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Remission of Duties & Taxes on Exported Products (Rodtep)Scheme

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Remission of Duties & Taxes on Exported Products (Rodtep)Scheme Remission of Duties & Taxes on Exported Products (RoDTEP) Scheme CA. Bhavesh T. Sorathiya B. T. SORATHIYA & CO. Chartered Accountants Address: Office No. 220, Heera Panna Complex, Dr. Yagnik Road, Rajkot Cont.: +91-281-2462838 www.cabtsc.com :INDEX: ❖ SILENT FEATURES OF THE SCHEME ❖ WHO IS NOT ELIGIBLE FOR THE SCHEME ❖ NATURE OF REBATE ❖ OTHER POINTS TO KEPT IN MIND ❖ NOTIFICATION NO.19/2015-2020 DT.17.08.2021 ❖ APPENDIX 4R (RATES OF RoDTEP) As shared with you earlier in our previous update on RODTEP, now Director General of Foreign Trade (DGFT) and Ministry of Finance (MoF) has issued final Notification stating rates and other provisions, guidelines on RoDTEP, same is discussed hereunder. With reference press note dated 31.12.2020 issued by CBIC on the new RoDTEP scheme being operationalized from 01.01.2021. Necessary changes in the System have also been made to accept and process RoDTEP claims. SILENT FEATURES OF THE SCHEME: ❖ The Scheme will take effect for Exports from 1st January 2021. However, effective date for export obligation under advance authorisation, export by 100% Export Oriented Units (EOU), export by Special Economic Zone (SEZ), export by Free Trade Zone will be decided later. ❖ The rebate would be claimed as a percentage of the Freight on Board (FOB) value of exports with value cap per unit of the exported product. ❖ The Scheme will be implemented with end-to-end digitization. ❖ RoDTEP rates will be reviewed annually and will be notified well in advance before the beginning of the Financial year. ❖ The Scheme will operate in Budgetary framework of each financial year and necessary calibrations and revisions will be made as and when required so that the projected remissions for each financial are managed within the approved budget of the Scheme. ❖ The sequence of introduction of the scheme across sectors, prioritization of sectors to be covered will be decided and notified by the Department of Commerce (DoC) in consultation with Department of Revenue. ❖ The rebate allowed is subject to the receipt of sales proceeds within time allowed under the Foreign Exchange Management Act 1999 (FEMA). General time allowed to receive sales proceeds is 9 (Nine) months from date of export. Rebate would not be dependent on the realization of export proceeds at the time of issue of Rebate. However, adequate safeguards to avoid any misuse on account of non-realization of export proceeds and other systemic improvements as in operation under Drawback Scheme, IGST and other GST Refunds relating to exports would also be applicable for claims made under the RoDTEP Scheme. Necessary provisions for recovery of rebate amount where foreign exchange is not realized within specified period, suspension of/withholding of RoDTEP in case of frauds and misuse, as well as imposition of penalty will also be built suitably by CBIC. ❖ MECHANISM OF ISSUE OF REBATE: The Scheme would be implemented through end to end digitalization of issuance of rebate amount in form of a transferable duty credit/electronic scrip (e-scrip), which will be maintained in an electronic ledger by Central Board of Indirect Taxes & Customs (CBIC). Necessary rules and procedures regarding grant of RoDTEP claim under the Scheme and implementation issues including manner of application, time period for application and other matters including export realization, export documentation, sampling procedures, record keeping etc would be notified by the CBIC, Department of Revenue on an IT enabled platform with view to end to end digitalization. WHO IS NOT ELIGIBLE FOR THE SCHEME? The following categories of exports / exporters are not eligible for rebate under RoDTEP Scheme: ➢ Export of imported goods. ➢ Export through trans-shipment meaning thereby exports that are originating in third country but trans-shipped through India. ➢ Export products which are subject to minimum export price of export duty. ➢ Products which are restricted for export under schedule 2 of Export Policy in ITC (HS). ➢ Products which are prohibited for export under schedule 2 of Export Policy in ITC (HS). ➢ Deemed Exports. ➢ Supplies of products manufactured by DTA (Domestic Tariff Area) units to SEZ/FTWZ units. ➢ Products manufactured in Electronic Hardware Technology Park (EHTP) and Bio Technology Park (BTP). ➢ Products manufactured partly or wholly in warehouse under section 56 of the Customs Act 1962 (52 of 1962). ➢ Products manufactured or exported in discharge of export obligation against an Advance Authorisation or Duty Free Import Authorisation of Special Advance Authorisation issued under duty