The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry of India, has issued a pivotal notification extending the RoDTEP (Remission of Duties and Taxes on Exported Products) support for exports made by specific categories of exporters. Notification No. 70/2023-DGFT, dated 8th March 2024, outlines significant amendments to the Foreign Trade Policy, 2023, specifically benefiting Advance Authorisation (AA) holders, Export Oriented Units (EOU), and Special Economic Zones (SEZ) units.
Detailed Analysis
Expansion of RoDTEP Support: The notification states the removal of certain ineligible supplies/items/categories under the scheme, broadening the scope of the RoDTEP support. Particularly, it amends Para 4.55 of the Foreign Trade Policy 2023, deleting specific serial numbers that were previously ineligible, with these changes taking effect from 11th March 2024.
Amendment of Rebate Provisions: A significant amendment was made to Para 4.54, revising the provision for granting rebates to eligible exporters. This includes a notified rate as a percentage of FOB value with a value cap per unit of the exported product. Notably, this provision now encompasses exports manufactured by AA holders, EOUs, and SEZ units under Appendix 4RE, ensuring these entities are specifically catered to under the scheme.
Introduction of Para 4.59A: A new addition, Para 4.59A, has been introduced, detailing the eligibility for RoDTEP export items, rates, and per unit value caps, specifically for products manufactured by AA holders (except Deemed Exports), EOU, and SEZ units. This inclusion signifies a dedicated effort to streamline the support structure for these categories.
Implementation Dates and Periods: The notification sets forth the implementation dates for exports under Appendix 4RE, with a notable distinction between the periods for AA holders/EOUs and SEZ units. The latter’s eligibility commences upon IT integration with the Customs Automated System (ICEGATE), demonstrating a phased approach to implementation.
Revisions and Extensions: Further, the notification supersedes a previous one, extending the RoDTEP scheme’s applicability till 30th September 2024. This extension signifies the government’s commitment to supporting the export sector, particularly in light of budgetary considerations and the need for alignment with global trade practices.
Conclusion: The DGFT’s latest notification marks a significant step in bolstering India’s export incentives under the RoDTEP scheme. By extending support to AA holders, EOUs, and SEZ units, the government aims to enhance competitiveness and alleviate the tax burden on exporters. This strategic move is expected to have a positive impact on India’s foreign trade landscape, encouraging growth and sustainability in the export sector.
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RELATED PRESS RELEASE:
Ministry of Commerce & Industry
Government of India notifies extension of Remission of Duties and Taxes on Exported Products support to Advance Authorisation Holders, Export Oriented Units and Special Economic Zones Units
Posted On: 08 MAR 2024
Union Minister of Commerce & Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Shri Piyush Goyal announced the extension of Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme support to additional export sectors in New Delhi today. The Government of India has announced extension of the RoDTEP Scheme support to additional export sectors i.e. Advance Authorisation (AA) holders, Export Oriented Units (EOU) and Special Economic Zones (SEZ) export units. This decision comes in recognition of the significant contribution these sectors make to India’s Exports, constituting approximately 25% of our exports. Amidst global economic uncertainties and supply chain disruptions, extending RoDTEP to the uncovered sectors such as AA, EOU, and SEZ units will help the exporting community in handling the international headwinds.
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme is a key initiative by the Government of India aimed at refunding various embedded taxes and duties on exported products. Since its inception in January 2021, the RoDTEP Scheme has already provided support amounting to ₹42,000 Crores to more than 10,500 export items at 8-digit ITC HS Code level. In the current financial year, the scheme has a budget of ₹15,070 Crore with an additional increase of 10% in FY 2024-25.
Keeping budgetary allocation in view, the extension of RODTEP to additional sectors is presently till 30.09.2024. The extension of the RODTEP scheme to these sectors is aimed at enhancing India’s export competitiveness in international markets. Key sectors such as Engineering, Textiles, Chemicals, Pharmaceuticals & Food Processing and many others stand to benefit from the measure.
By providing support to crucial export sectors, the government aims to not only enhance their competitiveness but also create employment opportunities and contribute to overall economic growth, aligning with the vision of building an Aatmanirbhar Bharat. The government is confident that the proactive measures being taken, including efforts to negotiate new FTAs, will further accelerate India’s journey towards achieving USD One trillion merchandise export levels.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No: 70/2023-DGFT | Dated: 8th March, 2024
Subject: Extending RoDTEP support for exports made by Advance Authorisation (AA) holders, Export Oriented Units (EOU), Special Economic Zones (SEZ) units- reg.
