The Ministry of Commerce and Industry vide Notification No. 19/2015-2020 dated August 17, 2021 has amended Foreign Trade Policy 2015-20 (“FTP”) for introducing a Scheme for Remission of Duties and Taxes on Exported Products (“RoDTEP”) in the following manner:
- Scheme objective and operating principles for ReDTEP include:
- Objective being to refund Duties/taxes/Levies at the central state and local Level on exported product and indirect duties/taxes/levies on distribution of exported product which were not subjected to refund before.
- Rebate not to be available on taxes/duties already exempted or remitted or credited
- Ceiling rates determination by Committee in Department of Revenue
- Budget to be finalised by Ministry of Finance
- Grant of Rebate to be provided to eligible exporters on export of items categorised under notified HSN codes along with the mechanism of Issuance of such rebate, recovery of rebate where foreign exchange not realised etc. to be notified by the Central Board of Indirect Taxes and Customs (“CBIC”).
- Categories of exports like exports through trans shipment, deemed exports, goods taken into use after manufactured etc. are ineligible for rebate under ReDTEP subject to Governments modification in the list at the later date.
- Monitoring and audit mechanism with an IT-based Risk Management System (“RMS”) would be put in place by the CBIC for physical verification of the records of exporters on a sample basis.
- Residual Issues to be considered by Inter-Ministerial Committee, RODTEP Policy Committee (“RPC”) to be chaired by Directorate General of Foreign Trade (“DGFT”).
Scheme guideline for the new scheme for RoDTEP can be accessed at: https://content.dgft.gov.in/Website/dgftprod/ee052ba4-d026-4e3b-a100-20fdd0daeba2/Notification%20No.%2019%20English.pdf
Rate for the new scheme for RoDTEP can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2021/08/Appendix-4R-as-notified-on-17-August-2021-for-DGFT-Portal.pdf