Commerce Ministry Plans To Extend RoDTEP Scheme Benefits To SEZ Units

New Delhi, Feb 19 (KNN) The commerce ministry has announced its decision to broaden export incentives under the RoDTEP scheme to encompass companies operating within Special Economic Zones (SEZs) and Export-Oriented Units (EOUs).

This directive, conveyed to the Director General of Foreign Trade (DGFT) on February 16, is anticipated to prompt an amendment to the foreign trade policy by the DGFT in the near future, reported BS.

The memorandum from the commerce ministry also suggests that with the implementation of ICEGATE (Indian Customs Electronic Data Interchange Gateway) in SEZs, there's a likelihood of extending the RoDTEP scheme to these zones as well.

In August 2021, the government unveiled the tax refund rates for the RoDTEP scheme, covering 8,555 products ranging from marine goods to yarn and dairy items.

However, SEZs and EOUs were initially excluded from this scheme, prompting demands from the industry for their inclusion.

Under the RoDTEP scheme, exporters receive refunds on various central and state duties, taxes, and levies imposed on input products. Currently, RoDTEP rates range from 0.3 per cent to 4.3 per cent.

ICEGATE, managed by the Central Board of Indirect Taxes and Customs (CBIC), serves as the national portal of Indian Customs, facilitating electronic filing services and acting as an interface between trade users and the customs department.

The primary objective of RoDTEP is to refund taxes and duties not rebated under other schemes, covering various central, state, and local duties incurred in the manufacturing and distribution of exported products.

However, certain exports, including those from SEZs, EOUs, Electronic Hardware Technology Parks (EHTP), Biotechnology Parks (BTP), and Customs bonded warehouses, are currently excluded from RoDTEP benefits.

Additionally, exports under Advance Authorisation and re-exported imported goods are also not covered under RoDTEP.

(KNN Bureau)