The Ministry of Commerce and Industry has notified the alignment of Remission of Duties and Taxes on Exported Products (RoDTEP) Provisions with the first schedule of the Customs Tariff Act, 1975.
The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme is an Indian government initiative aimed at providing financial assistance to exporters by way of remission of certain indirect taxes. The objective of the scheme is to boost the country’s export sector and enhance the competitiveness of Indian products in the global market.
Under the RoDTEP scheme, eligible exporters can claim reimbursement of the central and state taxes that they have paid on inputs, raw materials, and services used in the production of their exported products. The taxes that are covered under the scheme include the Goods and Services Tax (GST), duties, levies, and surcharges imposed by the central or state government.
The Central Government, on the recommendation of the Remission of Duties and Taxes on Exported Products (RoDTEP) Committee, notified the alignment of RoDTEP Schedule under Appendix 4R for chapter 28, 29, 30 & 73 with First Schedule of the Customs Tariff Act, 1975. This revised Appendix 4R shall be effective from 15.02.2023.
The revised Appendix 4R will be applicable for exports made from 15.02.2023 to 30.09.2023. However, to adhere to the Scheme budgetary framework, necessary changes and revisions as per Para 4.54 of FTP 2015-20 may be made whenever required.
The revised RoDTEP Appendix 4R containing the eligible RoDTEP export items, rates and per unit value caps, is available at the DGFT portal www.dgft.gov.in under the link ‘Regulatory Updates >RoDTEP’.
Consequent to inclusion of export items from Chapter 28, 29, 30 & 73 vide Notification No. 47 dated 07.12.2022 under RoDTEP, Appendix 4R is aligned with the First Schedule of the Customs Tariff Act, 1975 for implementation with effect from 15.02.2023.
The Appendix 4R was notified on 07.02.2023 under Notification No. 55 with effect from 15.02.2023.
Exporters need to apply for the RoDTEP scheme through the online portal of the Director-General of Foreign Trade (DGFT). They need to provide relevant details about their exported products and the taxes paid by them. The claims are processed by the DGFT and, once approved, the reimbursement is provided directly to the exporter’s bank account.
The RoDTEP scheme is expected to provide significant financial benefits to Indian exporters and help improve their competitiveness in the global market.
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