Summary: The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is a government initiative that replaced MEIS, aiming to refund various central, state, and local taxes embedded in exported goods to boost global competitiveness. To claim these benefits, exporters must use the E-scrip module on the Indian Customs Electronic Gateway (ICEGATE) portal, which is managed by CBIC. Exporters must have a valid IEC (Import Export Code) to register their E-scrip account on ICEGATE, linked to their shipping bills. After the Export General Manifest (EGM) is filed and customs processes the claim, a scroll with the admissible rebate amount is generated in the user’s ICEGATE account, allowing the exporter to create and generate the E-scrip credit ledger. The validity period of these unutilized duty credits in the E-scrip has been extended by the CBIC from one year to two years from the date of creation, providing exporters with greater flexibility to offset applicable customs duties.
1. Overview of E-scrip and the RoDTEP Scheme
To understand how to register for an E-scrip, it’s important to first know about the RoDTEP scheme. RoDTEP (Remission of Duties and Taxes on Exported Products) was introduced by the government to replace the earlier MEIS scheme. Its main purpose is to refund the taxes and duties that exporters pay, so their products stay competitive in global markets. By offering these refunds, the government hopes to encourage more exports and increase India’s presence in international trade. Simply put, RoDTEP helps exporters get back the central, state, and local taxes paid during production and shipping.
The Indian Customs Electronic Gateway (ICEGATE), managed by CBIC, offers e-filing services for exporters. ICEGATE has developed an E-scrip module to support exporters with tax rebate benefits. Exporters can claim benefits under schemes like RoDTEP through this module. To avail these benefits, exporters must create an E-scrip account linked to shipping bills. IEC (Import Export Code) is essential for E-scrip registration on ICEGATE.
2. Tax Rebates Offered Under RoDTEP
The RoDTEP scheme helps exporters by giving back the various taxes and duties they pay at the Central, State, and Local levels during production and transport of their goods.
These refunds include indirect taxes paid on raw materials, power, and other services used in making the product.
3. Steps to Avail Benefits Under the RoDTEP Scheme
The RoDTEP scheme provides for rebate of Central, State and Local duties/taxes/levies which are not refunded under any other duty remission schemes. The broad provisions are as under:
- To avail the scheme exporter shall make a claim for RoDTEP in the shipping bill by making a declaration.
- Once EGM is filed, claim will be processed by Customs.
- Once processed, a scroll with all individual Shipping Bills for admissible amount would be generated and made available in the user’s account at ICEGATE.
- User can create RoDTEP credit ledger account under Credit Ledger tab. This can be done by IECs who have registered on ICEGATE with a DSC.
- Exporter can log in into his account and generate scrip after selecting the relevant shipping bills.
4. Validity Period of E-scrips Extended
The Central Board of Indirect Taxes and Customs (CBIC) has amended the Electronic Duty Credit Ledger Regulations, 2021, through the Electronic Duty Credit Ledger (Amendment) Regulations, 2022. As a result, the validity of e-scrips has been extended from 1 year to 2 years from the date of their creation in the ledger. Any unutilized duty credits within an e-scrip at the end of this 2-year period will lapse. The amendment specifically modifies Regulation 6(2) of the 2021 Regulations to reflect this extended timeframe. This regulatory change provides enhanced flexibility for exporters utilizing these duty credits, allowing them a more extended window to apply them against applicable customs duties.
5. Conclusion
Guide to E-scrip registration under the Remission of Duties and Taxes on Export Products (RoDTEP) scheme. It meticulously details the procedure for creating an E-scrip account on the ICEGATE portal, encompassing the necessary steps for registration and navigating the platform to generate E-scrips. The guidelines, objectives, and methodologies established by the Central Board of Indirect Taxes and Customs (CBIC) enable exporters to avail the benefits of tax rebates offered by the RoDTEP scheme.
Author Bio
