Why in the News?
To boost India’s export strength, the government has restored Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme benefits for eligible exports starting June 1, 2025.
Details of the Latest Update:
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About the RoDTEP Scheme:
- Launch: It started on January 1, 2021, as part of the Foreign Trade Policy 2015–20.
- Objective: It helps exporters get refunds for hidden taxes and duties that are not refunded under other schemes.
- Examples of Hidden Taxes: These include taxes like electricity duty, mandi tax, and fuel charges during transport.
- Why it was introduced: RoDTEP replaced the earlier Merchandise Export Incentive Schemes (MIES) after India lost a case at the World Trade Organisation (WTO).
- Global Compliance: The scheme is WTO-compliant, following the rule that exported goods should not carry domestic taxes.
- Administered by: It is managed by the Department of Revenue under the Ministry of Finance.
Eligibility under RoDTEP:
- Who can apply: All Indian exporters — whether manufacturers or merchant exporters — are eligible.
- Eligible exports: Exports from SEZs, EOUs, and e-commerce platforms are also covered.
- Not Eligible: Re-exported goods are not eligible for benefits.
- Sector Focus: The scheme gives priority to labour-intensive sectors that earlier benefitted from MEIS.
How the refund works:
- Rebate Calculation: The refund is given as a percentage of the export value (Free on Board value).
- Mode of Refund: The benefit comes in the form of e-scrips, which are stored in a digital ledger by the Central Board of Indirect Taxes and Customs (CBIC).
- Usage of E-Scrips: These e-scrips can be used to pay basic customs duty or be transferred to other importers.
| [UPSC 2020] With reference to the international trade of India at present, which of the following statements is/are correct?
1. India’s merchandise exports are less than its merchandise imports. 2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years. 3. India’s exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below: Options: (a) 1 and 2 only (b) 2 and 4 only (c) 3 only (d) 1, 3 and 4 only* |
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