RoDTEP SCHEME

RoDTEP SCHEME

Subject : Government Schemes

Context : Benefit of Remission of Duties and Taxes on Exported Products (RoDTEP) scheme will be extended to all export goods from January 1, 2021, the finance ministry said in a statement

Concept :

• 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, the ministry said.
• So far refunds were not taking place, adversely impacting exports. India’s exports fell 8.74% in November, steeper than 5.12% dip in October at $23.52 billion.
• The RoDTEP rates, conditions and exclusions under which it can be availed would be specified by the department of commerce, based on recommendation of the GK Pillai committee that are expected soon.

About RoDTEP Scheme

• RoDTEP is a scheme for the Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
• It has replaced the current Merchandise Exports from India Scheme, which is not in compliance with WTO norms and rules.
• The new RoDTEP Scheme is fully WTO compliant scheme.
• It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.

Merchandise Exports from India Scheme (MEIS)

• MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
• This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and will be in existence till 2020.
• MEIS intends to incentivise exports of goods manufactured in India or produced in India.
• The incentives are for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
• The MEIS covers almost 5000 goods notified for the purpose of the scheme.