Friday, January 8, 2021

RoDTEP – Why Advance Authorisation holders are also should be included in this scheme ? An insight view

 RoDTEP ( Remission of Duties and Taxes on Exported Products ) has come into effect from 01/01/2021 but the Central Government is yet to notify Item wise RoDTEP rates. All the eligible exporters are advised to claim for RoDTEP while filing the shipping bill. When the rates are notified it will automatically get credited to the exporters ledger in the form of credits which can later be converted to credit scrips. Refer recent ICEGATE demo video how to  activate this account. These scrips can be used by the exporters for their own imports or it can be transferred to other needy IEC holder.

The important issue is, RoDTEP is not allowed to shippers who are claiming benefits under certain other schemes like Advance Authorization, EOU, Jobbing etc. We need to understand one important issue that the Advance Authorization does not lead to the complete zero-rating of the exports. The cost of electricity, freight, fuel etc are not factored in AA benefits which are unavoidable in the manufacturing process

It is very clear that the availment of Advance Authorization will not lead to complete zero-rating hence the Government must issue an appropriate clarification in this regard. To give real meaning to Prime Minister’s Atma Nirbhar Bharat initiative, AA holders also should be honoured for their share of committed exports.

EXPORT PROMOTION COUNCIL FOR EOUs & SEZs has taken up this issue to Central Government vide their representation letter dated 02.01.2021. It is high time to FIEO & other export councils also to take it forward to Hon’ble Finance Minister, for the benefit of their members who are exporting under AA scheme.

I suggest that the exporters availing the benefit of Advance Authorization must also express their intent in the invoice & shipping bills for claiming the benefits under RoDTEP. Such claims may be considered favourably in near future.   

The above views of the author is purely personal .Readers are requested to take the decision on their own.                                                               

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