**Executive Summary:**
This notification amends the Foreign Trade Policy 2015-2020 to incorporate the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP). The scheme aims to refund currently unrefunded duties, taxes, and levies at the central, state, and local levels, including prior stage cumulative indirect taxes on exported products and their distribution. The amendments are effective immediately, as of August 3, 2021.
**Key Points / Main Content:**
* **Amendment to Foreign Trade Policy:**
* A subpara (e) is inserted in para 4.01 of the Foreign Trade Policy 2015-20 to include the RoDTEP Scheme.
* Chapter 4 of the Foreign Trade Policy 2015-20 is updated to include details of the RoDTEP scheme.
* **RoDTEP Scheme Objectives and Principles:**
* Objective is to refund duties, taxes, and levies on exported products not currently refunded.
* This includes central, state, and local level taxes, as well as prior stage cumulative indirect taxes on goods and services used in production and distribution.
* Rebates are not available for duties and taxes already exempted, remitted, or credited.
* **Determination of Ceiling Rates:**
* A committee under the Department of Revenue (Drawback Division) will determine ceiling rates.
* The committee will include representatives from DoC/DGFT, relevant Ministries, and experts.
* The Department of Commerce will prioritize sectors.
* Norms for fixation of rates will be based on embedded central, state & local duties/taxes/levies borne on export products & such indirect duties/taxes/levies in respect of distribution of exported products that are not exempted or remitted or credited.
* Priority shall be given to export sectors that generate higher employment and have high export potential.
* The RoDTEP rates will be revised and reviewed periodically.
* **Operating Mechanism:**
* The Scheme will be implemented through end-to-end digitization.
* Rebate will be issued as transferable duty credit/electronic scrip maintained in electronic form.
* Electronic scrip will be used for payment of Basic Customs Duty on imported goods or any other duty/tax/levy.
* There will be provisions for verification to ensure risks of misuse/fraud are minimized.
* **Ineligible Categories of Exports:**
* Exports under Advance Authorisation, Duty Free Import Authorisation (DFIA).
* Exports of imported goods covered under Para 2.46 of FTP.
* Exports through EOU, FTWZ, EPZ.
* Products manufactured partly or wholly in a warehouse under section 65 of the Customs Act.
* Products manufactured or exported by units in FTWZ.
* Exports for which electronic documentation in ICEGATE EDI has not been generated.
* Exports availing the benefit of Notification No. 32/1997-Customs dated 1.4.1997.
* Exports of goods taken into use after manufacture.
* Deemed exports.
* Supplies to SEZ/FTWZ units.
* **Other Points:**
* The government can modify or relax the scheme's provisions.
* Claiming RoDTEP is not allowed if benefits are claimed under para 4.5.01(a) and 4.5.01(b).
* The IGST refunds shall not be held up for exports where RoDTEP is also being claimed.
* Customs shall also ensure that there is no misuse or fraud.
* **Monitoring and Audit:**
* An Output Outcome framework will be maintained.
* A monitoring, audit, and risk management system will be put in place.
* Necessary records must be maintained as per Customs requirements.
* **Digital Implementation:**
* The rebate will be digitally issued.
* Detailed operating procedures, including application filing, will be separately notified.
**Impact Analysis:**
* **Exporters:**
* *Impact:* Benefit from reduced export costs through remission of duties and taxes, leading to enhanced competitiveness in international markets. However, some exporters may be negatively affected as not all categories of exports are eligible under RoDTEP.
* *Action Required:* Understand the eligibility criteria and operating procedures for claiming rebates under the RoDTEP scheme. Familiarize themselves with the digital application process.
* **Department of Revenue (Drawback Division) & Committee:**
* *Impact:* Responsible for determining ceiling rates for rebates under the scheme.
* *Action Required:* Establish the committee and define the norms for fixation of rates and review them periodically.
* **Department of Commerce & DGFT:**
* *Impact:* Involved in prioritizing sectors and providing input to the rate determination committee.
* *Action Required:* Identify and prioritize key export sectors to be covered under the RoDTEP scheme.
* **Customs Authorities:**
* *Impact:* Responsible for implementing the scheme, ensuring compliance, and preventing misuse of the rebate mechanism.
* *Action Required:* Establish necessary monitoring, audit, and risk management systems to prevent fraud and misuse and design the digital integration of RoDTEP.
Key Entities Referenced
Remission of Duties and Taxes on Exported Products (RoDTEP): A scheme introduced by the Department of Commerce, Government of India, to refund duties and taxes on exported products.
Foreign Trade Development and Regulation Act, 1992: An act of the Parliament of India to provide for the development and regulation of foreign trade.
Foreign Trade Policy 2015-20: A policy document outlining guidelines and objectives for foreign trade, which is amended by this notification.
Department of Commerce: The department under the Ministry of Commerce and Industry, Government of India, responsible for formulating and directing foreign trade policy.
Department of Revenue: The department in the Ministry of Finance responsible for all matters relating to direct and indirect Union taxes.
New Delhi: The location from where the notification regarding the RoDTEP scheme is issued.
Directorate General of Foreign Trade (DGFT): The organization responsible for implementing the Foreign Trade Policy with the main objective of promoting Indian exports.
ICEGATE EDI: Indian Customs Electronic Commerce Gateway. It is a portal that facilitates electronic filing of Bills of Entry and other declarations.
To be published in the Gazette of India Extraordinary Part II Section 3, Sub Section (1)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan, New Delhi
Notification No: 19 /2015-2020
New Delhi, the ¢3August, 2021
Subject: Scheme Guidelines for Remission of Duties and Taxes on Exported Products
(RoDTEP)
S.O.(E): In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and
Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy 2015-20, the Central
Government hereby makes the following amendments in the Foreign Trade Policy 2015-20 with
immediate effect:
2. A sub-para (e) is inserted in para 4.01 of the Foreign Trade Policy 2015-20 as below:
“(e) Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) notified by
Department of Commerce and administered by Department of Revenue.
3. The following is also added in the chapter 4 of the Foreign Trade Policy 2015-20:
SCHEME FOR REMISSION OF DUTIES AND TAXES ON EXPORTED PRODUCTS
(RoDTEP)
4.54 Scheme Objective and Operating Principles
i. The Scheme’s objective is to refund, currently un-refunded:
a. Duties/ taxes / levies, at the Central, State and local level, borne on the exported product,
including prior stage cumulative indirect taxes on goods and services used in the production
of the exported product and
b. Such indirect Duties/ taxes / levies in respect of distribution of exported product.
ii. The rebate under the Scheme shall not be available in respect of duties and taxes already
exempted or remitted or credited.
ii. | The determination of ceiling rates under the Scheme will be done by a Committee in the
by Department of Revenue/Drawback Division with suitable representation of the DoC/DGFT,Dli en pe a rm tin mi es nt tr i oe fs Ra en vd e ne ux ep .erts, on the sectors prioritized by Department of Commerce and
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(Amita eVedi Foz
Director General of F oreign Trade
Ex officio Additional Secretary to the Government of India
E-mail:dgft@nic.in
[Issued from File No. 01/61/180/155/AM21/PC3]