RoDTEP Rates Slashed to Remain within Budget,
Scheme Extended by only One More Year even as Exports Languish
·
The
new rates slashed range from 0.3% to 3.9%, which is percentage wise lower than the
0.5% to 4.3% in the previous period.
·
The
RoDTEP scheme extended for exports made from DTA
Units till 30.09.2025 and AA/EOU/SEZ Units till 31.12.2024.
·
The
revised rates as in Appendix 4R and Appendix 4RE are also notified for
implementation with effect from 10.10.2024, but will be implemented only after
ICEGATE portal is updated with new rates.
The
government on Monday (30.09.2024) extended the period of its flagship export
promotion scheme Remission of Duties and Taxes on Exported Products (RoDTEP) for a year till September 30, 2025 but revised the
rates downwards so that the outgo remains within the budgetary allocation.
Advance
Authorisation holders, SEZ units and EoUs the scheme
has been extended only for three months to December 21, 2024, a notification by
the Directorate General of Foreign Trade (DGFT).
“To
adhere to the approved budget under the scheme necessary changes will be made
in scheme benefits, including revisions and deletions in eligible RoDTEP export items, rates, per unit value cap and other
measures as and when required,” the notification said.
The
scheme, which was first introduced in 2021, covers exports of 10,642 products seen
many extensions and modifications since it was first introduced. The current
period of extension was expiring this month-end.
The
incentive is paid in the form of transferable duty credit scrip which can be
used to pay import duties or sold in the market by exporters.
The
RoDTEP scheme operates under a budgetary framework
and for FY 24-25, a budget of Rs 23,922 crores is available for it. In 2023-24
around Rs 14,874 crore was spent on the scheme.
The
RoDTEP scheme is designed to refund duties, taxes and
levies at the central, state and local level that get added to the cost of
products meant for exports. It is a replacement for the Merchandise Exports
from India scheme which along with other export promotion schemes were
successfully challenged at the World Trade Organization by the US.
Duty
Drawback returns customs duties on inputs while GST refund give back the GST suffered
and final products.
[DGFT
Notification No:32/2024-25 dated 30 September, 2024]
Effect of this Notification: The RoDTEP
scheme is extended for exports made from DTA Units till 30.09.2025 and
AA/EOU/SEZ Units till 31.12.2024. The revised rates as in Appendix 4R and
Appendix 4RE are also notified for implementation with effect from 10.10.2024,
once the ICEGATE portal gets updated with new rates.
Subject
: Extension of RoDTEP scheme for exports made from
DTA Units and AAIEOU/SEZ Units
S.O.(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, as amended from time to time, the Central Government makes the
following changes in Notification No. 70/2023 dated 08.03.2024, namely:
i. The RoDTEP Scheme, for export of products manufactured by DTA
Units, is being extended beyond 30.09.2024 till 30.09.2025;
ii. The
RoDTEP Scheme, for export of products manufactured by
Advance Authorization holders (Except deemed exports) , Export Oriented Units
(EOUs) and SEZ Units, is being extended beyond 30.09.2024 till 31.12.2024.
iii. However,
notwithstanding the extension of the Scheme provided beyond 30.09.2024 in
sub-paras i) and ii) above, in order to adhere to the
budgetary framework as provided in Para 4.54 of FTP 2023, so that the outgo
remains within the approved budget of the Scheme, necessary changes shall be
made to the Scheme benefits, wherever necessary, including revisions or
deletions in the eligible RoDTEP export items, rates,
per unit value caps and other measures as per Para 4.54 (v) , (vi) , (vii) of
FTP 2023, as and when required.
2.
The new RoDTEP rates based on the recommendation of RoDTEP Committee are being notified w.e.f. 10.10.2024 under
revised Appendix 4R (for DTA units) and Appendix 4RE (for Advance Authorization
holders {Except deemed exports), Export Oriented Units (EOUs) and SEZ Units).
However, for exports made between 01.10.2024 and 09.10.2024, the existing rates
as in Notification No.70/2023 dated 08.03.2024 shall continue to apply.
3.
The new Appendix 4R and Appendix 4RE containing the eligible RoDTEP export items, rates and per unit value caps,
wherever applicable is available at the DGFT portal- www.dgft.gov.in under the
link 'Regulations>RoDTEP'.
[Issued
from File No. 01/61/180/155/AM21/PC-3 / PART-3]