RoDTEP Scheme | Remission of Duties and Taxes on Exported Products

January 8, 2021
emission of Duties and Taxes on Exported Products RoDTEP Scheme

The government announced that the Benefit of Remission of Duties and Taxes on Exported Products – RoDTEP scheme will be extended to all export goods from January 1, 2021. The scheme has replaced the current Merchandise Exports from India Scheme.

RoDTEP is based on the principle that taxes and levies borne on the exported products should be either exempted or remitted to exporters unlike the Merchandise Exports from India Scheme (MEIS), which is an export incentive scheme.

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Remission of Duties and Taxes on Exported Products – RoDTEP scheme

  • Under the scheme, the embedded central, state and local duties or taxes will get refunded and credited in an exporter’s ledger account with customs.
  • This can be used to pay basic customs duty on imported goods.
  • The credits can also be transferred to other importers
  • It will give a boost to the domestic industry and Indian exports providing a level playing field for Indian producers in the International market so that domestic taxes/duties are not exported.
  • The refunds under the RoDTEP scheme would be a step towards “zero-rating” of exports, along with refunds such as Drawback and IGST.
  • The Scheme is being conceptualized keeping in view the WTO provisions, particularly the Agreement on Subsidies and Countervailing Measures (ASCM)
  • The RoDTEP rates would be notified shortly by the Department of Commerce, based on the recommendation of a committee chaired by Dr. G.K. Pillai, former Commerce, and Home Secretary.

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