RoDTEP Scheme Guidelines and Rates to boost exports

Government of India Notifies RoDTEP Scheme Guidelines and Rates Scheme to boost Indian exports & competitiveness

The Government of India has notified RoDTEP Scheme Guidelines and Rates (Remission of Duties and Taxes on Exported Products) vide its Notification No. 19/2015-2020 Date 17.08.20201 issued by Ministry of Commerce and Industry. The scheme for zero rating of exports will boost Indian exports & competitiveness in the global markets. The rates of RoDTEP will cover 8555 tariff lines.

In a way to achieve Aatmanirbhar Bharat vision Government of India is leaving no stone unturned to support domestic industry and make it more competitive in the international markets.

Remission of Duties and Taxes on Exported Products (RoDTEP) is one such reform, based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.

Sectors like Marine, Agriculture, Leather, Gems & Jewellery, Automobile, Plastics, Electrical / Electronics, Machinery get the benefits of Scheme. Rates of RoDTEP to cover 8555 tariff lines.

Scheme’s objective is to refund, currently un-refunded:

–           Duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product, and

– Such indirect Duties/ taxes/ levies in respect of distribution of exported products.

It may be noted that rebate under the Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.

RoDTEP support will be available to eligible exporters at a notified rate as a percentage of Freight On Board (FOB) value. Rebate on certain export products will also be subject to value cap per unit of the exported product.

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 RoSCTL scheme of Ministry of Textiles.