The Union Ministry of Finance has extended the duration of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) till 30 June 2024. The Scheme was to end on 30 September 2023. The government has extended the scheme to boost exports from India.
The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) is being implemented by the Central Board of Indirect Taxes and Customs (CBIC).
The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) is a duty remission scheme launched by the government of India on 1 January 2021, replacing the Merchandise Exports from India Scheme (MEIS).
Under the duty remission scheme, the exporters must first pay the necessary duties on the inputs needed for making the goods for export purposes. The government later reimburses the duties back to the exporter after the goods have been exported.
The Scheme creates a mechanism for a refund of the Central, State or Local duties/taxes/levies which are incurred in the process of manufacturing and distribution of exported products but are currently not refunded under any other duty remission scheme.
Major components of such taxes are electricity duty and VAT(Value Added Tax) on fuels used in transportation/distribution.
The Foreign Trade Policy 2023 has set a target of USD two trillion in exports by 2030.
It aims at USD one trillion-dollar merchandise exports and one trillion-dollar services exports by 2030.
India's export in 2022-23
India's overall exports in 2022-23 was USD 775.87 billion.
Of the total exports, the contribution of the merchandise export was USD 450.43 billion, and the Service sector export was USD 325.44 billion.
The Central Board of Indirect Taxes and Customs, earlier named the Central Board of Excise and Customs, comes under the Union Ministry of Finance.
CBIC helps in policy formulation regarding duties and levies and collection of Customs, Central Excise duties, Central Goods and Services Tax(CGST) and Integrated Goods and Service Tax (IGST).
It also deals with preventing smuggling and administering matters relating to Customs, Central Excise, Central Goods & Services Tax, IGST and Narcotics coming under CIBC's purview.
Chairperson: Vivek Johri
Headquarters: New Delhi