Recently, we shared our update titled NITYA Insight | Issue 190 | RoDTEP Background and way forward discussing background and recent developments under Remission of Duties and Taxes on Exported Products Scheme (‘RoDTEP Scheme’).

In furtherance to above, we wish to inform you that DGFT has issued Trade Notice No. 32/2020-2021 dated October 28, 2020 (‘Trade Notice’). DGFT has asked associations and exporters of products falling under Chapter 86, 88 and 89 (‘specified Chapters’) of the Customs Tariff Act, 1975 to urgently submit required data as per the requisite formats. DGFT has also informed that in absence of data, RoDTEP rates for goods falling under specified Chapters may not be notified.

NITYA Comments: 

As per recent news reports, RoDTEP Committee is presently focussing on specific sectors (Readymade Garments, Iron & Steel and Automobiles & Components) for providing benefits under RoDTEP Scheme. However, basis reference of specified Chapters in Trade Notice, it is evident that RoDTEP Committee is analysing other sectors as well. Thus, exporters of goods in other sectors will also be covered under RoDTEP Scheme. 

The exporters of aforesaid sectors, specified Chapters and all other products should pro-actively submit data to RoDTEP Committee to ensure that RoDTEP rate is fixed at the earliest, to enable transition from MEIS to RoDTEP Scheme. 

Importantly, the exporters while undertaking calculations should include all duties and taxes whose cost is presently embedded in cost of export products. For example, in freight cost, exporters should not only consider taxes on fuel but also ITC not eligible to Goods Transport Agency operating under reverse charge. Such calculations are complex and yet significant. The exporters can consider seeking professional help for doing such workings.  

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