India: Remission of Duties and Taxes on Exported Products (RoDTEP)

published on 31 March 2020 | reading time approx. 1 minute

Currently, there are certain taxes/duties/levies, at the central, state and local level, which are incurred in the process of manufacture and distribution of exported products but are not being refunded under any mechanism. Therefore, Hon’ble Finance Minister in her Budget Speech on 1st February 2020 had announced that scheme for “Reversion of duties and taxes on export product” will be launched this year to boost exports to international markets. Consequently, the Cabinet Committee on Economic Affairs, chaired by Hon’ble Prime Minister, Shri Narendra Modi, has given its approval for introducing the RoDTEP Scheme.

Objectives of the RoDTEP Scheme

To make Indian exports cost competitive and create a level playing field for exporters in International market;
To boost better employment opportunities in export oriented manufacturing industries

Salient features of the RoDTEP Scheme

Benefit would be provided on certain taxes/duties/levies (other than GST) which are not refunded for exports, such as, VAT on fuel used in transportation, Mandi tax, duty on electricity used during manufacturing etc.
The refund would be claimed as a percentage of the Freight On Board (FOB) value of exports
Merchandise Exports from India Scheme (MEIS) benefits would be discontinued on such tariff line/item for which benefit under RoDTEP Scheme is announced

The sequence of introduction of the RoDTEP Scheme across sectors, prioritization of the sectors to be covered, degree of benefit to be given on various items within the rates set by the Committee will be decided and notified by the Department of Commerce (DoC). The sector wise details, rates and procedural aspects are yet to be provided and it is widely expected to be notified separately.

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