RoDTEP Scheme Expired

GS 3 – Economy

Context: The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, which provided crucial support to exporters operating under advance authorization, export-oriented units, and special economic zones schemes, expired on December 31, 2024. With no clear indication of an extension, exporters now face heightened uncertainty.

• Introduced in January 2021, the RoDTEP scheme replaced the existing Merchandise Exports from India Scheme (MEIS).

Purpose:

1. To ensure exporters receive refunds on embedded taxes and duties that were previously non-recoverable.
2. To boost exports, which were previously low in volume.

Need for the Scheme:

• The US had challenged India’s key export subsidy schemes in the WTO.
• A WTO dispute panel ruled that India’s export subsidy programs violated WTO trade norms.
• The RoDTEP scheme ensures that Indian exporters are supported while remaining WTO-compliant.

Eligibility Criteria:

• All sectors, including textiles, can avail of the benefits under the RoDTEP Scheme.
• Manufacturer exporters and merchant exporters (traders).
• Special Economic Zone (SEZ) units and Export Oriented Units (EOUs).
• Goods exported via courier through e-commerce platforms.
• There is no particular turnover threshold to claim benefits under the scheme.
• Re-exported products are not eligible.
• Exported products must have the country of origin as India.