The government on Tuesday notified the rates for export incentive scheme RoDTEP and its rules with an aim to boost exports.
The government has decided to extend the benefit of Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to all goods, with effect from January 1, 2021, according to a notification by the Directorate General of Foreign Trade (DGFT).
The rates for different sectors include 0.5 per cent, 2.5 per cent and 4 per cent. It has also notified guidelines for the scheme.
"The Centre has today notified the RoDTEP guidelines and rates. The rates will cover 8,555 tariff lines (products)," the Commerce Ministry said in a statement.
Under the RoDTEP, various central and state duties, taxes, levies imposed on input products among others are refunded to exporters to boost exports.
Welcoming the announcement of Remission of Duties and Taxes on Export Products (RoDTEP) rates by the Government, Mr Chandrajit Banerjee, Director General, CII, said, "This would help the exporters to factor in the rates while finalizing new orders and contracts and would go a long way in further boosting exports of the country. At a time when geopolitics and the post pandemic impact of COVID-19 are transforming global trade and investment, India’s mission mode endeavour to achieve the $400 billion in exports this year will be supported by this scheme.”
The announcement made by the Ministry of Commerce and Industry regarding the long-awaited RoDTEP rates and pending refunds was urgently needed as it will make it easier for exporters to calculate their costs and inputs, said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry.
Vijay Kalantri, Chairman, World Trade Center Mumbai, said “This will bring clarity to exporters on the incentive amount that they can get under this scheme and accordingly give price quotations for future export orders. However, the government has given around 2-4 percent RoDTEP rates for exporters of fresh fruits and vegetables, which is too less. Further, the government has postponed the implementation of the RoDTEP scheme for Export Oriented Units and units in Special Economic Zones."
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