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

18 Mar, 2020

Source from DGFT

RoDTEP scheme :

It is WTO compliant, will reimburse taxes/duties/levies at the central, state and local level, which are currently not being refunded.

Objective :  

  1. To boost exports Scheme for enhancing Exports to International Markets.
  2. To make Indian exports cost competitive and create a level playing field for exporters in International market.
  3. To give a boost to employment generation in various sectors.

ImplementationItems will be shifted in a phased manner from existing scheme MEIS to RoDTEP with proper monitoring & audit mechanism.

Items and RatesAn inter-ministerial Committee will determine the rates and items for which the reimbursement of taxes and duties would be provided, The rebate would be claimed as a percentage of the Freight On Board (FOB) value of exports

Refund MechanismRefund will be in the form of transferable duty credit / electronic scrip will be issued to the exporters, which will be maintained in an electronic ledger. The Scheme will be implemented with end to end digitization. In line with “Digital India”.

Advantages :

  1. The refunds under the RoDTEP scheme would be a step towards “zero-rating” of exports.
  2. This would lead to cost competitiveness of exported products in international markets.
  3. Better employment opportunities in export-oriented manufacturing industries.
  4. Increases the productivity, boost exports and contribute to the overall economy.

Taxes CoveredVAT on fuel used in transportation, Mandi tax, Duty on electricity used during manufacturing etc., these would be covered for reimbursement under the RoDTEP Scheme.

Effect of this SchemeAs and when the rates under the RoDTEP Scheme are announced for a tariff line/ item, Merchandise Exports from India Scheme (MEIS) benefits on such tariff line/item will be discontinued.

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