RoDTEP

Remission of Duties and Taxes on Exported Products

This scheme actually came into the picture to boost the exports.

Under this scheme an exporter can recover various duties and taxes paid on inputs in production of exported products.

The scheme aims to reimburse duties and taxes such as mandi tax, VAT and central excise on fuel etc. which are levied at central, state and local level and not refunded under any mechanism

Earlier, MEIS (Merchandise Export Incentive Scheme) was there to do the same task, but MEIS was not in accordance with WTO guidelines, so GoI withdraws the same on WTO instructions and RoDTEP comes to replace the MEIS scheme, which is in accordance with WTO norms.

GoI has decided to extend the benefits of the scheme to all goods, with effect from January 1,2021.

The rates for different sectors include 0.5%, 2.5% and 4%.

Some points worth considering:

• The exported products need to have the country of origin as india, to claim benefits under this scheme.
• Goods exported through e-commerce platform are also eligible for the scheme.
• There is no minimum threshold limit to claim the benefits.
• Rebate is not available for duties and taxes already exempted or remitted.
• Re-exported goods are not eligible under this scheme.
• The reimbursed amount in the form of e-scrips will be credited in exporter's ledger account with customs at ICEGATE portal.
• E-scrips can be used by exporters to pay basic customs duty on imported goods.