RoDTEP Scheme: India notifies Duty Rebate Rates

Centre government notified the rates and guidelines for Remission of Duties and Taxes on Exported Products (RoDTEP) export incentive scheme.

Key Points

  • This scheme for zero rating of exports will help in boosting India’s exports and competitiveness across the global markets.
  • Rates under RoDTEP scheme for different sectors have been set as 0.5 per cent, 2.5 per cent and 4 per cent.
  • These rates will be applicable to 8,555 tariff lines.
  • It will come into effect from January 1, 2021.

Principle of RoDTEP Scheme

RoDTEP scheme works on the principle that “taxes and duties should not be exported, while taxes and levies on exported products should either be exempted or remitted to exporters”.

How taxes are charged under scheme?

Under the RoDTEP scheme, duties, taxes and levies are charged on exported products at state and local levels. It refunds the prior stage cumulative indirect taxes on goods as well as services used in production of the exported product and their distribution. Rebate will not apply to duties and taxes that are already exempted, remitted or credited. RoDTEP support will be available for eligible exporters as a percentage of Freight on Board (FOB) value. Rebate on some export products will be subject to value cap per unit of exported product.

Outlay of the scheme

Ministry of Finance will finalise the overall outlay of the RoDTEP scheme in consultation with the Department of Commerce. Ministry will take into account all the factors before finalising it.

Who will implement the scheme?

This scheme will be implemented by Customs with the help of simplified IT System. Ministry will issue rebate in the form of transferable duty credit or electronic scrip (e-scrip). It will be maintained by Central Board of Indirect Taxes and Customs (CBIC) in an electronic ledger.

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