(The Gist of PIB) Remission of Duties and Taxes on Exported Products (RoDTEP) [MARCH-2020]
(The Gist of PIB) Remission of
Duties and Taxes on Exported Products (RoDTEP)
Remission of Duties and Taxes on
Exported Products (RoDTEP)
The Cabinet Committee on Economic Affairs, has given its approval for
introducing the Scheme for Remission of Duties and Taxes on Exported
It is under which a mechanism would be created for reimbursement of
taxes/ duties/ levies, at the central, state and local level, which are
currently not being refunded under any other mechanism, but which are
incurred in the process of manufacture and distribution of exported
This scheme is going to give a boost to the domestic industry and Indian
exports providing a level playing field for Indian producers in the
International market so that domestic taxes/duties are not exported.
Under the Scheme an inter-ministerial Committee will determine the rates
and items for which the reimbursement of taxes and duties would be provided.
In line with “Digital India”, refund under the Scheme, in the form of
transferable duty credit/electronic scrip will be issued to the exporters,
which will be maintained in an electronic ledger.
The Scheme will be implemented with end to end digitization.
The refunds under the RoDTEP scheme would be a step towards
“zero-rating” of exports, along with refunds such as Drawback and IGST.
This would lead to cost competitiveness of exported products in
international markets and better employment opportunities in export oriented
At present, GST taxes and import/customs duties for inputs required to
manufacture exported products are either exempted or refunded. However,
certain taxes/duties/levies are outside GST, and are not refunded for
exports, such as, VAT on fuel used in transportation, Mandi tax, Duty on
electricity used during manufacturing etc. These would be covered for
reimbursement under the RoDTEP Scheme.
The sequence of introduction of the 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 rebate would be claimed as a percentage of the Freight on Board
(FOB) value of exports.
A monitoring and audit mechanism, with an Information Technology based
Risk Management System (RMS), would be put in to physically verify the
records of the exporters.
As and when the rates under the RoD TIP Scheme are announced for a
tariff line/ item, the Merchandise Exports from India Scheme (MEIS) benefits
on such tariff line/item will be discontinued.