What is the News ?

The RoDTEP scheme, which initially lasted until September 30, 2023, will now continue until June 30, 2024, with the same rates for products that are already being exported.

Facts About:

• The RoDTEP Scheme, officially known as the Scheme for Remission of Duties and Taxes on Exported Products, plays a crucial role in helping Indian exporters.
• It became operational on January 1, 2021, replacing the earlier export incentive program called Merchandise Exports from India (MEIS).
• This change was necessary because the World Trade Organization (WTO) found that the MEIS scheme violated WTO rules by providing export subsidies for a wide range of goods.
• How it Works: Under the RoDTEP Scheme, exporters receive a rebate based on a percentage of the value of their exports (known as FOB or Freight On Board value).

This rebate is given in the form of a transferable duty credit/electronic scrip (e-scrip), and the details of these credits are maintained digitally by the Central Board of Indirect Taxes and Customs (CBIC).

The RoDTEP Committee, which operates within the Department of Revenue, is responsible for reviewing and recommending the maximum rates for different export sectors under this scheme.

• Main Objective: The primary goal of the RoDTEP Scheme is to offer comprehensive support to exporters by refunding the duties and taxes incurred during the production and distribution of exported products.

Importantly, it covers taxes, duties, and levies imposed at the central, state, and local levels, which are not reimbursed through other existing mechanisms.

• Financial Support: In the fiscal year 2023-24, the Indian Government has allocated a substantial budget of Rs. 15,070 crores to support the RoDTEP Scheme.
• Engaging with Stakeholders: The RoDTEP Committee has recently started its work by collaborating with Export Promotion Councils (EPCs) and Chambers of Commerce.