S.O.1190(E). -In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy 2023, as amended from time to time, and taking into account the recommendations of the RoDTEP Committee Report, the Central Government hereby makes the following amendments in the Foreign Trade Policy, 2023:
2. Para 4.55: Ineligible supplies/items/categories under the Scheme—
The serial numbers (viii), (x), (xi) and (xii) of Para 4.55 of FTP 2023 are deleted with effect from 11.03.2024.
3. Serial number (vii) of Para 4.54 is amended to be read as follows:
| Existing Provision |
Amended Provision |
| Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product, wherever required, on export of items which are categorized under the notified 8 digit HS Code. However, for certain export items, a fixed quantum of rebate amount per unit may also be notified. Rates of rebate / value cap per unit under RoDTEP will be notified in Appendix 4R. In addition to necessary changes which may be brought in view of budget control measures as mentioned above, efforts would be made to review the RoDTEP rates on an annual basis and to notify them well in advance before the beginning of a financial year.’ |
‘Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product, wherever required, on export of items which are categorized under the notified 8 digit HS Code. However, for certain export items, a fixed quantum of rebate amount per unit may also be notified. Rates of rebate / value cap per unit under RoDTEP will be notified in Appendix 4R and Appendix 4RE [for exports of products manufactured by Advance Authorisation holders (except Deemed Exports), EOU and SEZ units]. In addition to necessary changes which may be brought in view of budget control measures as mentioned above, efforts would be made to review the RoDTEP rates on an annual basis and to notify them well in advance before the beginning of a financial year.’ |
4. A new Para 4.59A is added to be read as follows:
Tor exports of products manufactured by AA holders (except Deemed Exports), EOU and SEZ units, the eligible RoDTEP export items, rates and per unit value caps, wherever applicable, are contained in Appendix 4RE and is available at the DGFT portal (www.dgft.gov.in) under the link >Regulations>RoDTEP’.
5.
(a) In line with serial number (x) of Para 4.54, the implementation date/period for exports under Appendix 4RE is being notified for exports of products manufactured by Advance Authorisation holders (except Deemed Exports) and Export Oriented Units (EOUs) from 11.03.2024 till 30.09.2024 only.
(b) The RoDTEP implementation for exports of products manufactured by SEZ units will happen once the IT integration of SEZ units with Customs Automated System (ICEGATE) takes place, which is expected to be operational from 01.04.2024. The implementation period for exports of products manufactured by Free Trade Warehousing Zone or SEZ units will be from the date of implementation till 30.09.2024 only.
(c) However, to adhere to the budgetary framework as provided under Para 4.54 of FTP 2023 so that the outgo remains within the approved Budget of the Scheme, necessary changes including revisions or deletions, wherever necessary, will be made in Appendix 4R & Appendix 4RE as and when required.
6. In order to carry out alignments in the RoDTEP schedule necessitating out of the recommendations of the RoDTEP Committee relating to AA holders (except Deemed Exports), EOU and SEZs, revised RoDTEP rates for 25 HS codes in Appendix 4R are being notified.
7. In supersession of Notification No. 33 /2023 dated 26th September, 2023, the RoDTEP scheme is being extended beyond 30.06.2024 and shall be applicable till 30.09.2024 now.
8. The notified new Appendix 4RE and the revised rates for 25 export items (8-digit HS codes for Appendix 4R) are available at DGFT portal www.dgft.gov.in under the link > ‘Regulations > RoDTEP’.
Effect of this Notification:
i. RoDTEP is being extended to AA holders (except Deemed Exports) & EOU units from 11.03.2024 till 30.09.2024 as per Appendix 4RE.
ii. Extension of RoDTEP to SEZ units as per Appendix 4RE will take place on IT integration of SEZs with Customs Automated System (ICEGATE).
iii. RoDTEP rate revisions in 25 HS Codes are also being made in Appendix 4R.
iv. RoDTEP Scheme extended earlier in September 2023 till 30.06.2024, is being further extended for exports till 30.09.2024.
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-officio Additional Secretary to the Government of India
E-mail:dgft@nic.in
[Issued from File No. 01/61/180/155/AM21/PC3/Part-2]
