The Federation of Indian Export Organisations (FIEO), Southern Region, has welcomed the announcement on the RoDTEP Scheme effective from January 1 for all export products. However, exporters are in the dark on how to compute the benefits of the scheme in the new orders as the rates are yet to be notified, said Israr Ahmed, regional chairman of the Federation.
Exporters face some key issues, including inadequate availability of containers, freight charges, release of the required MEIS benefits, etc. These are adding to the operational costs of exporters.
“As the rates are yet to be notified, exporters are in dark on how they compute the benefit of the Scheme for quoting for new orders. Hence, he requested the government for announcement of all the RoDTEP rates as soon as possible. Considering the herculean task faced by the RODTEP committee of going through the calculation for each product segment by HS code, the FIEO Regional Chairman also suggested for rates to be notified at four digits, which will also reduce the time and any classification disputes,” said a press release from the Federation.
He also sought extending the RoDTEP benefit to those operating under Advance Authorisation and to export oriented units and job working units for export orders. These units too procure other domestic inputs and bear taxes in transportation of goods both, for imports and exports. Therefore, exporters operating under such schemes should not be deprived of the benefit of RoDTEP, he said. The FIEO sought clarification on the guidelines of the scheme.
Mr. Ahmend appealed to the government for special focus on the MSMEs and said the government should allow automatic approval of RoDTEP for MSME thereby simplifying the application procedures.
