Tariffs for RoDTEP likely to be announced in 2 weeks: DGFT

Foreign trade policy offers fiscal incentives under SEIS to several service industries.

Rates for the tax refund scheme for exporters – Remission of Duties and Taxes on Exported Products (RoDTEP) – are expected to be announced within the next two weeks, a senior official said on Friday.

The Director General of Foreign Trade (DGFT), Amit Yadav, said he was working with the finance ministry on the project.

Last year, the government approved the RoDTEP program for the reimbursement of taxes and duties to exporters, with a view to boosting the country’s overseas shipments. The regime has been implemented for all goods, with effect from January 1.

“I have a feeling that in the next two weeks we would be able to have a tariff announcement for RoDTEP,” he said during a PHDCCI webinar.

The Apex exporter body, the Federation of Indian Export Organizations (FIEO), has repeatedly called on the government to announce rates for different sectors under the scheme as a delay would have implications for future exports.

Tariffs are to be notified by the Ministry of Commerce, which would be based on the recommendation of a committee chaired by GK Pillai, former Minister of Commerce and Home Affairs.

Yadav said that due to the COVID-19 pandemic there has been an impact on both tax collection and spending and there is also the revenue challenge.

Regarding India’s Merchandise Export Regime (MEIS), DGFT said it was working with the Revenue Ministry on the issue.

“We proposed to the revenue department that if the MEIS scrips can be released, which can be wrapped up a year later… something (on these lines) that we’re working on,” he said.

The MEIS ended in December of last year, but export problems arose under the program in 2019-20 and 2020-2021.

For 2019-2020, he informed that more than 5000 IEC (import and export code) holders have received their scrips and large amounts have already been disbursed or claimed.

But “there was a problem with exports in 2020-2021 and on that front we are looking at various options. We are working on something that can be kind of a discount, ”Yadav added.

Under MEIS, the government granted tariff concessions based on product and country. Rewards under this program were payable as a percentage of the realized free on board value and MEIS duty credit certificates can be transferred or used for the payment of a number of duties, including customs duty of based.

He added that SEIS (Service Exports from India Scheme) is a “challenge, but we have been batting” and “we are still hoping for an expense for 2019-20… We are pushing the boundaries.”

Foreign trade policy offers fiscal incentives under SEIS to several service industries.

Depending on the nature of the services, the government gives scrips or certificates of credit rights. The program offers a reward of 5 percent or 7 percent of net currency earned and covers service providers located in India.

Regarding the foreign trade policy (FTP), the DGFT sought suggestions from the industry. Due to the pandemic, the policy was extended for six months until September.

“Now we look at it from a different perspective. We are looking at how we can rationalize them (various export programs), how we can introduce new programs able to meet the needs and demand of exports, especially when some of the programs (like MEIS and SEIS) disappear ”, he added. .

In addition, he said the Commerce Ministry is also looking at issues such as export financing and insurance premiums.

On the questions raised by PHDCCI members about the rise in steel prices, he said: “I am aware that the Ministry of Steel is working on this aspect.”

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