Hewa delegates Anant Srivastava and Vikas Singh Chauhan met Prime Minister Shri Narendra Modi’s Sherpa to G7&G20 Shri Suresh Prabhu, Hon’ble MP Rajya Sabha and Former Union Commerce and Industry Ministry at New Delhi on 14.01.2021 and informed him about sudden stoppage of Rosctl scheme to textile exporters and roll out of new RoDTEP scheme from 01.01.2021 without announcement of rates even after 2 weeks.
Below is the detail of letter given:
Date and Ref .no: 14.01.2021 /HW104
Shri Suresh Prabhakar Prabhu Ji,
Hon’ble MP Rajya Sabha, Former Union Commerce and Industry Minister,
India’s Sherpa for G-20 and G-7 Countries,
New Delhi, India
Regarding: RoDTEP Scheme should not be restricted by any budgetary constraint.
With due respect and reverence it is submitted that (HEWA) The Home Textile Exporters’ Welfare Association is a non profit association of small and medium Indian Home Textile Exporters working for the well being of small and medium sized exporters.
First of all, we the office bearers of HEWA wish to congratulate the roll out of new scheme known as RoDTEP (Remission of Duties and Taxes on Exported Products) w.e.f. 01st January 2021 for the welfare of exporters.
As it is well known that the rates for remission under the RoDTEP scheme is yet to be notified by Government of India. It has also been announced that all benefits availed by exporters under the RoSCTL scheme will be curtailed w.e.f. 01.01.2021.
As per the assurance given to the Indian Exporters by the Ministry of Finance vide its Gazettee Notification No. 36/2020 dated 05.10.2020 that RoSCTL scheme will be available to the exporters till 31.03.2021 or until such date the RoSCTL scheme is merged with the Remission of Duties and Taxes on Exported Products scheme, whichever is earlier.
In the wake of above mentioned Notification No. 36/20 Customes, dated 05.10.2020, there was a general understanding amongst Indian Exporters that the RoSCTL scheme will continue till 31.03.2021 or to any other such date prior to 31.03.2021 on which the RoDTEP scheme rates will be notified.
With folded hands it is brought to your kind notice that till today that 14.01.2021, fourteen days have elapsed since the declaration of the RoDTEP scheme and the rates of remission of RoDTEP are not yet notified by Government. Whereas on the other hand the RoSCTL scheme has been stopped w.e.f. 01.01.2021.
In this situation the exporters are facing uncertainty to quote the competitive rates to foreign buyers to fetch new orders.
As we know that post RoSCTL the Indian Exporter have started factoring the rebate or the refund of taxes which he is supposed to receive from the Indian Government, to chalk out various factors directly affecting his costs in his effort to quote rates before the buyer.
Whereas textile exporters from Bangladesh, Pakistan and Vietnam etc. are availing duty advantage upto 10% on account of several FTAs and Preferential Access among the key trading nations.
As per Ministry of Finance Press Release dated 31.12.2020 available on PIB website that RoDTEP scheme would refund to the exporters the embedded Central, State and local duties/taxes that were so far not being rebated/refunded and were, therefore placing our exports at a disadvantage.
In the wake of circumstances quoted above, the HEWA, on behalf of small and medium textile exporters humbly pray before Hon’ble Shri Suresh PrabhakarPrabhuJi,(Prime Minister Sh. NarendraModi’s Sherpa for G-20 and G-7 Countries) for extending cooperation in these testing times so that Indian Textile Exporters can make their best possible contribution towards the cherished goal of ‘AATM NIRBHAR BHARAT MISSION’
a) To continue the RoSCTL scheme to the Indian Exporter till the date when the rate of RoDTEP is notified by Ministry of Commerce based on Dr. G. K. Pillai committee report.
b) To declare the rate of RoDTEP as soon as possible based on actual findings to counter the disadvantage to the textile exporter due to withdrawal of RoSCTL and hence the RoDTEP scheme should not be restricted by any budgetary constraint.