The Government has extended the benefits of the Remission of Duties or Taxes on Export Products (RoDTEP) scheme for an additional year. RoDTEP, introduced on January 1, 2021, is a scheme aimed at remitting and reducing taxes on exported products to boost exports in India. It is administered by the Department of Revenue, Ministry of Finance. The scheme allows exporters to claim reimbursement for taxes, duties, and levies not refunded through other mechanisms. RoDTEP replaces the Merchandise Export Incentive Schemes (MEIS) and ensures compliance with WTO rules while supporting Indian commodity exports. Eligibility includes all sectors involved in exporting goods manufactured in India, including e-commerce platforms. Exporters receive rebates based on the Freight on Board (FOB) value of exports.
Facts/Terms for UPSC Prelims
- WTO-Compliant Scheme: This term refers to schemes or policies that adhere to the regulations of the World Trade Organization (WTO) to avoid trade disputes and maintain fair international trade practices.
- Merchandise Export Incentive Schemes (MEIS): MEIS was a previous export incentive scheme in India that aimed to promote merchandise exports by providing incentives to exporters. It has been replaced by the RoDTEP scheme.
- Freight on Board (FOB): FOB is an international trade term that specifies the point at which ownership and responsibility for goods transfer from the seller to the buyer. It’s crucial in determining when the buyer assumes risks and costs during transportation.
- Central Board of Indirect Taxes and Customs (CBIC): CBIC is the central authority in India responsible for administering indirect taxes, customs, and excise duties. It plays a vital role in implementing and managing schemes like RoDTEP.
- E-scrips: E-scrips are electronic certificates with monetary value issued under the RoDTEP scheme. These certificates can be used to pay basic customs duty on imported goods or transferred electronically to other parties involved in trade.