Procedure for products exported under RoDTEP is announced by the Finance Ministry
25th September 2021, Mumbai:
The method for issuing duty credit for products exported under the tax refund program Remission of Duties and Taxes on Exported Products has been announced by the finance minister (RoDTEP).
In August of this year, the RoDTEP plan issued tariffs for 8,555 items, including marine, agricultural, leather, jewels, and jewelry.
The stated export FOB (Freight On Board) value or up to 1.5 times the market price of that item, whichever is smaller, would be used to calculate duty credit under the program, according to a department of revenue announcement.
It stated that the duty credit would be granted in place of remission of any duty, tax, or levy imposed on any material used in the production or processing of products destined for export, and if such tax is not exempted, remitted, or credited under any other program.
The notice said, "The Central Government now informs the way in which duty credit would be issued for products exported under the Scheme for Remission of Duties and Taxes on Exported Products subject to such criteria and limits as indicated."
For the current fiscal year, the government has set aside Rs 12,454 crore for reimbursements under the program. Various government and state tariffs, taxes, and levies levied on input items, for example, would be reimbursed to exporters under this arrangement.
It also stated that duty credit under the scheme for exports to Nepal, Bhutan, and Myanmar would be granted only after the sale proceeds were realized against irrevocable letters of credit in freely convertible currency established by importers in these countries in favor of Indian exporters for the value of such goods.
