#rodtep

Dr. Prem Garg Discusses Restoration of RoDTEP Scheme on CNBC Awaaz

Overview of India’s Export Incentive Schemes

India’s export ecosystem has long relied on government-backed incentive schemes to boost trade competitiveness. Three of the most significant schemes introduced in recent years are MEIS (Merchandise Exports from India Scheme), SEIS (Service Exports from India Scheme), and the currently active RoDTEP (Remission of Duties and Taxes on Exported Products). While MEIS and SEIS were phased out following WTO compliance concerns, RoDTEP was launched as a compliant and transparent alternative.

What Is the RoDTEP Scheme?

RoDTEP stands for Remission of Duties and Taxes on Exported Products. It aims to refund embedded taxes and duties—like electricity duty, VAT on fuel, and mandi tax—that are not reimbursed under GST.

Key Highlights:

Objective: Provide cost competitiveness to exporters by refunding hidden duties.

Coverage: Applicable to most goods sectors including agriculture, textiles, and engineering.

Disbursal: Rebate issued as transferable electronic duty credit ledger via the ICEGATE portal.

WTO Compliant: Structured in line with global trade rules.

What Was MEIS?

The Merchandise Exports from India Scheme (MEIS) was introduced under the Foreign Trade Policy (FTP) 2015–2020. It offered direct financial incentives to exporters based on the Free on Board (FOB) value of eligible exports.

Key Features:

Focus: Promote exports of specified goods to specific markets.

Incentive: Duty Credit Scrips ranging from 2% to 5% of FOB value.

Discontinuation: Phased out in December 2020 after WTO ruled it non-compliant.

What Was SEIS?

The Service Exports from India Scheme (SEIS) provided incentives to service exporters who earned foreign exchange. Applicable to sectors like IT, healthcare, education, and business consulting.

Key Features:

Incentive: 3% to 5% of net foreign exchange earned.

Eligibility: Service providers located in India with active IEC and eligible services.

Discontinuation: Not extended beyond FY 2020–21.

Why Was RoDTEP Introduced?

India faced pressure from the WTO after MEIS and SEIS were deemed export-contingent subsidies in violation of trade rules. As a corrective step, RoDTEP was launched to:

Replace non-compliant schemes

Promote transparency

Ensure long-term trade competitiveness

Reduce costs for exporters through systematic refunds

Current RoDTEP Rates and Eligibility

RoDTEP rates vary by HS code and product category.

Published by: Directorate General of Foreign Trade (DGFT)

Eligibility:

Manufacturer or merchant exporters

Proper filing of shipping bills with RoDTEP claim

Digital registration on ICEGATE portal

Final Thoughts: Which Scheme Helps Exporters Most Today?

While MEIS and SEIS served their purpose, they lacked longevity due to compliance issues. RoDTEP stands out as the only active and WTO-compliant scheme, offering long-term, process-driven benefits. For exporters in 2025, aligning with RoDTEP is not only necessary but also strategic, ensuring seamless customs processing, better cash flow, and international credibility.