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

Santhosh Kumar 13/03/2024
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Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme mind map Recent News: Extension to additional sectors: Date: 8 March 2024 Announced by: Union Minister Piyush Goyal Sectors: Advance Authorisation holders, Export Oriented Units, Special Economic Zones units Recognition: Contribution of these sectors to 25% of India's exports Support provided: ₹42,000 Crores to more than 10,500 export items Budget: ₹15,070 Crore for current financial year, 10% increase in FY 2024-25 Extension duration: Till 30.09.2024 Key sectors benefiting: Engineering, Textiles, Chemicals, Pharmaceuticals, Food Processing Vision: Enhance export competitiveness, employment opportunities, economic growth, Aatmanirbhar Bharat Government's confidence: Negotiate new FTAs, accelerate towards USD One trillion merchandise export levels When: Inception: January 2021 Recent Extension Announced: 8 March 2024 Why: Purpose: Refund various embedded taxes and duties on exported products Aim: Enhance India's export competitiveness in international markets What Rebate mechanism: Notified percentage of FOB value Cap on value per unit where required Fixed quantum for rebate amount per unit notified for some products Implementation: Department of Revenue, end to end digitization, transferable Duty Credit Scrip/electronic scrip Coverage: 8555 tariff lines Exports composition: Agricultural goods account for 13.6% of total exports Rebate examples: Diamond, Basmati rice, Frozen shrimps, Motor cars, Turbo-jets, Ingots Exclusions: Certain exports and products based on RoDTEP committee's recommendation Where: Applicability: Export goods from India Who: Implementing body: Department of Revenue, Central Board of Indirect Taxes and Customs (CBIC) Beneficiaries: Exporters of more than 10,500 items at 8-digit ITC HS Code level How: Process: Automated system for issuance of transferable Duty Credit Scrip/electronic scrip Record Keeping: Electronic ledger in CBIC Significance: Compliance with WTO trade norms Inclusion of certain taxes not covered in other schemes Enhances competitiveness in foreign markets Challenges: Ineligibility criteria for certain exports and products Comparison: With MEIS and RoSCTL: MEIS: Incentive in form of transferable scrips, dispute on WTO compliance RoSCTL: Rebate of certain taxes, compliant with WTO norms, issued in paperless mode RoDTEP: Refund of indirect taxes, compliant with WTO norms, issued in electronic form

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, introduced by the Government of India in January 2021, aims to enhance India’s export competitiveness by refunding various embedded taxes and duties on exported products. Recently, it was extended to additional sectors such as Advance Authorisation holders, Export Oriented Units, and Special Economic Zones units, acknowledging their significant contribution to India’s exports. The scheme operates through an automated system, providing rebates on more than 10,500 export items at the 8-digit ITC HS Code level, and is in compliance with WTO trade norms, aiming to provide a level playing field for domestic players in the international market​​​​​​.

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