RODTEP / ROSCTL

RoDTEP stands for Remission of Duties and Taxes on Export Products.

Under the RoDTEP Scheme, the exporters can get the refund of embedded central, state, and local duties or taxes that were not getting refunded under any of the existing schemes earlier. It is expected that the scheme will significantly impact India’s competitiveness in the international market in the next 5 to 10 years and would work on the principle that taxes/duties should not be exported, It should either be exempted or remitted to exporters. Implementation of the RoDTEP Scheme is done by the schemes earlier. It is expected that the scheme will significantly impact India’s Customs, Icegate Portal. On 17th August 2021, Government released the guidelines and benefit rates under RoDTEP Scheme for 8555 tariff lines. The rebate rate varies from 0.5% to 4% of FOB value with a cap on value per unit on products where it is required. Below is a diagram showing the history of export promotion schemes, for a better understanding of their evolution

• Central & state taxes on the fuel (Petrol, Diesel, CNG, PNG, and coal cess, etc.) used for transportation of export products.
• The duty levied by the state on electricity used for manufacturing.
• Mandi tax levied by APMCs.
• Toll tax & stamp duty on the import-export documentation. Etc.
• The Scheme will ensure that the Exporter only exports goods and services, not any kind of taxes, and the RoDTEP Scheme would cover all indirect Central & State taxes that are not reimbursed in any existing scheme.

RoSCTL stands for Rebate of State & Central Taxes Levies.

The cabinet of India approved the RoSCTL Scheme to rebate all state and central taxes for garments and made-ups by replacing the previous scheme Rebate of State Levies, which provides only rebates of state taxes. The RoSCTL Scheme came into effect from 07/03/2019.Rosctl Scheme was majorly introduced to give boost to the textile industry by giving them incentives against their export.

As we know, the USA has filed a complaint against India at the World Trade Organization (WTO). The complaint is that the Indian government gives undue benefits to Indian Exporter under export subsidies like the MEIS scheme, and it is against the WTO rules. Therefore, the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is a new scheme introduced by the Ministry of Commerce. Currently, RoSCTL scheme is only valid for garments and made-ups (i.e., Chapter 61, 62 & 63). Further, this scheme would be extended to all sectors.

As per Public Notice No. 58/2015-20 Dated 29.01.2020, Merchandise Exports from India Scheme (MEIS) has also been withdrawn for Export items falling under Chapter- 61, 62 & 63, w.e.f, 07.03.2019.

We assist our clients in the preparation of documents in providing hassle-free services.

• Prepare and submit online applications to obtain the License under the RODTEP/ROSCTL scheme.
• Registration of the License done in custom from our office.
• We also assist in the selling of licenses, provide help in documentation for the transfer of a license to the buyer.
• Also, do the online transfer by recording the details on the ICEGATE portal and DGFT website.
• Consult our clients about the benefits they can avail of on their products and the country in which they export.