Why in the News?
The Government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme until March 31, 2026, providing relief and policy certainty to exporters.
About the RoDTEP Scheme:
- Launch & Context: Introduced on 1 January 2021 under the Foreign Trade Policy 2015–20, replacing the Merchandise Exports from India Scheme (MEIS) after India lost a case at the World Trade Organisation (WTO).
- Administration: Managed by the Department of Revenue, Ministry of Finance, and implemented via the Central Board of Indirect Taxes and Customs (CBIC).
- Objective: Refund hidden domestic taxes/duties on exports to ensure goods leave the country free of embedded levies, enhancing competitiveness and ensuring WTO compliance.
- Coverage: Applicable to all Indian exporters (manufacturers and merchants) including SEZs, Export Oriented Units (EOUs), Advance Authorisation (AA) holders, and Domestic Tariff Area (DTA) units.
- Timeline: Initially valid till 5 February 2025, restored in May 2025 for AA, EOU, and SEZ exports after industry lobbying, and now extended till 31 March 2026.
Key Features:
- Hidden Taxes Covered: Refunds duties such as electricity duty, mandi tax, fuel charges in transport, and local cesses.
- Rebate Mechanism: Calculated as a percentage of the Free on Board (FOB) value of exports.
- Refund Mode: Benefits disbursed as electronic scrips (e-scrips), stored in CBIC’s digital ledger.
- Use of E-Scrips: Can be utilised to pay basic customs duty or transferred to other importers.
- Sectoral Priority: Focus on labour-intensive industries like textiles, handicrafts, leather, etc.
- Exclusion: Re-exported goods are not eligible under RoDTEP.
- Budgetary Control: Operates strictly within annual budget allocations, as clarified by DGFT.
- Policy Certainty: Extension till 2026 ensures stability for exporters facing global trade headwinds.
| [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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