exemption scheme of relevant Foreign Trade Policy. ➢ Products manufactured or exported by unit licensed as 100% Export Oriented Units (EOU) in terms of provision of the Foreign Trade Policy. ➢ Products manufactured or exported by any of the units situated in Free Trade Zones (FTZ) or Export Processing Zones (EPZ) of Special Economic Zones (SEZ). ➢ Products manufactured or exported availing the benefit of the Notification No. 32/1997-Customs dated 1st April 1997. NATURE OF REBATE: The e-scrips would be used only for payment of Customs leviable under the First Schedule to the Customs Tariff Act, 1975 viz. Basic Customs Duty. OTHER POINTS TO KEPT IN MIND: The Exporter would be required to keep records substantiating claims made under this Scheme. Sample cases for physical verification will be drawn objectively by Risk Management System (RMS) based on risk and other relevant parameters. NOTIFICATION NO.19/2015-2020 DT.17.08.2021 APPENDIX 4 R (RATE OF RoDTEP) APPENDIX 4 R - Notified on 17.08.2021 under Notification No 19/2015-20 APPENDIX 4R : Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) RODTEP Tariff Item Description of Goods (As per CTH ) RODTEP UQC Cap (Rs. Entry No. Rate as % Per UQC) age of FOB (#) (1) (2) (3) (4) (5) (6) 0301 LIVE FISH Ornamental Fish 1 03011100 Freshwater 0.5% Kg 2 03011900 Other 0.5% Kg Other Live Fish 3 03019100 Trout (Salmo trutta, Oncorhynchus mykiss, 0.5% Kg Oncorhynchus clarki, Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus chrysogaster) 4 03019200 Eels (Anguilla spp.) 0.5% Kg 5 03019300 Carp (Cyprinus spp., Carassius spp., Ctenopharyngodon 0.5% Kg idellus,Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni, Megalobrama spp. 6 03019400 Atlantic and PacficBluefin tunas (Thunnus thynnus) 2.5% Kg 16 7 03019500 Southern bluefin tunas (Thunnus maccoyii) 2.5% Kg 16 8 03019900 Other 0.5% Kg 0302 FISH, FRESH OR CHILLED, EXCLUDING FISH FILLETS AND OTHER FISH MEAT OF HEADING 0304 Salmonidae, excluding edible fish offal of sub-headings 0302 91 to 0302 99 9 03021100 Trout (Salmo trutta, Oncorhynchus mykiss, 0.5% Kg Oncorhynchus clarki, Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus chrysogaster) 10 03021300 Pacific Salmon (Oncorhynchus nerka, Oncorhynchus 0.5% Kg gorbuscha,Oncorhynchus keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus masou and Oncorhynchus rhodurus) 11 03021400 Atlantic salmon (Salmo salar) and Danube salmon (Hucho 2.5% Kg 16 hucho) 12 03021900 Other 2.5% Kg 16 Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae and Citharidae) excluding edible fish offal of sub-headings 030291 to 030199: 13 03022100 Halibut (Reinhardtius hippoglossoides, Hippoglossus 2.5% Kg 16 hippoglossus, Hippoglossus stenolepis) 1 APPENDIX 4 R - Notified on 17.08.2021 under Notification No 19/2015-20 RODTEP Tariff Item Description of Goods (As per CTH ) RODTEP UQC Cap (Rs. Entry No. Rate as % Per UQC) age of FOB (#) (1) (2) (3) (4) (5) (6) 14 03022200 Plaice (Pleuronectes platessa) 2.5% Kg 16 15 03022300 Sole (Solea spp.) 2.5% Kg 16 16 03022400 Turbots (Psetta maxima) 2.5% Kg 16 17 03022900 Other 0.5% Kg Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito (Euthynnus (Katsowonus) pelamis) excluding edible fish offal of sub-headings 0302 91 to 0301 99: 18 03023100 Albacore or longfinned tunas (Thunnus alalunga) 2.5% Kg 16 19 03023200 Yellowfin tunas (Thunnus albacares) 2.5% Kg 16 20 03023300 Skipjack or stripe-bellied bonito 2.5% Kg 16 21 03023400 Bigeye tunas (Thunnus obesus) 2.5% Kg 16 22 03023500 Atlantic and Pacific Bluefin tunas (Thunnus thynnus, 2.5% Kg 16 Thunnus orientalis) 23 03023600 Southern bluefin tunas (Thunnus maccoyii) 2.5% Kg 16 24 03023900 Other 2.5% Kg 16 Herrings (Clupea harengus, Clupea pallasii), anchovies (Engraulis spp.), sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella spp.), brisling or sprats (Sprattus sprattus), mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus) Indian mackerels (Rastrelliger spp.) seerfishes (Scomberomorus spp.) jack and horse mackerel (Trachurus spp.) jacks, creavalles (caranx spp.) cobia (Rachycentron canadum), silver promfrets (Pampus spp.), Pacific saury (Coloabis saira), scads (Decapterus spp.) cpelin (Mallotus villosus), Sword fish (Xiphias gladius), Kawkawa (Euthynnus affinis), bonitos (Sarda spp.), marlins, sailfishes, spearfish (Istiophoridae), excluding edible fish offal of sub headings 0302 91 to 0302 99: 25 03024100 Herrings (Clupea harengus, Clupea pallasii) 2.5% Kg 16 26 03024200 Anchovies (Engraulis spp.) 2.5% Kg 16 27 03024300 Sardines, (Sardina pilchardus, sardinops spp.) sardinella 2.5% Kg 16 (Sardinella spp.) brisling or sprats (Sprattus sprattus) 28 03024400 Mackerel (Scomber scombrus, Scomber australasicus, 2.5% Kg 16 Scomber japonicus) 29 03024500 Jack and horse mackerel
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