Indian gov't extends duties remission scheme to support exporters

NEW DELHI, Sept. 26 (Xinhua) -- The Indian government on Tuesday extended support under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) till June 30 next year at the same rates to the existing export items, according to a statement of the Ministry of Commerce and Industry.

"This will help our exporting community to negotiate export contracts in the present international environment on better terms," added the statement.

The scheme, which is World Trade Organisation (WTO) compatible, was introduced by the federal government as a duty remission scheme on exports and was implemented with effect from Jan. 1, 2021. It was earlier notified till this month end.

It provides a mechanism for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism at the central, state, and local level, but were incurred by the export entities in the process of manufacture and distribution of exported products.

The scheme extended a support of 270.18 billion Indian Rupees (around 3.24 billion U.S. dollars) for the 27-month period till March 31, 2023.

It operates under a budgetary framework. A budget of 150.70 billion Indian rupees (around 1.8 billion U.S. dollars) is available to support 10,610 harmonized system lines at the 8-digit level for the financial year 2023-24, the statement added.