The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was set forth by the Government of India (GOI) on 14 September 2019 with an aim to encourage exports. It was issued to allow reimbursement of taxes and duties, which aren’t exempted or refunded through any other scheme in line with the World Trade Organization (WTO) norms.
The RoDTEP scheme is a result of a complaint filed by the USA against India at the WTO. The USA delivered its concern over the export subsidies of GOI through the MEIS Scheme that gave undue benefits to Indian exporters and they claimed it to be against the WTO norms. The case went in favor of the USA at WTO, this indicated a red flag to India’s MEIS Scheme and the requirement to come back with a new WTO compliant scheme to aid the Indian exporters. Thus, the Budget Speech delivered by the Finance Minister on 1st February 2020 declared that a scheme that’ll focus on remission of duties and taxes on export products would be instigated. Consequently, the RoDTEP Scheme sought approvals from the Union Cabinet on 13th March 2020, was implemented from 1st January 2021, and will be adhered to until 2025.