Fabrics & Processing | Fibres and Yarns | Import/Export

RoDTEP export benefits enhanced for certain Textile goods – SIMA hails

Published: January 12, 2023
Author: TEXTILE VALUE CHAIN

The Government of India introduced the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, a WTO-compliant export benefit for refund of embedded duties and State levies for all the goods exported from the country, with effect from 1st January 2021.  Earlier, the Government had introduced Scheme for Rebate of State and Central Taxes and Levies for export of Garments and Made-ups (RoSCTL) with effect from 7th March 2019, refunding the embedded taxes and levies, the period of which has been extended upto 31st March 2024.  Under the RoDTEP Scheme, all other textile products were covered with suitable rates and value cap based on the incidence of duties and levies furnished by the industry.  

  RoDTEP / RoSCTL benefits have considerably enhanced the global competitiveness of the textiles and clothing products by avoiding export of embedded taxes and levies. The rates declared with effect from 1st January 2021 were on the lower side for certain key textile products such as man-made fibres, yarns, fabrics, cotton knitted fabrics, etc.  Now, the Government has enhanced the rates for all such deserving products, based on the recommendations made by RoDTEP Committee.

In a Press Release issued here today, Mr.Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA), has thanked the Hon’ble Prime Minister, Shri.Narendra Modi, Hon’ble Union Minister of Finance, Smt.Nirmala Sitharaman and Hon’ble Minister of Commerce, Industry & Textiles, Shri.Piyush Goyal for considering the representations made by the Export Promotion Councils, industry Associations including SIMA and enhancing the rates based on the incidence of duties and taxes.  

  SIMA Chairman has said that the cotton woven fabric was eligible for 4.3% RoDTEP rate while the cotton knitted fabrics were extended only 1%.  He stated that the RoDTEP rates for Lycra blended knitted fabric has been increased from 1% to 2.5% and for 100% cotton knitted fabric the rate has increased from 1% to 3%.  Mr.Ravi Sam said that the revised RoDTEP rates for the exports made between 16.1.2023 and 30.9.2023 has come as Pongal Bonanza for the knitted fabric exporters, who are facing crisis owing to various external factors including global economic slowdown.  

SIMA Chief has thanked the Government for enhancing the rates for several products including denim, polyester staple fibre spun yarn and also the rate and value cap for viscose rayon spun yarn from 0.9% to 2.5% with a value cap of Rs.6/- per kg.  He has also said that RoDTEP for woven fabrics of artificial staple fibre has been increased from 1.2% to 2.5%.  

  Mr.Ravi Sam has stated that the enhanced RoDTEP rates will boost the exports and align with the Production Linked Incentive Scheme announced by the Government thereby enhancing the global competitiveness of Indian textiles & clothing products.

Related Posts

Policybazaar Makes the Ultimate Dream of Owning One’s Own House a Reality with the Successful Completion of Jeeto Apna Ghar 3.0