Know about RoDTEP Scheme in India and how exporters can benefit from it?
The RoDTEP Scheme (Remission of Duties and Taxes on Exported Products) is a new scheme introduced by the Indian government to provide a level playing field to exporters and make Indian products more competitive in the global market. This scheme was launched on 1st January 2021, replacing the MEIS (Merchandise Export Incentive Scheme).
Under the RoDTEP Scheme, eligible exporters can claim a refund of duties and taxes paid on inputs used in the manufacturing and export of products. This includes central and state taxes such as GST, excise duty, and customs duty. The scheme aims to eliminate the cascading effect of taxes and duties and reduce the cost of exported products.
To be eligible for the RoDTEP Scheme, exporters must meet certain conditions, including:
Must have an active Import Export Code (IEC) issued by the Directorate General of Foreign Trade (DGFT).
Must be registered with the relevant export promotion council or commodity board.
Must declare the exports made in the shipping bill as per the customs provisions.
Must comply with the relevant laws and regulations related to the scheme.
To claim the RoDTEP benefits, exporters must submit a declaration with the relevant customs authorities. The amount of refund will be calculated based on the rates fixed by the RoDTEP Committee for each product category.
The RoDTEP Scheme is applicable to all goods exported from India, except for those covered under certain other schemes such as SEZ and EOU. The scheme is also applicable to exports made through e-commerce platforms.
The benefits of the RoDTEP Scheme for exporters are numerous. It reduces the cost of exported products and makes them more competitive in the global market. This, in turn, can lead to increased exports and foreign exchange earnings for the country. Additionally, the scheme promotes ease of doing business for exporters and encourages them to invest in new technologies and processes.
The RoDTEP Scheme is a game-changer for exporters in India. It offers a unique opportunity for eligible exporters to reduce their costs and increase their competitiveness in the global market. We encourage all eligible exporters to take advantage of this scheme and help India achieve its vision of becoming a global manufacturing hub.