Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme
![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](https://www.iasexpress.net/wp-content/uploads/2024/03/Remission-of-Duties-and-Taxes-on-Exported-Products-RoDTEP-Scheme-1024x636.jpeg)
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.