Remission of Duties and Taxes on Export Products (RODTEP) Scheme

Announced in 2020, it replaced the Merchandise Export from India Scheme (MEIS), which was not compliant with the rules of the World Trade Organisation.

  • The scheme would refund to exporters the embedded central, state and local duties or taxes that were not being rebated or refunded and were, therefore, placing India’s exports at a disadvantage.
  • Launched by: Ministry of Commerce & Industry

Reason for introducing this Scheme

  • India's various export promotion schemes including Merchandise Exports from India Scheme (MEIS), were challenged by the United States in WTO in early 2018.
  • To continue supporting the industry and to eliminate any uncertainty amongst the exporting community.
  • Ensure compliance with WTO norms.

Provisions

  • Under this Scheme, duties and taxes levied at the Central, State and local levels, such as electricity duties and VAT on fuel used for transportation, which are not getting exemptedor refunded under any other existing mechanism will be refunded to exporters in their ledger account with Customs.
  • The credits can be used to pay basic customs duty on imported goods or transferred to other importers – facilitating ease of transactions for exports.

Coverage of the Scheme

  • It covers about 75% of traded items and 65% of India’s exports.
  • All taxes, including those levied by States and even Gram Panchayats, will be refunded under the scheme.
  • Steel, pharma, and chemicals have not been included under the scheme because their exports have done well without incentives.
  • 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. The entire valve chain of textiles also gets covered through RoDTEP & RoSCTL.

Implementation

  • 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).

Significance

  • As affordable testing and certification will be made available to exporters within the country instead of relying on international organizations, Indian exporters will be able to meet the international standards for exports.
  • Businesses will get access to their refunds for GST via an automatic refund-route.
  • Support domestic industry, boost exports and make it more competitive in the international markets.
  • Generate employment and contribute to the overall economy.
  • Help in achieving our vision of building an Aatmanirbhar Bharat.

Related Content