RoDTEP scheme: FIEO expects steel, pharma and chemical sectors to be included

Ajay Sahai, DG & CEO of Federation of Indian Export Organisations (FIEO), on Wednesday, said that RoDTEP scheme provides a cushion to the export sector, along with stability and future visibility.

He further said that one should not compare the rates between the two schemes; Merchandise Exports from India Scheme (MEIS) was a promotional scheme, whereas RoDTEP is a duty neutralization scheme and therefore the parameter fixation of the two rates have been entirely different.

Exporters welcome RoDTEP rate announcement, Pawan Goenka says not possible to raise exports where it is not cost competitive

Eight months after the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was notified, the government has finally announced rates under the scheme. Depending on the freight on board (FOB) value of exports, the rates range from 0.5 to 4.3 percent and will cover around 8,555 tariff lines. RoDTEP support will be available to eligible exporters at a notified rate as a percentage of the FOB value.

Also Read: Govt notifies RoDTEP rates in range of 0.3%-4.3%

In an interview to CNBC-TV18, Sahai said, “One positive side of it is that RoDTEP has been expanded, it covers more products. Second, the rates announced provide some sort of cushion to the export sector, they can factor the rate in their future costing; also it has provided stability to the scheme.”

Also Read: RoDTEP scheme: IOL Chemicals expects pharma to be included

According to him, there should be some refund mechanism for steel, pharma and chemicals. “These sectors definitely deserve an export benefit of RoDTEP and therefore, we are approaching the government for inclusion of these sectors in the RoDTEP scheme,” said Sahai.

For the entire interview, watch the video