Export subsidy India

1. The Power of Remission: RoDTEP Scheme

The RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme is the flagship program replacing the older MEIS scheme. Its core objective is to refund various embedded Central, State, and Local taxes and levies that are not already reimbursed under GST or Duty Drawback.

What RoDTEP Refunds:

RoDTEP specifically covers the taxes and duties incurred at the pre-manufacturing or distribution stage, which include:

• Central Excise Duty on fuel used for transportation (like diesel).

• VAT or Excise Duty on fuel used in captive power generation.

• Taxes on electricity consumption used for manufacturing.

• Mandis Tax, Stamp Duty, and various local levies.

Key Features & How to Claim:

• Benefit Structure: The refund is provided as a percentage of the FOB (Freight on Board) value of the exported product, with rates varying by product’s ITC-HS Code (typically ranging from 0.3% to 4.3%).

• Mechanism: The refund is issued in the form of transferable Duty Credit Electronic Scrips (e-scrips), which are maintained in an electronic ledger on the ICEGATE portal.

• Application Process: Exporters must declare their intent to claim RoDTEP in the Shipping Bill at the time of export. The claim is then processed automatically by Customs once the Export General Manifest (EGM) is filed.

2. Specialized Support: RoSCTL Scheme

The RoSCTL (Rebate of State and Central Taxes and Levies) Scheme is a parallel, specialized scheme introduced for the highly labor-intensive Textile and Apparel Sector.

Who Benefits?

This scheme is crucial for exporters of:

• Apparels/Garments (Chapter 61 and 62).

• Made-ups (Chapter 63, such as bed linens, towels, and curtains).

Why RoSCTL is Separate:

The textile industry has unique embedded taxes. RoSCTL provides a higher, specific rebate on these taxes, making Indian garments and made-ups globally competitive.

• Benefit Structure: Similar to RoDTEP, benefits are given as transferable e-scrips.

3. Other Crucial Export Incentive Schemes

Beyond the direct tax remission schemes, Indian exporters should leverage these financial and policy aids:

• Interest Equalisation Scheme (IES): Provides a subsidy (typically 2-3%) on pre- and post-shipment rupee export credit, effectively lowering your borrowing cost and making bank finance cheaper.

• Duty Drawback Scheme (DBK): Refunds Customs duties and Central Excise/Service Tax paid on inputs used in the manufacture of exported goods. This is claimed through the Shipping Bill itself.

• Advance Authorisation (AA) / EPCG Schemes: These are Duty Exemption schemes that allow exporters to import raw materials (AA) or capital goods (EPCG) duty-free, provided an export obligation is fulfilled.

🔑 The Globax Solutions Advantage: Claiming What’s Yours

Export subsidies are not automatic. They require precise documentation, knowledge of HS Code rates, and flawless filing on Customs and DGFT portals.

Common Mistakes that Cost Exporters Thousands:

1. Missing Declaration: Failing to tick the RoDTEP/DBK box on the Shipping Bill means you lose the entire benefit.

2. RCMC Mismatch: Not having the correct RCMC (Registration-cum-Membership Certificate) required for certain benefits.

3. Documentation Discrepancies: Errors in the Shipping Bill or Invoice leading to claim rejection.

Globax Solutions ensures maximum realization of your benefits by providing:

• Pre-Shipment Compliance Check: We verify your Shipping Bill declaration and documents to ensure all claims are correctly initiated.

• E-Scrip Management: We assist with creating your credit ledger on ICEGATE and generating the transferable e-scrips, ensuring you can monetize your benefits quickly.

• Policy Advisory: We keep you updated on all changes in RoDTEP rates, extensions, and compliance requirements.