Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme

/ UPSC CURRENT AFFAIRS / By
remission of duties and taxes on exported products rodtep
  • Introduced: Foreign Trade Policy 2015-20 (effective from Jan 1, 2021).
  • Administered by: Department of Revenue, Ministry of Finance.
  • Replaced: MEIS (challenged at WTO by US).
  • Objective: Refund unrebated/embedded taxes, duties & levies on exported goods; encourage exports; WTO-compliant.
  • Platform: Fully digital, transparent, IT-based with risk management.

Tax Reimbursement

  • Refunds indirect taxes/duties not otherwise refunded at central, state, local levels.
  • Covers both direct & prior-stage cumulative indirect taxes.
  • Rebate as % of FOB value of exports.
  • Refund issued as transferable e-scrips in CBIC’s digital ledger.
  • e-scrips usable for basic customs duty payment; transferable to others.

Eligibility

  • All sectors covered; labor-intensive sectors prioritized.
  • Manufacturer exporters & merchant exporters eligible.
  • No turnover threshold.
  • Goods must be of Indian origin.
  • SEZ & EOU units eligible.
  • Includes e-commerce exports via courier.
  • Re-exports not eligible.

Features

  • WTO-compliant, transparent, digital monitoring & audit.
  • Incentivizes exports by lowering hidden tax burden.
  • Extended till March 31, 2026.
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