(THE GIST OF PIB) Remission of Duties and Taxes on Exported Products
Remission of Duties and Taxes on Exported Products
Taking a major step to boost exports, the Centre has 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.
This was a long-standing demand of the industry which has been accepted and will go a long way in boosting our exports and competitiveness in the global markets, generate employment and contribute to the overall economy.
Merchandise Exports from India Scheme (MEIS) was introduced under Foreign Trade Policy of India (FTP 2015-20), as a part of Exports from India Scheme.
The scheme provides incentive in the form of duty credit scrip to exporters to compensate for their losses on payment of duties. The scrips can be transferred or used for payment of a number of duties including the basic customs duty.
Dispute in WTO
In 2019, a World Trade Organization (WTO) dispute resolution panel ruled that MEIS was not in compliance with the global trade norms.
Additionally, many exporters had persistently complained that the MEIS scheme doesn’t offset all the taxes.