Context: The government has decided to extend the benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods starting January 1, 2021.

• The scheme will refund to exporters, the embedded central, state and local duties and taxes.

About the RoDTEP Scheme

• The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was announced by Government of India (GOI) on 14 September 2019.
• It was aimed to boost exports by allowing reimbursement of taxes and duties, which are not exempted or refunded under any other scheme in accordance with World Trade Organization (WTO) norms.
• RoDTEP is a combination of the current Merchandise Export from India Scheme (MEIS) and Rebate of State and Central Taxes and Levies (RoSCTL).

Key features

• Remission of taxes/duties/levies
• RoDTEP covers reimbursement of duties and taxes (such as mandi tax, VAT and central excise on fuel, etc.).
• Automated refund system
• In line with digital India, refund will be issued to exporters in the form of transferable duty credit/ electronic scrips, which will be maintained in an electronic ledger.
• Speedy clearance through digitalisation
• A monitoring and audit mechanism, with an information technology-based risk management system would be put in to physically verify the records of the exporters.

Scheme for all sectors

• RoDTEP covers all sectors including textile.
• A dedicated committee shall decide the sequence of introduction of the scheme across sectors, prioritisation of the sectors and degree of benefit to be given to various items.

Key benefits

• It can provide a seamless flow of economic benefit from the government.
• It will add more competitiveness in the foreign markets, with assured duty benefits by Government of India (GOI).
• Under RoDTEP, taxes such as state taxes on power, oil, water and education cess, are also proposed to be included in the indicative list making the scheme exhaustive.
• It will help exporters meet international standards and boost business growth.