Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme: Recently, in a move to enhance India’s export competitiveness, the Ministry of Commerce and Industry announced two key policy decisions: the restoration of the RoDTEP scheme for select exporters and the removal of port and certification restrictions on the export of leather products.
o It aims to reimburse taxes and duties embedded in exported goods that are not otherwise refunded, encouraging export growth by reducing the tax burden on exporters.
o Administered by the Department of Revenue, Ministry of Finance.
o RoDTEP is WTO-compliant and replaces the earlier Merchandise Export Incentive Scheme (MEIS), which was ruled against by the WTO following a US challenge.
o The scheme reimburses various central, state, and local taxes incurred during manufacture and distribution of exported goods, covering both direct and cumulative indirect taxes.
o It applies to all exporters of goods manufactured in India, including merchant and manufacturer exporters, Special Economic Zone (SEZ) units, Export-Oriented Units (EOUs), and exports via e-commerce platforms. However, re-exported products are excluded.
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