RODTEP
RODTEP
The RoDTEP Scheme came into existence because the USA filed a complaint against India at the World Trade Organization (WTO). USA argued that export subsidies like the MEIS scheme given by GOI give undue benefits to Indian exporters and it is against the WTO rules. Consequently, India lost the case at WTO, and the ruling was in favour of the USA. It meant that now India had to stop the MEIS scheme and come up with a new WTO compliant scheme to help Indian exporters. Hence, the Finance Minister in her Budget Speech on February 2020 had announced that Scheme for Remission of duties and taxes on export products would be launched. Consequently, the RoDTEP Scheme was approved by the Union Cabinet on 13th March 2020 and it came in effect from 1st January 2021 and will be until 2025.
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What is RoDTEP Scheme?
RoDTEP (Remission of Duties of Taxes on Export Products) is a Scheme for the Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market. RoDTEP Scheme will replace the current MEIS scheme, which is not in compliance with WTO norms and rules. The new RoDTEP Scheme is fully WTO compliant scheme. It will 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.
We KELULAR provide RoDTEP scheme consultancy it will reimburse taxes/duties/levies at the central, state and local level, which are currently not being refunded To give a boost to employment generation in various sectors Items will be shifted in a phased manner from existing scheme MEIS to RoDTEP with proper monitoring & audit mechanism.
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 manufacturing industries. In line with the vision of the Prime Minister, various export oriented industries are being reformed and introduced to better mechanisms so as to increase their productivity, boost exports and contribute to the overall economy.
Comparison between MEIS and RoDTEP
| Detail | MEIS | RoDTEP |
| Schema of Incentive | Additional Incentive on Exports of goods | Refund of Indirect taxes on Inputs used in the manufacture of exported product which is not being currently reimbursed by any other existing schemes. |
| apart from other refunds and drawbacks | ||
| available on undertaking the said exports. | ||
| WTO Compliance | Non-Compliant with WTO trade norms | Compliant with WTO trade norms |
| Incentive Percentage | 2% to 5% of FOB value of Exports. | Product-based % – [To be notified later] |
| Mode of Issuance | Issuance in the form of transferable scrips (Hard copy/ downloadable) | Issuance in the form of transferable duty credit/ electronic scrip which will be maintained in electronic ledger. |
How can we (KELULAR) assist you to claim benefits under the RoDTEP scheme?
- We are the team of highly motivated DGFT professionals providing DGFT services over the years.
- Our goal is to stay ahead of the curve by being on the top of the news, comprehending new schemes and all the policies into them, realizing the benefits for exporters and importers, turning the policies into a simple form that is easily understandable to our clients.
- We have an experienced team working on understanding the foreign trade policies and finding the value it will add to our client base from various industries in the most effective manner.
- We assist our clients by updating them about the foreign trade policies so that they can understand the value addition policy will bring for their benefit and also guide them from document preparation to obtaining the License in hand under the RoDTEP scheme.
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