03 October 2023, Mumbai
The Indian government has recently announced the extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for an additional nine months until June 30, 2024.
Assuring Uninterrupted Support to Exporters
This scheme offers exporters of 18 products, including items like sarees and lungis, a refund for the duties and taxes they incur. The primary objective of the RoDTEP scheme is to enhance the competitiveness of Indian exports in the global market.
RoDTEP Extension to Empower Exporters in the Global Market
The Ministry of Commerce and Industry has expressed that the RoDTEP extension would empower exporters to negotiate more favorable terms for their export contracts, given the prevailing international circumstances.
The scheme fully complies with WTO regulations and operates through an IT-based system.
Review and Recommend Ceiling Rates
The government has also reconstituted the RoDTEP Committee within the Department of Revenue.
This committee will be responsible for reviewing and recommending ceiling rates for different export sectors covered by the scheme. The Committee recently held its inaugural meeting in New Delhi, collaborating with Export Promotion Councils (EPCs) and Chambers of Commerce.
They discussed various aspects of the scheme and its implementation, including methodologies.
EPCs Request Increased Budget Allocation
During these discussions, the EPCs emphasized the necessity of increasing the budget allocation for RoDTEP and providing higher rates for all export items. This, they argued, would help exporters navigate the challenges posed by rising input costs and global competition.
Furthermore, they requested timely notifications of RoDTEP rates for all sectors and a simplified claims process.
The Committee assured the EPCs that their suggestions would be taken into serious consideration, and they pledged to expedite their work accordingly.
Welcome step
The extension of the RoDTEP scheme and the government's commitment to supporting exporters are welcome developments.
The scheme is expected to play a vital role in boosting India's exports and enhancing the country's global competitiveness.
5 key insights:
- RoDTEP scheme extended by 9 months
- To support exporters and boost exports
- Offers refund for duties and taxes
- To enhance competitiveness in the global market
- The government committed to supporting exporters
