New Delhi: The government has decided to extend the assistance of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until June 30, 2024, instead of the previous date of September 30, 2023. This move aims to provide continued support and benefits to exporters.
According to the Ministry of Commerce and Industry, this action will support the exporting community in effectively negotiating improved terms for their export contracts in the current global environment.
The program offers a method for reimbursing taxes, tariffs, and fees that are currently not refunded through any other means at the national, regional, and local levels, but are incurred by export businesses throughout the production and distribution of exported goods. The implementation of the scheme is in accordance with the standards set by the World Trade Organisation (WTO) and is actively being carried out within a comprehensive IT infrastructure, ensuring efficiency and compatibility.
‘The Export Promotion Councils (EPCs) in their observations emphasised the need for strengthening the RoDTEP budget allocation and for higher rates to be made available to all export items to help them secure greater market access abroad,’ the statement said.
- The RoDTEP Scheme was implemented on January 1, 2021, and was introduced as a duty remission scheme on exports.
- The RoDTEP Committee has been reconstituted in the Department of Revenue in accordance with the scheme structure to review and suggest the ceiling rates under the RoDTEP Scheme for various export industries.
- The committee met for the first time recently, with export promotion councils and industry chambers to examine the methodology and other aspects of the scheme's execution.
- The Export Promotion Councils (EPCs) in their observations emphasised the need for strengthening the RoDTEP budget allocation and for higher rates to be made available to all export items to help them secure greater market access abroad.
- The scheme has been extended for a period of 27 months, until March 31, 2023, at a cost of Rs. 27,018 crore (US$ 3.23 billion).
- The RoDTEP scheme runs within a budgetary framework, with a budget of Rs. 15,070 crore (US$ 1.80 billion) available for 2023-24 to support 10,610 goods (HS lines at the 8-digit level).