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

Syllabus: General Studies Paper 3

Taking a major step to boost exports, Centre today further expanded the scope of RoDTEP Scheme (Remission of Duties and Taxes on Exported Products) by including the exports made from the Chemical sector, Pharmaceuticals sector and exports of articles of iron & steel under chapters 28, 29, 30 and 73 of ITC(HS) schedule of items.

About RoDTEP Scheme

• Launched by: Ministry of Commerce & Industry
• The RoDTEP scheme is replacing the earlier Merchandise and Services Export Incentive Schemes (MEIS and SEIS) that were in violation of WTO norms.
• It aims to reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.
• The refund under the scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.
• The scheme seeks to rebate sales tax, excise duty, electricity duty, stamp duty etc.
• The rebate will be in the form of a transferable duty credit/electronic scrip (e-scrip) that will be maintained in an electronic ledger by the Customs.

Key Features of the RoDTEP Scheme

• The scheme covers over 8,555 tariff products, accounting for about 75% of traded items and 65% of India’s exports.
• The tax refund rates will vary between 0.5% and 4.3% of the export value of goods.
• The lowest rate is offered on items like chocolates, toffees and sugar confectionery.
• Yarns and fibres have been granted the highest rate.
• The scheme covers sectors such as marine, agriculture, leather, gems and jewellery automobile, plastics, textiles, electronics among others.

Question: What are the key features of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?