Welcoming the announcement of the Remission of Duties and Taxes on Exported Products (RoDTEP) rates for the merchandise sector, Dr A Sakthivel, President, FIEO said that the much-awaited rates will help in easing the liquidity of the exporters, ensuring predictability and stability thus helping competitiveness of exports over a long-time horizon. He said that he expects the rates are quickly uploaded in the system so that exporters may generate their scrips instantly for utilizing the same either for duty free imports or transferring it to increase their cash flow. FIEO said that RoDTEP rates, which provides zero rebating of exports, are WTO compatible and thus will continue for long time until all the products & services are brought within the ambit of GST and embedded incidence is completely neutralized. The RoDTEP coupled with GST refund and Duty Drawback ensure that our export products do not contain any incidence of taxes and duties, added President, FIEO.

Hailing the decision of the Government to extend the RoDTEP coverage to Advance Authorisation/DFIA holders, EOU and SEZ units from a date to be notified later, President FIEO urged the Government to also extend them the benefits from 1^st January, 2021. He also pleaded for coverage of various sectors such as Pharma, Organic & Inorganic chemicals, Article of Iron & Steel and Iron & Steel under RoDTEP immediately with effect from 1^st January, 2021.

Explaining about the low rates for many sectors, Dr Sakthivel said that since the rates are fixed on the basis of the data furnished by the industry, which was also affected due to the pandemic, the rates may be reviewed if more comprehensive and updated data is furnished by the industry. Moreover, there is a provision for an annual review of the rates factoring the changes in the taxes & duties in respect of parameters based on which such rates are fixed.

Dr Sakthivel thanked the Hon'ble Prime Minister, Commerce & Industry and Textiles Minister and the Finance Minister for providing RoDTEP support to exporters so as to impart competitiveness to exports more so at a time when exports growth is moving in northward direction offsetting the pandemic.

President, FIEO said that exports are on course to achieve US$ 400 Bn in the current fiscal but logistics challenges particularly unavailability of containers, shut out by shipping lines and high freights pose a serious challenge. He requested the Government to take suitable measures so that these hiccups can be overcome.

Also read: Guide to IEC (Importer Exporter Code): FAQs

To explore business opportunities, link with me by clicking on the 'Invite' button on our eBiz Card.

Image source: shutterstock.com

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.