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

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme Latest News

The Government recently extended the Remission of Duties and Taxes on Exported Products (RoDTEP) incentive scheme for exporters until March 31, 2026.

About Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme

• It was introduced through an amendment to the Foreign Trade Policy 2015-20, and it became effective for exports starting January 1, 2021.
• The primary aim of this scheme is to offset the taxes and duties incurred on exported goods that wouldn’t otherwise be credited, reimbursed, or refunded in any way, and are integrated into the exported goods.
• It is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing scheme.
• It is compliant with World Trade Organization (WTO) norms and is implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency.
• It was enforced to repeal and reduce taxes on exported products, thereby encouraging exports and increasing the number of exports in the country.
• The scheme is administered by the Department of Revenue, Ministry of Finance.
• It replaced the Merchandise Export Incentive Scheme (MEIS), in response to the US challenging Indian export subsidies under the MEIS at the WTO. 
• Tax Reimbursement under RoDTEP Scheme:
  • The Scheme provides a mechanism for reimbursement of taxes, duties, and levies, which are currently not being refunded under any other mechanism at the central, state, and local levels, but which are incurred by the export entities in the process of manufacture and distribution of exported products.
  • This not only includes the direct cost incurred by the exporter but also the prior stage cumulative indirect taxes on goods.
• RoDTEP Scheme Eligibility Criteria:
  • All sectors are covered under the scheme. 
  • Labor-intensive sectors will be accorded priority.
  • Both manufacturer exporters and merchant exporters (traders) are eligible for the scheme.
  • There is no turnover threshold for availing of benefits under the scheme.
  • The exported products should have India as their country of origin to be eligible for benefits under the scheme.
  • Special Economic Zone Units and Export Oriented Units are also eligible.
  • The scheme also applies to goods that have been exported via courier through e-commerce platforms.
  • Re-exported products are not eligible under this scheme.
• Process of Refund:
  • Rebates under the scheme are provided to eligible exporters as a percentage of the freight on board (FOB) value of exports.
  • Remission is issued in the form of transferable e-scrips (a type of certificate with some monetary value) maintained in an electronic credit ledger by the CBIC (Central Board of Indirect Taxes and Customs).
  • e-scrips used to pay basic customs duty on imported goods. The credits can also be transferred to other importers.
• Speedy Clearance Through Digitalization: Faster clearance through a digital platform will be facilitated through a monitoring & audit mechanism, with an IT-based risk management system that would physically verify the exporters’ records.

Source: TH

‹ ›