Government Restores Full RoDTEP Benefits | 25 Mar 2026

Source: HT 

The Ministry of Commerce and Industry has fully restored the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme benefits to buffer exporters against soaring logistics costs and geopolitical risks in West Asia. 

• Earlier, RoDTEP rates were halved, a move exporters sharply criticised amid global trade volatility. However, agriculture and food processing exports were exempted from the reduction. 

RoDTEP Scheme 

• About: Launched in 2021, it is a flagship export promotion scheme launched by the Ministry of Commerce and Industry. It replaced the earlier Merchandise Exports from India Scheme (MEIS). 
• Objective: It aims to reimburse embedded central, state, and local duties, taxes, and levies that are incurred during the manufacture and distribution of exported goods but are not refunded under any other existing mechanism (such as GST input tax credit or duty drawback). 
  • This enhances the cost competitiveness of Indian goods in international markets, creating a level playing field for exporters. 
• WTO Compliant: MEIS was challenged at the World Trade Organization (WTO) for being a direct subsidy. However, RoDTEP operates as a duty remission scheme rather than an incentive scheme, making it fully WTO-compliant. 
  • Remission is issued as transferable electronic duty credit scrips (e-scrips) that can be used to pay basic customs duty on imports. 
  • The rebate typically ranges from 0.5% to 4.3% of the Freight On Board (FOB) value of the exported goods, depending on the product sector. 
• Scope: Covers embedded taxes such as mandi tax, VAT on fuel, coal cess, central excise duty on fuel, electricity duty, and other local levies not refunded elsewhere. 
• Eligibility: Applies to most exported goods (covering over 8,500 tariff lines). Certain categories (e.g., goods restricted under export policy) are excluded.