Introduction: In a significant move, the Ministry of Commerce & Industry has extended its support under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) until 30th June 2024. This extension, which was initially set to expire on 30th September 2023, comes with the promise of continuity at existing rates for export items. This article delves into the implications and significance of this extension, its impact on the export community, and the framework of the RoDTEP Scheme.
Detailed Analysis: The RoDTEP Scheme, introduced by the Government as a duty remission scheme on exports, has been in operation since 1st January 2021. It plays a pivotal role in reimbursing taxes, duties, and levies incurred by export entities during the manufacturing and distribution of exported products. Notably, these are expenses not covered by any other mechanism, spanning central, state, and local levels.
One key aspect of this extension is its alignment with the World Trade Organization (WTO) standards, enhancing India’s international trade compliance. It ensures that exporters can engage in international contracts under favorable conditions, fostering global competitiveness.
An important development within the RoDTEP framework is the reconstitution of the RoDTEP Committee in the Department of Revenue. This committee is tasked with reviewing and recommending the ceiling rates applicable to different export sectors under the RoDTEP Scheme. In a recent interaction held at Vanijya Bhawan in New Delhi, the committee engaged with Export Promotion Councils (EPCs) and Chamber of Commerce representatives. Discussions revolved around the methodology, budget allocation, and overall implementation of the Scheme.
The EPCs, representing the export community, emphasized the necessity of increasing the RoDTEP budget allocation. They advocated for higher rates to be made available to all export items, with the aim of securing greater market access on the global stage. This highlights the critical role of RoDTEP in facilitating trade growth and expansion.
As of now, the RoDTEP Scheme has already provided substantial support, extending Rs. 27,018 crores over a 27-month period until 31st March 2023. Looking ahead, for the fiscal year 2023-24, a budget of Rs. 15,070 crores has been allocated to support 10610 HS lines at the 8-digit level. This allocation reflects the government’s commitment to bolstering the export sector.
Conclusion: The extension of the RoDTEP Scheme until June 2024 is a positive and strategic move by the Ministry of Commerce & Industry. It ensures the continuity of export support at existing rates, further aligning India with international trade norms. The involvement of the RoDTEP Committee and Export Promotion Councils underscores the government’s commitment to addressing the needs and concerns of the export community. With a substantial budget allocation for the upcoming fiscal year, the RoDTEP Scheme continues to be a crucial instrument in promoting India’s exports and enhancing its global competitiveness. Exporters can now operate with confidence in a supportive and conducive environment, ultimately contributing to the nation’s economic growth.
****
Extension of RoDTEP scheme for exports made from 01.10.2023
Ministry of Commerce and Industry
(Department of Commerce )
(Directorate General of Foreign Trade)
New Delhi
Notification No. 33/22023 Dated: 26th September, 2023
Subject: Extension of RoDTEP scheme for exports made from 01.10.2023 – reg
S.O. 4230(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, the Central Government hereby notifies an extension of RoDTEP scheme for exports made from 01.10.2023.
2. The existing rates for all the items covered under RoDTEP will be applicable for exports made from 01.10.2023 to 30.06.2024. However, it would be subject to the budgetary framework as provided under Para 4.54 of FTP 2023 so that the remissions for current financial year are managed within the approved Budget of the Scheme.
Effect of this Notification: The RoDTEP scheme is extended for exports made from 01.10.2023 and shall be applicable till 30.06.2024.
[F. No. 01/61/180/155/AM21/PC-3(Part1)]
SANTOSH KUMAR SARANGI, Director General of Foreign Trade Ex-officio Addl. Secy.
