In a significant move aimed at supporting India’s export sector, the Directorate General of Foreign Trade (DGFT) has announced an extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The scheme, designed to refund taxes and duties to pharma exporters, has been a critical policy for promoting India’s export competitiveness.
According to the notification, the RoDTEP scheme will continue for exports of products manufactured by Domestic for Advance Authorization holders (except deemed exports), Export Oriented Units (EOUs), and Special Economic Zone (SEZ) Units until December 31, 2024.
This decision, taken under the authority of Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and in accordance with Para 1.02 of the Foreign Trade Policy (FTP) 2023, reflects the government’s commitment to sustaining the benefits of the RoDTEP scheme for Indian exporters. However, the notification also includes provisions to ensure that the scheme’s benefits remain within the limits of the approved budget, as per Para 4.54 of the FTP 2023. As a result, adjustments such as revisions or deletions in the list of eligible RoDTEP export items, rates, and value caps may be implemented as needed.
The notification specifies that the new RoDTEP rates, recommended by the RoDTEP Committee, will come into effect on October 10, 2024, through revised Appendix 4R (for Domestic Tariff Area (DTA) units) and Appendix 4RE (for AA holders, EOUs, and SEZ Units). For exports made between October 1, 2024, and October 9, 2024, the existing rates, as mentioned in Notification No. 70/2023 dated March 8, 2024, will continue to apply.
The updated rates and eligible items under Appendix 4R and 4RE will be available on the DGFT portal.
The extension of the RoDTEP scheme is expected to provide continued relief to exporters by refunding embedded taxes and duties, which are not otherwise refunded through any other mechanism. By extending the benefits for DTA units until 2025 and for SEZ and EOU units until the end of 2024, the government is reinforcing its support for these key export sectors during a challenging global economic environment.
The revised rates and the potential adjustments to scheme benefits will be critical in ensuring that India’s export sector remains globally competitive while adhering to the government’s fiscal constraints. This notification underscores the government’s strategic efforts to enhance the Make in India initiative by providing a favorable export environment through RoDTEP. With the new rates set to take effect from October 10, 2024, Indian exporters must stay informed about the latest updates and ensure compliance with the revised regulations to maximize their benefits under the scheme.
