Home / Economy / RoDTEP benefits extended to drugs, chemical, steel sectors

NEW DELHI : The commerce ministry extended the scope of its flagship export promotion scheme, RoDTEP or Remission of Duties and Taxes on Exported Products, to the chemicals and pharmaceuticals sectors and exports of articles of iron and steel.

The expanded list of items will be applicable for exports made from 15 December.

A statement from the ministry said that it was a long-standing demand of the industry which has been accepted and will go a long way in boosting India’s exports in the global markets, generating employment and contributing to the overall economy.

On 25 November, Mint reported that the commerce ministry is planning to extend its flagship export promotion scheme to pharmaceuticals, steel and organic and inorganic chemicals.

“The Centre further expanded the scope of the RoDTEP scheme by including exports made from the chemical sector, pharmaceuticals sector and exports of articles of iron and steel under chapters 28, 29, 30 and 73 of ITC(HS) schedule of items," it said.

The RoDTEP scheme rebates or refunds the embedded central, state and local duties and taxes to the exporters that were so far not being refunded. The scheme is being implemented from 1 January 2021, and the rebate is issued as a transferable electronic scrip by the Central Board of Indirect Taxes and Customs .

RoDTEP is based on the globally accepted principle that taxes should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.

The move is aimed at boosting exports at a time they have been impacted due to the global economic slowdown and demand slowdown in major markets such as China and the European Union.

India’s merchandise exports plunged 16.5% in October.

“In the present times, when exports are facing headwinds on account of signs of recession in some of the developed markets and supply chain disruptions on account of the Russia-Ukraine conflict, extension of RoDTEP to uncovered sectors like chemicals, pharmaceuticals and articles of iron and steel is likely to enhance the export competitiveness of these sectors," the ministry said in a statement.

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