RoDTEP: Advantages of embedded duties remission scheme for exports prolonged to SEZs, EOUs

The Centre has introduced extension of advantages beneath the favored export promotion scheme, Remission of Duties and Taxes on Exported Merchandise (RoDTEP), to export oriented models (EOUs),  models in particular financial zones (SEZs) and Advance Authorisation (AA) holders, per a authorities assertion. 

Maintaining budgetary allocation in view, the extension of RoDTEP advantages to extra sectors is presently until September 30, 2024, a launch issued by the Commerce Division on Friday famous.

“This choice is available in recognition of the numerous contribution these sectors make to India’s exports, constituting roughly 25 per cent of our exports. Amidst world financial uncertainties and provide chain disruptions, extending RoDTEP to the uncovered sectors comparable to AA, EOU, and SEZ models will assist the exporting group in dealing with the worldwide headwinds,” it stated.

The RoDTEP scheme is a vital one for refunding numerous embedded taxes and duties on exported merchandise. Since its inception in January 2021, the scheme has offered help amounting to ₹42,000 crore to over 10,500 export objects, it added.

Within the present monetary 12 months, the scheme has a price range of ₹15,070 crore with a further improve of 10 per cent in FY25.

Below RoDTEP, introduced for over 8,500 merchandise, numerous Central and State duties, taxes, and levies imposed on enter merchandise, amongst others, are refunded to exporters. The present RoDTEP charges are within the vary of 0.3 per cent to 4.3 per cent.

Key sectors

“The extension of the RoDTEP scheme to those sectors is geared toward enhancing India’s export competitiveness in worldwide markets. Key sectors comparable to engineering, textiles, chemical substances, prescribed drugs and Meals Processing and plenty of others stand to learn from the measure,” the notice stated.