GLOBAL SELLING BLOG

Understanding the benefits of RoDTEP scheme: A guide for Indian exporters

From manufactures, MSMEs to exporters, sellers and businesses across all sectors can avail the benefits of the newly introduced RoDTEP scheme by the Government of India. In this blog, understand what is RoDTEP scheme and its benefits.

Replacing the Merchandise Exports from India Scheme (MEIS), the Government of India introduced the RoDTEP scheme – Remission of Duties and Taxes on Export Products in January, 2021¹. To provide Indian exporters with incentives and benefits on taxes, the government launched RoDTEP aiming to boost exports from India to international markets. Under this scheme, exporters can avail refund at the central, state, and local levels of duties and taxes paid during exports.

Features of the RoDTEP scheme

Currently, there are certain taxes, duties and levies that are not refunded or reimbursed for exports such as, VAT on fuel used in transportation, Mandi tax, Duty on electricity used during manufacturing, etc. The RoDTEP scheme will cover a range of refunds like local taxes, all embedded taxes, central and state taxes on fuel (petrol, diesel, CNG, PNG, and coal cess, etc) used for transportation of export products, duty levied by the state on electricity used for manufacturing export products, toll tax and stamp duty on import-export documentation, etc².

Risk Management System, a monitoring and audit mechanism, will be used to verify and track the records of the exporters. From manufactures, MSMEs to merchant exporters, all sectors can avail the benefits of this scheme. There is no minimum export or turnover criteria for availing this scheme. However, all exported products should be Indian origin, meaning Made in India. E-commerce export products are also included in the RoDTEP scheme.

How to avail benefits of the RoDTEP scheme?

Follow the steps below to claim benefits of the RoDTEP scheme³:

● You must have a user account on ICEGATE.
● Make a declaration of the claim for RoDTEP in the shipping bill on the ICEGATE website. Your claim will be processed by the Customs department.
● After processing, the shipping bills for the admissible amount will be generated and available on the ICEGATE portal.
● Under the credit ledger tab, you must create a RoDTEP credit ledger account on the ICEGATE website.
● After the credit ledger account is created, login and generate scrip after selecting the relevant shipping bills.
● Once the scrip is generated, you can see it in your ledger account and check the refund that has been credited.

Read the detailed process here

How to export from India?

Every seller dreams of establishing his brand in the international markets. Whether you’re an exporter, online seller in India, startup or a multi-city store, with Amazon Global Selling, you can export from India with ease irrespective of your business type or size. You can register by submitted a few KYC documents like identity proof, address proof and credit card (to receive and make payments) in 15 minutes and start exporting from India. From manufactures, MSMEs to merchant exporters, all sectors can avail the benefits of this scheme. There is no minimum export or turnover criteria for availing this scheme. However, all exported products should be Indian origin, meaning Made in India. E-commerce export products are also included in this scheme.

Register your business

First, you must register your export business with Amazon Global Selling. You don’t have to be an existing Amazon India seller. The registration can be done online on Seller Central. You’ll need the following documents to register:
• PAN
• ID proof (Aadhar, driving license or passport)
• Business address proof (Bank statement)
• Credit or debit card (international transactions enabled)

List your products

Once you have successfully registered to sell globally on Amazon, you can list your products. Remember to follow tips on how to list your products include attractive pictures and descriptions that’s clear to international customers. You can also seek help from third party service providers.

Ship and receive payments

Once a customer places an order, you can choose to deliver by yourself or you can opt for Fulfillment by Amazon (FBA). Under FBA, Amazon takes care of shipping, delivery, returns and customer concerns. Once a customer purchases your product, Amazon credits the money in your bank account in the currency of your choice.

More blogs on export schemes

1. A guide to the Export Oriented Units (EOUs) scheme and process to avail its benefits

2. Gold Card Scheme for exporters: Objectives, eligibility and benefits

3. How to register for the Market Access Initiative (MAI) scheme?

4. What is the NIRVIK scheme for exporters?

5. All you need to know about Interest Equalisation Scheme and its benefits

6. All you need to know about the Transport and Marketing Assistance Scheme (TMA Scheme)

7. RoSCTL scheme: Benefits, eligibility and application procedure

8. What is Duty Entitlement Passbook (DEPB) Scheme for exporters?

9. Advance Authorisation Scheme: How does it help exporters?

10. What is Export Promotion Capital Goods Scheme (EPCG)?

11. What is Duty Drawback in export: Meaning, types and process

12. Understanding export incentives in India: What are the benefits for exporters?

13. What is Authorized Economic Operator (AEO) Programme: How to register and obtain AEO certificate?

Frequently Asked Questions

Who can claim the RoDTEP scheme?

From manufactures, MSMEs to merchant exporters, all sectors can avail the benefits of this scheme. There is no minimum export or turnover criteria for availing this scheme. However, all exported products should be Indian origin, meaning Made in India. E-commerce export products are also included in this scheme.

When did RoDTEP scheme start?

This scheme came into effect in January, 2021 replacing the old MEIS scheme.

Published on December 8, 2021.

Sources:
1. https://pib.gov.in/PressReleasePage.aspx?PRID=1746688
2. https://apeda.gov.in/apedawebsite/Announcements/RoDTEP.pdf
3. https://www.icegate.gov.in/Download/RoDTEP_Advisory-v3.0.pdf

What is Export Promotion Capital Goods Scheme (EPCG)?

Understanding export incentives in India: What are the benefits for exporters?