long way in achieving our vision of building an Aatmanirbhar Bharat.

Currently, exports are facing headwinds on account of signs of recession in some of the developed markets & supply chain disruptions on account of Russia-Ukraine conflict. RODTEP Scheme extension to uncovered sectors like chemicals, pharmaceuticals & articles of Iron & Steel is likely to enhance the export competitiveness of these sectors.

Objectives of RODTEP Scheme

RODTEP Scheme's objective is to refund, currently un-refunded:-
  • Duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product, and
  • Such indirect Duties/ taxes/ levies in respect of distribution of exported products.
Rebate under the RODTEP Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited. RoDTEP is going to give a boost to Indian exports by providing a level playing field to domestic industry abroad. RoDTEP support will be available to eligible exporters at a notified rate as a percentage of Freight On Board (FOB) value. Rebate on certain export products will also be subject to value cap per unit of the exported product.

RoDTEP Scheme Guidelines PDF Download

The RODTEP Scheme is to be implemented by Customs through a simplified IT System. Rebate will be issued in the form of a transferable duty credit/ electronic scrip (e-scrip) which will be maintained in an electronic ledger by the Central Board of Indirect Taxes & Customs (CBIC). Identified export sectors and rates under RoDTEP cover 8555 tariff lines in addition to similar support being extended to apparel and made-ups exports under RoSCTL scheme of Ministry of Textiles. Link to download RODTEP scheme guidelines PDF - https://drive.google.com/file/d/1_PgIykCWs50tRJwheczKD7EjCf2f8E-4/view?usp=sharing

Employment Oriented Sectors like Marine, Agriculture, Leather, Gems & Jewellery etc. are covered under the Scheme. Other sectors like Automobile, Plastics, Electrical / Electronics, Machinery etc. also get support. The entire valve chain of textiles also gets covered through RoDTEP & RoSCTL.