It was recently announced that a new scheme, RoDTEP
(Remission of Duties or Taxes on Export Products) Scheme will
replace MEIS (Merchandise Exports from India) Scheme with
effect from 1 January 2021. This has raised new questions for
exporters who relied on MEIS until now. We summarised the facts
known thus far about the new RoDTEP scheme and how it differs from
the existing MEIS scheme.
Need for introduction of RoDTEP Scheme
The RoDTEP Scheme came into existence because USA filed a
complaint against India at the WTO stating that export subsidies
like the MEIS scheme given by the Government of India (GOI) gave
undue benefits to Indian exporters and was against the WTO rules.
India lost the case at WTO and had to come up with a new
WTO-compliant scheme to help Indian exporters. Hence, the RoDTEP
Scheme was approved by the Union Cabinet on 13th March 2020 and it
will be effective from January 2021.
