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

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

• The RoDTEP scheme would refund to exporters the embedded central, state and local duties or taxes that were so far not been rebated or refunded.
• It was launched in January 2021 as a replacement for the Merchandise Export from India Scheme (MEIS).
• Under this scheme, a rebate will have to be claimed as a percentage of the Freight On Board value of exports.
• Rebates 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 and Customs (CBIC).

What is Freight on Board

• It is also called Free on Board (FOB) is a term used to indicate who is liable for goods damaged or destroyed during shipping.
• FOB origin means the buyer is at risk and takes ownership of goods once the seller ships the product.
• FOB destination means the seller retains the risk of loss until the goods reach the buyer.

 

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Q1) What is a Rebate?

A rebate is a credit paid to a buyer of a portion of the amount paid for a product or service. In a short sale, a rebate is a fee that the borrower of stock pays to the investor who loaned the stock.

Source: Export benefits under RoDTEP extended to 18 textile items including sari