RoDTEP Scheme

The Cabinet Committee on Economic Affairs (CCEA) recently gave approval for the RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme.

Status of India’s Exports

India faced a decline in exports for 6 months in a row in January. While the exports in the 2018-19 period was worth 331 billion USD, the April to January period recorded only 265.26 billion USD worth of exports- a decline of 1.93%. The COVID-19 has added to the uncertainties in the economy.

About the Scheme

The scheme was introduced last year at a cost of 50,000 crore INR. It seeks to incentivise the exports by reimbursing the taxes and duties paid by the exporters. Certain taxes and duties that don’t get reimbursed under any of the current mechanisms- like the coal cess, mandi tax, value added tax, electricity dues and fuel for transportation are covered by the scheme.

MEIS

The RoDTEP scheme was introduced to phase out the MEIS or Merchandise Export from India scheme. The MEIS was found to be violating the WTO norms due to its focus on exports. It was introduced under the Foreign Trade Policy of India.