05-01-2021 | 15:01 PM
RoDTEP (Remission of Duties and Taxes on Exported Products) scheme
Context
The Government of India has recently announced that the benefits of RoDTEP (Remission of Duties and Taxes on Exported Products) scheme is to be extended to all export goods from 1st January 2021.
RoDTEP Scheme
The RoDTEP Scheme was launched in 2020 to boost India’s exports in the International markets.
RoDTEP is a scheme for the Exporters to make Indian products cost-competitive and create a level playing field for the exporters in the Global Market.
Under the scheme, a mechanism will be created for reimbursement of levies, taxes or duties at central, state and local levels. Prior to the scheme, the reimbursements were not done under any mechanism but were incurred at the manufacturing and distribution process.
RoDTEP Scheme has replaced the current Merchandise Exports from India Scheme (MEIS), which was not in compliance with WTO norms and rules.
The new RoDTEP scheme is fully WTO compliant.
The RoDTEP Scheme will coordinate with the WTO to reduce the post production transaction costs for the exporters. In order to achieve this, the RoDTEP Scheme implementation measures must provide production-oriented processes. This is in accordance to WTO rules. This will help to boost the production of MSMEs.
Also, under the scheme the indirect taxes are consumed in production process, which is also consistent with WTO.
It will also boost employment generation.
Scheme is to be implemented with end to end digitalization.
Merchandise Exports from India Scheme (MEIS)
This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and was in existence till 2020.
Merchandise Exports from India Scheme (MEIS) was introduced to offset infrastructural inefficiencies and associated costs involved in exporting goods which are produced in India.
The MEIS covered almost 5000 goods notified for the purpose of the scheme.
