DGFT Notification on RoDTEP Scheme Amendment and Rate Revisions

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DGFT Notification on RoDTEP Scheme Amendment and Rate Revisions

Notification No. 70/2023

Dated- 8th March, 2024

The Ministry of Commerce & Industry of India, headed by the Directorate General of Foreign Trade (DGFT), through Notification No. 70/2023, dated 8th March 2024 marks amendments to the Foreign Trade Policy, 2023, for Advance Authorisation (AA) holders, Export Oriented Units (EOU), and Special Economic Zones (SEZ) units.

It is an important notification that extends the RoDTEP (Remission of Duties and Taxes on Exported Products) support for exports made by certain categories of exporters.

Detailed Analysis

Expansion of RoDTEP Assistance: The notification entails the removal of certain ineligible supplies or categories within the scheme, widening the coverage of RoDTEP assistance. Specifically, it alters Para 4.55 of the Foreign Trade Policy 2023 by removing certain numbers that were previously deemed ineligible, effective from March 11, 2024.
Revision of Rebate Provisions: A significant change has been made to Para 4.54, modifying the provision for granting rebates to eligible exporters. This revision includes a specified rate as a percentage of the Free on Board (FOB) value, along with a capped value per unit of the exported item.

Notably, this provision now encompasses exports produced by Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zone (SEZ) units under Appendix 4RE, ensuring tailored support for these entities within the scheme.

Introduction of Para 4.59A: Newly added, Para 4.59A, outlines the eligibility criteria for RoDTEP export items, rates, and per unit value caps, specifically for products manufactured by AA holders (excluding Deemed Exports), EOUs, and SEZ units. This addition indicates a concerted effort to streamline the support mechanism for these categories.
Implementation Dates and Phases: The notification specifies the implementation dates for exports under Appendix 4RE, with a notable differentiation between the timelines for AA holders/EOUs and SEZ units. The latter’s eligibility starts upon integration with the Customs Automated System (ICEGATE), showcasing a phased implementation approach.
Revisions and Prolongation: Additionally, the notification supersedes a previous one, extending the applicability of the RoDTEP scheme until September 30, 2024. This extension underscores the government’s dedication to bolstering the export sector, especially considering budgetary constraints and the necessity to align with international trade norms.

Conclusion

The recent notification from the DGFT represents a notable advancement in strengthening India’s export incentives within the RoDTEP scheme.

By expanding assistance to Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zone (SEZ) units, the government intends to boost competitiveness and relieve exporters of tax burdens.

This tactical manoeuvre is anticipated to yield favourable outcomes for India’s foreign trade scenario, fostering growth and durability in the export domain.

To view the DGFT notification, click here.

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