Remission of Duties and Taxes on Export Products (RoDTEP)
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Question 1
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With reference to the Remission of Duties and Taxes on Export Products(RoDTEP), consider the following statements:
1. It ensures that the exporters receive the refunds on the embedded taxes and duties previously non-recoverable.
2. Refunds under the scheme are provided in the form of transferable duty credit scrips maintained electronically.
3. Re-exported products and Manufacturer exporters are eligible for the benefits of this scheme.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Explanation Statement 1 is correct: RoDTEP stands for Remission of Duties and Taxes on Export Products. It is a new scheme applicable from 1 January 2021. It replaced the existing MEIS (Merchandise Exports from India Scheme). The scheme ensures that the exporters receive the refunds on the embedded taxes and duties previously non-recoverable. It was introduced with the intention to boost exports which were relatively poor in volume previously.
Statement 2 is correct: Mandi tax, VAT, Coal cess, Central Excise duty on fuel etc. will be refunded under Remission of Duties and Taxes on Export Products(RoDTEP). All the items under the MEIS and the RoSTCL (Rebate of State and Central Taxes and Levies) are under the purview of the RoDTEP Scheme. The refund will be issued in the form of transferable electronic scrips. These duty credits will be maintained and tracked through an electronic ledger.
Statement 3 is not correct:While manufacturer exporters and merchant exporters (traders) are eligible under the RoDTEP scheme, re-exported products are not.
As per scheme provisions: . All sectors, including the textile sector, may benefit from RoDTEP. . Labor-intensive sectors that earlier received MEIS benefits are prioritized. . There is no turnover threshold for eligibility. . However, re-exported products are excluded from the scheme’s coverage.
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