RoDTEP, stands for Remission of Duties and Taxes on Exported Products, came into effect on January 1, 2021, replacing the former Merchandise Exports from India Scheme (MEIS). This initiative is designed to guarantee that exporters receive reimbursements for embedded taxes and duties that were previously unrecoverable. The scheme was introduced to stimulate export growth, particularly addressing the historically low volume of exports.

The World Trade Organization (WTO) witnessed a challenge from the United States against India’s primary export subsidy schemes, alleging adverse effects on American workers. In response, a WTO dispute panel ruled unfavorably for India, declaring that the export subsidy programs offered by the Indian government contravened WTO norms. The panel recommended the withdrawal of these subsidy programs. In light of this, the RoDTEP Scheme was introduced to ensure India’s adherence to WTO regulations.

The implementation of the digital platform expedites the clearance process significantly. The verification of exporters’ records will leverage an IT-based risk management system, ensuring both the speed and accuracy of transaction processing.

The RoDTEP Scheme extends its benefits across all sectors, including textiles, with a priority for labor-intensive sectors already benefiting from the MEIS Scheme. Both manufacturer exporters and merchant exporters (traders) qualify for the advantages of this scheme. Notably, there is no specified turnover threshold for RoDTEP eligibility.

However, products intended for re-exportation are ineligible under this scheme. To qualify for RoDTEP benefits, the exported products must originate from India. This includes eligibility for Special Economic Zone Units and Export Oriented Units.

Even for goods exported through courier services on e-commerce platforms, the RoDTEP scheme is applicable, reflecting its inclusive reach across various export channels.

RoDTEP encompasses all sectors, including textiles, ensuring comprehensive coverage and uniformity. Furthermore, the establishment of a dedicated committee is planned to determine the phased introduction of the scheme across different sectors, specifying the extent of benefits for each sector and addressing related matters.

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