Scheme for Remission of Duties and Taxes on Exported Products (RODTEP) was launched in 2020 from 1st January 2021 through the ministry of commerce and industry Govt. of India. This scheme is applicable to the export of products but not services. This scheme was enforced to repeal and reduce taxes for exported products and thereby encouraging the conditions of exported and increasing the amount of export in the country. This scheme has replaced Merchandise export incentive schemes (MIES).
The RODTEP scheme was launched with the view
This scheme is applicable to all the sectors involved in the export of goods irrespective of their turnover. Provided the country of manufacturing of the exported goods should be in India. However, labour – intensive industries should be given more priority over other sectors. Goods exported through e-commerce platforms are also eligible under this scheme.
The rebate under this scheme would be claimed as a percentage of freight on board (FOB) value of exports. The reimbursement rate of taxes and duties will vary from 0.01% to 4.3% (maximum limit). Items such as gems & jewellery would have a refund rate of 0.01% whereas items such as shirt fabrics are at 4.3%. sectors such as steel, pharma, and chemicals are kept out of the RoDTEP scheme. Employment Oriented Sectors like Marine, Agriculture, Leather, Gems & Jewellery, etc. are covered under the Scheme. Other sectors like Automobiles, Plastics, Electrical / Electronics, Machinery, etc. also get support. The entire valve chain of textiles also gets covered through RoDTEP & RoSCTL. Identified export sectors and rates under RoDTEP cover 8555 tariff lines in addition to similar support being extended to apparel and made-ups exports under the RoSCTL scheme of the Ministry of Textiles.
Author- Adv.Shivam Kumar
Legel and content Executive, Taxblock India Pvt. Ltd