Indian panel to fix rates for RoDTEP to submit report soon

09 Jan '21

2 min read

Pic: Shutterstock

A committee set up under the chairmanship of former union secretary G K Pillai to fix ceiling rates under the Remission of Duties and Taxes on Exported Products (RoDTEP), a duty refund scheme for exporters, is expected to submit the report in the next few weeks, according to finance secretary Ajay Bhushan Pandey, who recently said the rates would be notified immediately after that.

"The G K Pillai committee has given a part report. Now the remaining report is expected within the next few weeks and as soon as the report comes, we will be able to notify RoDTEP rates. But those rates will be effective from January 1, 2021," he was quoted as saying by a news agency.

The scheme would refund to exporters the embedded central, state and local duties and taxes that were so far not being rebated or refunded and were, therefore, placing India's exports at a disadvantage.

The refund would be credited in an exporter's ledger account with customs and used to pay basic customs duty on imported goods. The credits can also be transferred to other importers.

An exporter desirous of availing the benefit of the RoDTEP scheme would have to declare his/her intention for each export item in the shipping bill or bill of export.

Availability of benefits under RoDTEP would be subject to the conditions, restriction, ineligibility and fulfilment of procedural requirements as notified by the government.

The new scheme is replacing the Merchandise Export from India Scheme.

The government approved the RoDTEP scheme last March for reimbursement of taxes and duties to exporters, with a view to give a boost to the country's dwindling outbound shipments.

The country's exports declined by about 16 per cent to about $200 billion during April-December this fiscal.

Fibre2Fashion News Desk (DS)

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