In a significant move to bolster India’s export framework, the Directorate General of Foreign Trade, has announced pivotal amendments to the Foreign Trade Policy 2023 via Notification No. 70/2023, dated March 8, 2024. These amendments are strategically designed to enhance the scope and efficacy of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, an initiative aimed at making Indian exports more competitive on the global stage.
Notably, the inclusion of exports by Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZ) units under the RoDTEP scheme would support a diverse range of export-oriented industries.
Key highlights of the notification include:
1. Amendments in Eligibility and Scheme Provisions:
- Certain items/categories previously ineligible under the RoDTEP scheme, as listed in Para 4.55 of the Foreign Trade Policy 2023, have been made eligible with effect from March 11, 2024.
- The scheme’s provisions have been amended to provide a rebate to eligible exporters at a notified rate as a percentage of FOB value, with additional details for exports by Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZ) units included in a new appendix (Appendix 4RE).
2. Extension and Implementation Dates:
- The scheme is now extended to include AA holders (excluding Deemed Exports), EOU, and SEZ units, with specific implementation periods and conditions outlined for each group. Notably, the implementation for SEZ units is contingent on the integration of these units with the Customs Automated System (ICEGATE), expected to be operational from April 1, 2024.
3. Budgetary and Rate Adjustments:
- Adjustments, including revisions or deletions, may be made to ensure the scheme’s outgo remains within the approved budget. Revised RoDTEP rates for 25 HS codes are also announced to align with recommendations from the RoDTEP Committee.
4. Extension of the RoDTEP Scheme:
- The notification also extends the overall duration of the RoDTEP scheme beyond the previously set deadline of June 30, 2024, to now continue until September 30, 2024.
In response to evolving trade dynamics and the recommendations of the Remission of Duties and Taxes on Exported Products (RoDTEP) Committee Report, the Indian government has recognized the necessity to adjust the Foreign Trade Policy 2023 to better support exporters and enhance the competitiveness of Indian goods in the global market. The amendments focus on extending the benefits of the RoDTEP scheme to include exports made by Advance Authorisation (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zone (SEZ) units. This decision reflects the government’s commitment to promoting exports by providing necessary incentives and rebates on exported products, thus facilitating the overall growth of India’s export sector and aligning with the objectives of trade development and regulation as envisioned in the Foreign Trade (Development and Regulation) Act, 1992.
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