Remission of Duties and Taxes on Exported Products (RoDTEP)

Context:

The Government of India has restored full RoDTEP rates and value caps, withdrawing the earlier 50% restriction, to support exporters facing rising freight costs and logistics disruptions due to geopolitical tensions in West Asia.

What is RoDTEP Scheme?

The Remission of Duties and Taxes on Exported Products (RoDTEP) is a flagship export promotion scheme that provides refund of embedded taxes and duties that are not reimbursed under any other mechanism.

Core Principle:

Ensure that taxes are not exported, thereby improving the global competitiveness of Indian goods.

Launch and Administration

• Launched on: January 1, 2021
• Replaced: Merchandise Exports from India Scheme (MEIS)
• Ministry: Ministry of Commerce and Industry

Objectives of RoDTEP

• Refund un-rebated taxes and duties
• Reduce cost burden on exporters
• Enhance export competitiveness
• Boost India’s export volume and value

Key Features of RoDTEP

1. Comprehensive Coverage

• Covers 10,000+ export items
• Includes sectors such as:
  • Agriculture
  • Marine products
  • Leather
  • Gems and jewellery

2. Digital Transferable Scrips

• Benefits provided as duty credit scrips
• Maintained in an electronic ledger by Customs
• Fully transferable, allowing flexibility

3. WTO Compliance

• Based on remission of actual taxes, not subsidies
• Ensures compliance with World Trade Organization norms

4. Automatic Processing

• Rebate calculated as a percentage of FOB (Free on Board) value
• Processed automatically upon filing of shipping bill

5. Inclusion of Local and Embedded Taxes

Covers taxes not refunded elsewhere, such as:

• Mandi tax
• VAT on fuel used in transportation
• Electricity duty