Remission of Duties and Taxes on Exported Products (RoDTEP) scheme

In news- In order to boost exports, the Ministry of Commerce & Industry has notified RoDTEP Scheme Guidelines and Rates (Remission of Duties and Taxes on Exported Products).

Key features of RoDTEP Scheme

- Under the RoDTEP, various Central and State duties, taxes, and levies imposed on input products, among others, would be refunded to exporters.

It replaced the ongoing Merchandise Exports from India Scheme (MEIS).

- The scheme for zero rating of exports will boost our exports & competitiveness in the global markets.
- The government has set aside Rs.12,454 crore for refunds under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for the current fiscal.

The rebate under the Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.

RoDTEP is going to give a boost to Indian exports by providing a level playing field to domestic industry abroad.
RoDTEP support will be available to eligible exporters at a notified rate as a percentage of Freight On Board (FOB) value.
Rebate on certain export products will also be subject to value cap per unit of the exported product.
Scheme is to be implemented by Customs through a simplified IT System.
Rebate will be issued in the form of a transferable duty credit/ electronic scrip (e-scrip) which will be maintained in an electronic ledger by the Central Board of Indirect Taxes & Customs (CBIC).
Identified export sectors and rates under RoDTEP cover 8555 tariff lines in addition to similar support being extended to apparel and made-ups exports under Rebate of State and Central Taxes and Levies (RoSCTL) scheme of Ministry of Textiles.
Employment Oriented Sectors like Marine, Agriculture, Leather, Gems & Jewellery etc. are covered under the Scheme.
Other sectors like Automobile, Plastics, Electrical / Electronics, Machinery etc. also get support.
However three sectors of steel, chemicals and pharmaceuticals would not get the benefit of RoDTEP.
Products manufactured or exported at export-oriented units and special economic zones have been excluded from the scheme for the time being.
Both RoDTEP and RoSCTL will remain in effect for three years till March 2024.
The new scheme is not like the MEIS, which was an export incentive scheme, and is considered to be in violation of multilateral trade rules at WTO.