RoDTEP Scheme : In News
The tea industry has sought higher rates under the RoDTEP scheme to make exports more competitive in overseas markets.
- RoDTEP Scheme is a flagship export promotion scheme of the Union Ministry of Commerce and Industry.
- The WTO-compliant scheme aims to refund to the exporters the embedded central, state, and local duties and taxes paid on inputs that have so far not been refunded or rebated.
- RoDTEP was announced in September 2019 with the aim of boosting domestic exports and replacing the export incentive scheme, Merchandise Exports from India (MEIS) scheme.
- This came after a World Trade Organization (WTO) ruling stated that the MEIS scheme violated the provisions of the trade agency as it was providing export subsidies for a several range of goods.
- The government decided to extend the benefit of the RoDTEP scheme to all goods, with effect from January 1, 2021, according to a notification by the Directorate General of Foreign Trade (DGFT).
- By providing support to crucial export sectors, the government aims to not only enhance their competitiveness but also create employment opportunities and contribute to overall economic growth, aligning with the vision of building an Aatmanirbhar Bharat.
- This scheme is open to both manufacturers and merchant exporters, without any threshold of turnover.
- The most important condition is that such goods should have been directly exported by such a person.
- The RoDTEP scheme covers physical exports as well as outbound shipments of services from India. Service providers can also claim refunds on applicable hidden levies.
