What is RoDTEP?

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is a new scheme that has been introduced by the Government of India to replace the Merchandise Exports from India Scheme (MEIS). The scheme aims to refund taxes and duties paid by exporters such as VAT on fuel used in transportation, Mandi tax, Duty on electricity used during manufacturing, etc. which were not being refunded so far.

Key Features

• Rebate of Central, State and Local duties/taxes/levies which are not refunded under any other duty remission schemes
• Benefit is available in the form of a transferable duty credit/electronic scrip which will be maintained in an electronic ledger
• The rebate would be claimed as a percentage of the Freight On Board (FOB) value of exports
• The scheme covers over 8,555 tariff lines, accounting for about 65% of India's exports

Benefits for MSMEs

The RoDTEP scheme is particularly beneficial for MSMEs as it helps in:

• Reducing the export price and making exports more competitive
• Improving cash flow by providing timely rebates
• Ensuring zero-rating of exports by removing hidden taxes
• Simplifying the export process with electronic credit system