The government has decided to extend the benefit of the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods from January 1, 2021, according to the Ministry of Finance.
The RoDTEP scheme would refund to exporters the embedded Central, State and local duties/taxes that were so far not being rebated/refunded and were, therefore, placing our exports at a disadvantage, the Ministry said in a release.
The refund would be credited in an exporter's ledger account with customs and used to pay basic customs duty on imported goods and the credits can also be transferred to other importers.
The RoDTEP rates would be notified shortly by the Department of Commerce, based on the recommendation of a Committee chaired by Dr GK Pillai, former Commerce and Home Secretary.
The final Report of the Committee is expected shortly, the Ministry sad.
An exporter desirous of availing the benefit of the RoDTEP scheme shall be required to declare intention for each export item in the shipping bill or bill of export.
"The RoDTEP shall be allowed, subject to specified conditions and exclusions. The notified rates, irrespective of the date of notification, will apply with effect from January 1, 2021 to all eligible exports of goods," it said.
( With inputs from ANI )
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