{"id":5024,"date":"2020-03-18T11:00:57","date_gmt":"2020-03-18T05:30:57","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5024"},"modified":"2020-03-18T11:09:56","modified_gmt":"2020-03-18T05:39:56","slug":"union-cabinet-approves-rodtep-scheme","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/union-cabinet-approves-rodtep-scheme\/","title":{"rendered":"Union Cabinet Approves RoDTEP Scheme to Boost Exports"},"content":{"rendered":"\n<p>The Union Cabinet on 13th March\n2020 approved the introduction of a new export scheme called <strong>Remission of Duties or Taxes on Export\nProducts (RoDTEP).<\/strong> The approval came from the Cabinet Committee on Economic\nAffairs, chaired by Prime Minister Narendra Modi. The said scheme will replace\nthe current <strong>Merchandise Export from\nIndia Scheme (MEIS)<\/strong> in a phased manner. Earlier World Trade Organization\n(WTO) had declared that the MEIS scheme was violating global trade rules. <\/p>\n\n\n\n<p>&nbsp;The RoDTEP scheme will benefit exporters as it\nwill allow them to reimburse all taxes and duties paid by them like value-added\ntax, electricity duties and the fuel used for transportation, which is not\ngetting refunded under any other existing scheme.<\/p>\n\n\n\n<p><strong>While addressing the reporters, Commerce &amp; Industry Minister Piyush\nGoyal said,<\/strong><\/p>\n\n\n\n<div class=\"shadow1\">&#8220;Whatever taxes, or duties or local levies imposed by the Centre, State or local governments that are not getting refunded through any other scheme, will be done through RoDTEP in a way that is compliant with the World Trade Organization (WTO) norms.&#8221;<\/div>\n\n\n\n<p>Introduction of RoDTEP scheme<sup><a href=\"https:\/\/dgft.gov.in\/sites\/default\/files\/RoDTEP.pdf\">[1]<\/a><\/sup> is expected to boost the domestic industry and Indian exports providing equal opportunities for Indian producers in the International market. Under the newly introduced RoDTEP scheme, an inter-ministerial committee will determine the rates and items for which the reimbursement of taxes and duties would be offered. Moreover, in an effort to promote Digital India, the refund to the exporters under the said scheme will be issued in the form of transferable duty credit\/ electronic scrip, which will be maintained in an electronic ledger. The scheme will be implemented with end to end digitization. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Features of RoDTEP Scheme<\/h2>\n\n\n\n<ul><li>Certain taxes\/duties\/levies such as a\nvalue-added tax on fuel used in transportation, mandi tax and duty on\nelectricity used for manufacturing etc. are not refunded for exports. However,\nnow all these mentioned taxes\/duties would be covered for reimbursement under\nthe RoDTEP Scheme.<\/li><li>It is the Department of Commerce (DOC) that will\ndecide the sequence of introduction of the scheme across sectors,\nprioritization of the sectors to be covered. Moreover, the degree of benefit to\nbe given on various items within the rates set by the Committee will also be\nnotified by the Department of Commerce (DOC).<\/li><li>The RoDTEP rates will be decided after industry\nconsultation, and the process will take about six-eight months.<\/li><li>To physically substantiate the records of the\nexporters, a monitoring and audit mechanism, with an Information Technology\nbased Risk Management System (RMS) would be used.<\/li><li>When the rates under the RoDTEP scheme are\nannounced for a tariff line\/ item, the MEIS scheme benefits on such tariff\nline\/ item will be discontinued.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Take Away<\/h2>\n\n\n\n<p>Cabinet approved the introduction of RoDTEP scheme with an aim to refund un-refunded taxes or duties\/ levies that are not exempted or rebated at present by any other mechanism. Introduction of RoDTEP scheme is expected to boost the domestic industry and Indian exports providing equal opportunities for Indian producers in the International market.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/banking-regulation-amendment-bill-2020-introduced-in-lok-sabha\/\">FM Introduces Banking Regulation (Amendment) Bill, 2020<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/RoDTEP.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">RoDTEP<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet on 13th March 2020 approved the introduction of a new export scheme called Remission of Duties or Taxes on Export Products (RoDTEP). The approval came from the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi. The said scheme will replace the current Merchandise Export from India Scheme (MEIS) in [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":5025,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[405],"acf":{"service_id":"215"},"authorName":"Shubham Chauhan","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/shubham-chauhan.jpg","authorDescription":"A passionate legal content writer, a nature enthusiast, an avid reader, and a part-time thinker. By means of conducting in-depth research on industry related topics, Shubham often builds flawless and intelligible legal content for populace from all walks of life.","postViews":5088,"readingTime":2,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5024"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5024"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5024\/revisions"}],"predecessor-version":[{"id":5149,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5024\/revisions\/5149"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5025"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}