What is RoDTEP scheme?
RoDTEP is an acronym for Remission of Duties and Taxes on Export Products. It was taken in to effect on January 1, 2021, to replace the existing MEIS (Merchandise Exports from India Scheme). The main purpose of creating the scheme is to increase exports. The initiative would ensure that exporters receive refunds on unrecoverable embedded taxes and levies.
The RoDTEP Scheme Is Required For
The United States had challenged India's primary export subsidy schemes in the World Trade Organization (WTO), arguing they were harmful to American workers.
A WTO dispute panel decided against India, declaring that the Government of India's export subsidy programs breached the rules of the trade body's norms. The committee also recommended that the export subsidy programs be discontinued. As a result, the RoDTEP Scheme was created to ensure that India remains WTO compliant.
Some of the export subsidy programs considered for withdrawal include:
India's Merchandise Exports
Export-Oriented Units Scheme
Scheme for Electronics Hardware Technology Parks
Parks for Biotechnology Scheme
Capital Goods Export Promotion
Scheme
Special Economic Zones Plan (SEZ)
System for Duty-Free Imports for Exporters
RoDTEP Scheme Characteristics
Previously Duty and tax refunds that were non-refundable Mandi tax, VAT, coal cess, Central Excise duty on fuel, and other taxes will now be refunded under this arrangement. That’s what is RoDTEP Scheme now covers, all goods covered by the MEIS and the RoSTCL (Rebate of State and Central Taxes and Levies).
Automated credit system
The return will be in the form of transferable electronic scratch cards. These duty credits will be kept and managed in an electronic ledger.
Digitalization allows for quick verification.
The implementation of the digital platform has resulted in substantially speedier clearance. The exporters' records will be verified using an IT-based risk management system to ensure the timeliness and correctness of transaction processing.
Scheme with multiple sectors
What is the RoDTEP scheme covering? It covers all sectors, including textiles, to maintain uniformity across all locations. In addition, a dedicated committee will be formed to deliberate on the order in which the scheme would be implemented across the various sectors, the degree of benefit to be offered to each industry, and other related issues.
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