RoDTEP Scheme: New Guidelines for De-listing of Ineligible Items

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is an evolving pillar of India's foreign trade strategy. To maintain the integrity of the scheme and prevent international trade disputes, the Government has introduced a streamlined mechanism for the de-listing of specific export items that no longer qualify for remissions. This typically occurs when the embedded central, state, or local taxes for a specific product category are modified or neutralized via other schemes. ## What this means for exporters As per the recent Trade Notice issued by the DGFT and guidelines on the ICEGATE portal, exporters are advised to periodically audit their shipping bills to ensure they are not claiming RoDTEP for 'ineligible' items. Voluntary disclosure of incorrect claims is now encouraged through the RoDTEP e-ledger system. Failure to comply can lead to the recovery of remissions along with interest. Exporters should particularly watch for products that fall under 'restricted' or 'prohibited' categories, as these are generally excluded from RoDTEP benefits. We recommend a monthly reconciliation of your e-credits against the latest Appendix 4R issued by the DGFT to ensure total alignment with the Foreign Trade Policy 2023. Accurate record-keeping of your input tax expenditures remains the best defense during a RoDTEP composition audit.