RoDTEP Scheme
- August 17, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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RoDTEP Scheme
Subject: Government Schemes
Context: Centre has today notified RoDTEP Scheme Guidelines and Rates (Remission of Duties and Taxes on Exported Products). The scheme for zero rating of exports will boost our exports & competitiveness in the global markets
Concept:
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.
- 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.
- 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.
Scheme’s objective
- Duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product, and indirect Duties/ taxes/ levies in respect of distribution of exported products.
- RoDTEP support will be available to eligible exporters at a notified rate as a percentage of Freight On Board (FOB) value. Rebate on certain export products will also be subject to value cap per unit of the exported product.
- 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).
- 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.