Central Idea
- In light of a continuous seven-month decline in goods exports until August, the government has taken action to bolster outbound shipments.
- The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme’s applicability has been extended for nine more months, now in effect until June 30, 2024.
About RoDTEP Scheme
| Objective | To refund central, state, and local duties or taxes on exported products.
The rebate does not apply to duties and taxes that have already been exempted, remitted, or credited. |
| Launch Date | Introduced in January 2021.
Replacement for the Merchandise Export Scheme, which was deemed non-compliant with WTO Rules. |
| Rates of Tax Refund | Tax refund rates under RoDTEP vary from 0.5% to 4.3% across different sectors. |
| Claim Process | Exporters can claim the rebate as a percentage of the Freight On Board (FOB) value of their exports. |
| Issuance of Rebates | Rebates are issued in the form of transferable duty credits or electronic scrips (e-scrips). |
| Significance of the Scheme | Enhances the competitiveness of Indian products in global markets by refunding various taxes.
Expected to have a substantial impact on India’s trade volumes, export figures, and competitiveness. Enables Indian exporters to meet international export standards and access GST refunds efficiently. |
