We shared booklet detailing basic concepts, procedures and key issues relating to Remission of Duties and Taxes on Exported Products (‘RoDTEP’) Scheme. We highlighted that exports made by Advance Authorization (‘AA’) holders, Export Oriented Units (‘EOU’) and Special Economic Zone (‘SEZ’) units are not entitled for the benefit of RoDTEP Scheme and RoDTEP rates may be subsequently decided by RoDTEP Committee.

In this regard, we wish to apprise you that the Government vide Order F. No. 605/14/2021-DBK/758-771 dated October 18, 2021, has constituted the Committee for determination of RoDTEP rates on exports made by AA holders / EOU / SEZ units.

This Committee shall perform following functions:

– Interaction with Ministries, Export Promotion Councils, Trade Bodies etc. to understand their views on RoDTEP rates for exports made by AA holders / EOU / SEZ units;

– Working out modalities for calculation of duties, taxes and levies (including prior stage cumulative taxes) embedded in export products and recommending ceiling on RoDTEP rates for such exporters; and

– Submission of supplementary report on issues relating to rates already notified for removal of apparent errors/anomalies

For performing above-mentioned functions, the Committee shall determine proper methodology, conduct field visits, understand relevant process and keep proper documentation for its suggestions. The Committee would submit its report to Government within 8 months.

NITYA Comments: This is good news for AA holders / EOU / SEZ units that Government is considering allowing RoDTEP benefit on exports made by them. Another positive aspect of the Committee is it will consider errors/anomalies in RoDTEP rates already notified. However, time limit of 8 months for the Committee to conclude its work is significantly long and the Committee should complete its work at the earliest.