Syllabus: GS-III, Subject: Economy, Topic: Trade and External sector, Issue: RoDTEP
Context: Shipments from Special Economic Zones (SEZs) and Export Oriented Units (EOUs) will be eligible for tax refunds under the RoDTEP. Scheme.
- Exports from SEZs and EOUs account for about a fourth of India’s exports.
- Exporting firms who use the Advance Authorisation (AA) scheme will also be covered under RoDTEP.
Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:
- Provides for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism.
- Refunds are issued in the form of transferable electronic scrip (duty credit scrips) that can be used
- For import duty payments
- Transferred to other parties.
- WTO compatible and is being implemented in an end-to-end IT
Advance Authorisation (AA) scheme
- Allows duty free import of inputs, which are physically incorporated in an export product.
- Obligation for exporters: To export finished goods with a specific value addition within a stipulated time frame.
- Special Advance Authorisation Scheme (SAAS): Variant of AA specifically for the apparel and clothing accessories sector.
Related Concepts:
| Special Economic Zone (SEZ) is a designated area within a country that has different economic regulations compared to the rest of the country.
Main purpose : To boost economic activity by attracting foreign investment and promoting exports. |
