Under the scheme, the embedded central, state and local duties or taxes will get refunded and credited in an exporter’s ledger account with customs. This can be used to pay basic customs duty on imported goods. The credits can also be transferred to other importers, the ministry said.
So far refunds were not taking place, adversely impacting exports. India’s exports fell 8.74% in November, steeper than 5.12% dip in October at $23.52 billion.
The RoDTEP rates, conditions and exclusions under which it can be availed would be specified by the department of commerce, based on recommendation of the GK Pillai committee that are expected soon.
“The notified rates, irrespective of the date of notification, shall apply with effect from 1st January, 2021 to all eligible exports of goods,” the ministry said.
Exporters will have to declare intention of availing the scheme for each item in shipping bill or bill of export.
The RoDTEP scheme will replace the popular Merchandise Exports from India Scheme as the latter has been found to violate global trade norms following a compliant from the US at the World Trade Organization.
The GK Pillai headed committee had sought data and evidence from industry that have suggested higher remission rates than 2%, 3% and 5%, payable as a percentage of realised free-on-board value as incentives under MEIS.