REMISSION OF
DUTIES AND
TAXES ON
EXPORTED
PRODUCTS
BOOSTING INDIAN EXPORTS BY SIDDARTHA
1.
INTRODUCTION
• Applicable from 1st January 2021
• Replaces Merchandise India
Exports from India Scheme
• Ensures Exporters receive refunds
on embedded taxes and duties
previously non-recoverable.
• Introduced with an intention of
boosting exports.
• Enhances the Global
Competitiveness of Indian
Products.
• Provide Comprehensive support
to Exporters.
2. BACKGROUND
• US had challenged India’s key export
subsidy schemes in the WTO, claiming
them to harm the American workers.
• Dispute panel in the WTO ruled against
India, stating that the export subsidy
programmes that were provided by the
Government of India violated the
provisions of the trade body’s norms.
• This led to the birth of the RoDTEP
Scheme, so as to ensure that India stays
WTO-compliant.
3. FEATURES
• Refunds on previously non-
refundable duties and taxes like –
Electricity Duty, Municipal Taxes,
State Levies, Central Excise Duty on
Fuel etc.
• Ensures faster processing and
verification of claims through a
digital platform.
• Applicable to various sectors,
including textiles, agriculture, and
more.
• Both merchant exporters and
manufacturer exporters can benefit
from the scheme.
4. ELIGIBILITY
• All sectors, including the textiles sector.
• Labor-intensive sectors that enjoy benefits
under the MEIS Scheme will be given a priority.
• Manufacturer exporters and merchant
exporters (traders) are both eligible for the
benefits of this scheme.
• There is no particular turnover threshold to
claim the RoDTEP.
• Re-exported products are not eligible under
this scheme.
• To be eligible to avail the benefits of this
scheme, the exported products need to have
the country of origin as India.
• Special Economic Zone Units and Export
Oriented Units are also eligible to claim the
benefits under this scheme.
• Where goods have been exported via courier
through e-commerce platforms, RoDTEP
scheme applies to them as well.
5. EXECUTION
• The exporter should make a declaration of
the claim for RoDTEP in the shipping bill.
• Once the Export General Manifest (EGM) is
filed, the claim will be processed by the
Customs.
• After processing the claim, a scroll with all
individual Shipping Bills for the admissible
amount will be generated and available in
the users account at ICEGATE portal.
• The exporter should log in to the ICEGATE
portal and create a RoDTEP credit ledger
account.
• After the RoDTEP credit ledger account is
created, the exporters can log in to their
accounts and generate scrips by selecting
the relevant shipping bills.
• Once, the scrips are generated, the refund
will be credited and reflected in the
6. BENEFITS
• COMPREHENSIVE REFUNDS:
Refunds for previously non-
creditable duties and taxes.
• COST REDUCTION: Lowers overall
production costs by reimbursing
embedded taxes.
• ENHANCED COMPETITIVENESS:
Makes Indian products more
competitive globally by reducing
the tax burden.
• SIMPLIFIED COMPLIANCE:
Streamlined process through an
automated and digitalized
platform.
7. INITIATIVES
• Extension of RoDTEP Scheme
• Includes more sectors like Advance
Authorization,
Export Oriented Units and Special
Economic Zones
• Budgetary Allocation
• ₹15,070 crore allocated for FY 2024-25.
• Supports refunds for embedded taxes and
duties.
• Sector Specific Support
• Covers sectors like engineering, textiles,
chemicals, pharmaceuticals, and food
processing.
• Different remission rates for various sectors
to aid export activities.
• International Compliance
• Aligns with World Trade Organization (WTO)
norms.
8. CONCLUSION
• SUMMARY FOR KEY POINTS:
• RoDTEP aims to refund
embedded taxes to boost
exports.
• The scheme's digital processes
ensure faster and accurate
refunds.
• OVERALL IMPACT:
• Positive influence on India’s
export competitiveness.
• Encouragement for exporters to
take advantage of the scheme.
