We shared detailed booklet on new export incentive scheme viz. Remission of Duties and Taxes on Exported Products (‘RoDTEP’) containing all information as available in public domain. While RoDTEP rates are yet to be notified, RoDTEP stands operationalized with effect from January 2021. Within 2 weeks of implementation, RoDTEP has raised major concerns for industry over simultaneous claim of RoDTEP along with other export incentives as granted under Foreign Trade Policy, 2015-20.

Exporters are required to declare their intention to claim RoDTEP in Shipping Bill or Bill of Export. Corresponding changes have been incorporated in Customs Automated System on ICEGATE Portal. Pertinent to note that the Customs Automated System for filing of shipping bill is not allowing RoDTEP along with Advance Authorization (‘AA’) / Export Promotion Capital Goods (‘EPCG’) Scheme. Similarly, it is not allowing exporters to claim RoDTEP benefit where exports proceeds are not realized in convertible foreign exchange (exports to Nepal etc).

NITYA Comments:

CBIC detailed concept and structure of RoDTEP vide Circular F. No. 605/22/2020-DBK/862-932 dated August 10, 2020. Basis this Circular, RoDTEP (just like MEIS) will be in addition to present schemes. To everyone’s surprise, Customs Portal is not allowing claim of RoDTEP if exporter claims benefits like AA, EOU, jobbing, EPCG etc. Hence, exporters are forced to choose only one benefit in Shipping Bill. 

RoDTEP aims to reimburse taxes like Excise Duty and VAT on fuel, Electricity Duty etc. which are not otherwise exempted / refunded under present schemes including AA and EPCG. Hence, RoDTEP benefit is over and above existing schemes. Accordingly, this part of declaration in Shipping Bill is contrary to framework of RoDTEP. This anomaly is also evident from the fact that an exporter can claim RoDTEP along with Duty Drawback but not AA though both Duty Drawback and AA refund exempt custom duties on imported inputs. This situation has created chaos amongst exporter community and needs resolution at the earliest. 

In absence of legal framework of RoDTEP, exporters are in dark on legality of such restrictions. Furthermore, in absence of RoDTEP rates, exporters cannot take decision on which scheme to choose. Till time there is clarity, exporters can consider choosing RoDTEP with a remark in Shipping Bill that they also intend to claim AA and EPCG on such exports. The exporters should also file specific intimation to this effect with customs authorities as well as file representations before the Central Government to correct such anomaly. 

Considering widespread confusion on this issue, news reports are indicating that the Government is planning to extend MEIS scheme by 3 months. (Refer:https://economictimes.indiatimes.com/news/economy/policy/governments-rodtep-scheme-could-face-legal-challenges-warn-tax experts/articleshow/80262393.cms?)