The government has notified Remission of Duties & Taxes on Export Products(RoDTEP) rates in the range of 0.3-4.3 percent. These rates will cover 8,555 tariff lines.
RoDTEP support will be available to eligible exporters at a notified rate as the percentage of FOB value.
The government has also notified guidelines for the scheme. Under the RoDTEP, various central and state duties, taxes, levies imposed on input products among others are refunded to exporters to boost exports.
The government has decided to extend the benefit of the
RoDTEP scheme to all goods, with effect from January 1, 2021, according to a notification by the Directorate General of Foreign Trade (DGFT).
Under the RoDTEP scheme, marine, agriculture, leather and gems/jewellery are covered. Similar support will be given to apparel and made-up exports under the RoSCTL scheme.
The entire value chain of textiles gets covered via RoDTEP and
RoSCTL.
The total budget outlay for RoDTEP and RoSCTL is Rs 19,400 crore and the outlay is for the time period between January 1, 2021 and March 31, 2022.
Abhishek Jain, Tax Partner, EY, said, "Although the RoDTEP scheme was to be effective from Jan 1, 2021, but the rate was not yet announced and were keenly awaited by the exporters of the goods. The Notification lists down several ineligible categories such as exports by Advance Authorisation holders, EOUs, SEZs, Units set up under the MOOWR scheme. These industry players would be disappointed. The Notification specifies that value capping per unit of the export product may be prescribed if required and would operate under the overall budget ceiling. The benefits would be given in the form of transferrable electronic scrips (e-scrips). The export industry would hope seamless transition into a new scheme with equitable benefit.”
(Edited by : Anshul)
First Published: Aug 17, 2021 3:43 PM IST
