Govt extends export benefits under RoDTEP

• The DGFT said in a trade notice that the Interest Equalisation Scheme for pre and post shipment rupee export credit has been extended by three months.

Highlights:

• The Director General of Foreign Trade (DGFT) announced that exporters will continue to benefit from the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.

Extension of Interest Equalisation Scheme:

• The DGFT also confirmed the extension of the Interest Equalisation Scheme for pre- and post-shipment rupee export credit by three months. This scheme, designed to aid exporters by lowering credit costs, will now be available till December 31 for MSMEs.

RoDTEP Scheme: Detailed Breakdown:

• For Domestic Tariff Area (DTA) units, the RoDTEP scheme has been extended by a year, benefiting them until September 30, 2025.
• For Authorisation holders, export-oriented units, and special economic zone (SEZ) units, the scheme will be applicable until December 2024.
• The notification also mentioned that the scheme might be adjusted to ensure that the financial outlay remains within the approved budget.

New RoDTEP Rates:

• The new RoDTEP rates, as recommended by the RoDTEP Committee, will take effect from October 10. However, the existing rates will apply from October 1 to 10.
• MSMEs' Cap on Interest Equalisation Scheme:
• While the Interest Equalisation Scheme has been extended, an MSME unit can only avail a maximum benefit of ₹50 lakh for the 2024-2025 period under this scheme.

Prelims Takeaways:

• Director General of Foreign Trade (DGFT)
• Domestic Tariff Area (DTA) units