24 November 2020
The Government of India has recently announced ‘Remission of Duties and Taxes on Export Products Scheme’ (“RoDTEP”), which seeks to reimburse embedded duties and taxes on exported goods. With an adverse World Trade Organization (“WTO”) ruling, the popular export incentive scheme – Merchandise Export from India Scheme (“MEIS”) will be discontinued soon; the RoDTEP scheme is WTO compliant and is expected to be introduced effective January 1, 2021. Currently, the Government of India is determining the ceiling rate of incentives for each industry and product. Active participation of Indian exporters is sought for this exercise, as extracting the embedded duties and taxes in the entire supplier chain is a complex and involved exercise. Incentive under the RoDTEP Scheme may be different from that currently available under MEIS and hence, it is important for Indian exporters to provide granular data to their respective export promotion councils to ensure minimal disruption to cash flows and profits. Being a new scheme, exercise of determining incentive rates/ percentage may mature over of a period of time and hence Indian exporters should set up suitable processes, IT systems, etc which will ensure collation of granular data over a period of time.
The Global Trade and Customs team at Acuity Law has prepared a detailed write-up on the RoDTEP scheme, which provides an understanding, features and way forward as applicable to Indian exporters.
Click here to read more. (9 pages PDF).
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
al@acuitylaw.co.in
