RoDTEP Scheme: Guidance on Non-Transferable Rates for Certain Sectors

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is designed to neutralize taxes that are not otherwise refunded. However, many exporters are unaware of the specific restrictions regarding the transferability of duty credit scrips. While the majority of RoDTEP scrips are freely transferable, certain special categories and specific DGFT authorizations can restrict this movement. As defined in the Foreign Trade Policy and relevant CBIC Circulars, the duty credit must be used for payment of Basic Customs Duty (BCD) on imports. Exporters must be cautious when entering contract terms that assume the sale of scrips at a discount, as products exported under certain special schemes might have restricted credit usage. Specifically, the conversion of shipping bills to the RoDTEP scheme after the export has occurred requires stringent adherence to the 'Intent' declaration on the shipping bill. ## What this means for exporters Manufacturers should verify their 8-digit HS Code against Appendix 4R to confirm the exact rate and check for any 'Note' that limits the transfer of the resulting scrip. Inaccurate assumptions about scrip liquidity can negatively impact cash flow projections. Always ensure the 'Declaration of Intent' is marked 'Yes' on the EDI system during the filing of the Shipping Bill to remain eligible for the credit.