The exporters’ community was desperately waiting for notification of RoDTEP rates for over last eight months since its announcement on 31.12.2020. However, there is high uncertainty arising for a large segment of exporters as the notified guidelines have excluded various key export segments from the purview of the RoDTEP Scheme, such as the exports from SEZs/EOUs, against Advance Authorization, DIFA, from non-EDI ports and bonded warehouses u/s 65 of Customs Act, 1962 which are crucial for Indian economy.
Meanwhile, the erstwhile MEIS (Merchandise Exports from India Scheme) regime was also applicable on such exports and entailing the cost-competitiveness to Indian exporters. In fact, MEIS scheme gave the necessary impetus to Indian exporters to compete in the global market, resulting in net increase of exports in last couple of years.
Various industry associations and export chambers like FIEO, EEPC, FIMI, ISA, AAI etc. have appealed to the government to revisit the RoDTEP guidelines for inclusion of certain export segments which have been currently excluded. They need the support of RoDTEP to be successful contributors to the economy.
SEZ/EOUs contribute to over 30% of the country’s exports and are bearing the high unrebated taxes and duties. All exporters of these, now excluded product groups even made shipments under RoDTEP and got notional RoDTEP rates in their shipping bills. Their exclusion now is a deep blow to the exports sector.
Moreover, the Advance Authorization scheme only provides relief w.r.t Basic Custom Duty on import of inputs which are physically incorporated in export products and does not provide complete zero-rating of the exports. Even after availing of this scheme, the exporters still have to incur several costs, mainly in the form of direct taxes for electricity, freight, fuel etc which will get embedded with the exporter’s cost if not remitted under RoDTEP.