Updated on January 16, 2025 11:13:03 AM
Remission of duties and taxes on exported products, RoDTEP is a scheme introduced by GOI on 1st of Jan 2021 to replace the MEIS scheme. The objective of RoDTEP was to remit hidden taxes on exported goods which wasn't covered under the MEIS scheme. The scheme provides rebates from all hidden taxes levied by the state and central govt. on the product during its manufacturing process.
Exporters of various products can take benefits of this scheme as now they don't have to bear these hidden taxes on the exported products. The scheme is expected to give a push to the Indian economy & make Indian products more competitive in the global market by reducing cost.
RoDTEP is an abbreviation for Remission of Duties or Taxes on Export-related Products that was recently introduced by the Indian Government. The program was announced in changes to Foreign Trade Policy 2015-20 and was effective for exports from January 1, 2021. The main purpose of this program is to offset taxes and duties on exported items that aren't compensated, credited, or refunded in any manner and are incorporated into exports of the products.
In this program, the government will reimburse for all hidden central local, state, and central taxes, duties, and levies that are associated with exports that were not reimbursed by any other program. This is not just the direct costs of exporters but also the indirect taxes that have been accumulated for goods that were incurred at earlier stages.
The RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme provides a range of significant benefits aimed at increasing export competitiveness.
Below are the eligibility criteria for RoDTEP scheme:
Remission of duties and taxes on export products covers various export products under its umbrella. The products are clubbed under four categories.
These are the following documents required for exporters to avail the benefits of RoDTEP scheme.
The following categories and products are not eligible for discounts under the RoDTEP scheme:
The RoDTEP scheme gives exporters who are eligible for a rebate that will be given in a set amount as a percent of the value of the Free On Board (FOB) value as well as a value limit per unit of export product if required. The scheme applies to items that are classified under the 8-digit notified HSC Code. However, some export products could also stipulate the amount of the rebate to be fixed per unit. The amount of rebate is contingent on the acceptance of sales profits within the timeframe specified under the Foreign Exchange Management Act of 1999. If this requirement isn't satisfied this rebate is regarded as if it was never given. It is important to remember that the rebate isn't dependent on the realization of export profits at the point when the rebate is given.
On August 17, 2021, the Central Government announced the RoDTEP scheme rates and guidelines. The notified rates under the RoDTEP scheme for different sectors are 0.5%, 1.4%, 2.4%, and 4%. However, the government has yet to announce a defined amount of rebate per unit for specific export items.
The Merchandise export from India Scheme is used to facilitate incentives to the exporters in the case of infrastructural and any cost inefficiency irrespective of WTO guidelines for international exports. But in 2021 GOI introduced a new scheme to boost the efficiency of the export industry of India.
MEIS vs RoDTEP
| MEIS | RoDTEP |
|---|---|
| Applicable for the export of goods and merchandise exports | Applicable for export of goods that are not covered under any other schemes |
| Non-compliant with the rules of world trade organization | RoDTEP scheme follows all the financial guidelines of WTO |
| Rebate of 2-5% of the FOB export value | Rebate ranges from 0.5-4.3% of the FOB export value |
| Refunds are diConclusionsbursed in the form of physical transferable scrips. | Rebates are disbursed in the form of transferable credit or electronic scrips. |
The RoDTEP scheme is a significant step towards boosting the efficiency of the Indian export industry. The scheme is expected to increase the competitiveness of Indian products in the global market and provide benefits to all sectors, with labor-intensive sectors given priority. The scheme is WTO compliant and provides rebates on hidden and direct taxes, giving a competitive advantage to exporters at the global level.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
.svg)
RoDTEP is a rebate incentive scheme,introduced by GOI in compliance with WTO guidelines. Under this scheme exporters can get rebate on direct or indirect taxes on export products.
The products are classified into four categories under this scheme
You can apply for with Professional Utilities in just 3 simple steps
To claim benefits under this scheme exporters are required to apply with DGFT.
Speak Directly to our Expert Today
Reliable
Affordable
Assured
Call us on
+91 9821113117
[Mon - Sat, 10am - 7pm]
Write to us
809, 8th Floor, Madhuban Building,
Nehru Place, New Delhi - 110019
Reliable
Affordable
Assurity
They've been very helpful in our registration with ICEGATE. It was a small thing with a small amount paid which somehow escalated to a very painful procedure. Never did they say "You've only paid so much. It's too much effort for us.".
Very pleased with their service. Prompt, professional and great communication. Definitely recommend. Special mention for Ms. Razia - she handled our case.
Professional Utilities is fully professional in their work, Rates are too low and genuine. Services and satisfaction are high so I highly recommended Professional Utilities.
They are one of the most genuine and reasonable people. I applied for lmpc certificate through them and they charged me a very nominal amount as compared to what other firms asked .
