RoDETP hits a roadbump

Merchandise Exports from India Scheme (MEIS) which was floated under the Foreign Trade Policy 2015-20 (FTP) was replaced by Remission of Duties and Taxes on Exported products (RoDTEP) scheme which aims to reimburse the non-refundable or non-creditable taxes and duties which are directly or indirectly borne by the exporters during the course of manufacture and distribution of an export product. Evidently, the RoDTEP scheme has hit a bump in the road as irrespective of the implementation since January 1, 2021, the contours of the scheme and the rates are yet to be notified. Delayed operationalization of the scheme has clearly exacerbated the exporters woes.

Economic Laws Practice (ELP)’s Jignesh Ghelani, Partner and Palak Shah, Principal Associate in their article with TIOL PRIVATE LIMITED highlight certain existing as well as probable woes since the onset of RoDTEP, such as:

• Cap in MEIS benefit
• Insufficiency of funds with the Government
• Exporters operating under certain schemes debarred from availing RoDTEP
• Other crucial conditions and restrictions under the RoDTEP scheme

Read the detailed article here: Click here