From Krishnan Nayar
New Delhi, 27th September, 2023 (WAM) – India’s Ministry of Commerce and Industry has extended by nine months a Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP).
The extension will prevent any undue increase in the prices of Indian products in major export markets such as the GCC.
“This will help India’s exporting community to negotiate export contracts in the present difficult international environment on better terms,” the Ministry said in an announcement. “The Scheme is World Trade Organisation (WTO) compatible and is being implemented in an end-to-end, information technology environment.”
The Scheme was to have expired on 30th September. The extension will mean it will be in place until 30th June next year.
The announcement said the RoDTEP Scheme was conceived by the Indian government as a duty remission scheme on exports. “It provides a mechanism for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism, at the federal, state and local levels, but which are incurred by the export entities in the process of manufacture and distribution of exported products.”
In view of the extension, the Committee to review and recommend the ceiling rates under the Scheme for different export sectors has been reconstituted by the government’s Department of Revenue.
“The Committee held its first dialogue today with Export Promotion Councils and Chambers of Commerce to work out the methodology and other issues relating to the Scheme and its implementation,” the announcement added.