Rates for the much awaited scheme, Remission of Duties and Taxes in Export Products (RoDTEP), have been announced finally by the Union Government. These will be effective from 1 January 2021.
Depending on products and their units, the rate ranges from 0.5, 0.7, 0.9, 1, 1.1, 1.2, 1.6 1.7, 2, 2.4, 2.5, 2.7, 3.1, 3.5, 3.8, 4.3 (in percentage).
Under the RoDTEP, various central and state duties, taxes, levies imposed on input products amongst others are refunded to exporters to boost exports.
The cotton yarn and fabrics were hitherto eligible only for duty drawback and from now on, the cotton yarn will get 3.8 per cent RoDTEP with a cap of Rs. 11.40 per kilo and woven fabric will get 4.3 per cent with a cap of Rs. 3.4 per square metre.
This would give impetus and opportunity for India to increase exports of these products, convert the raw cotton being exported into value-added products, increase foreign exchange and create more jobs.
The knitted fabric has been given only 1 per cent.
Complete list of rates on all textile products
Union Textiles Minister Piyush Goyal tweeted, Government notifies RoDTEP Scheme Guidelines & Rates for boosting exports by creating a level playing field for exporters leading to greater competitiveness & increased employment generation. Will enable ‘zero-rating’ of exports for building an ‘Aatmanirbhar Bharat’.
Government notifies RoDTEP Scheme Guidelines & Rates for boosting exports by creating a level playing field for exporters leading to greater competitiveness & increased employment generation.
Will enable “zero-rating” of exports for building an “Aatmanirbhar Bharat”. pic.twitter.com/j29KnDpuVr
— Piyush Goyal (@PiyushGoyal) August 17, 2021
Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA) hailed the announcement of rates for yarns and fabrics. He requested the Government to review the rate for knitted fabric based on modular RoDTEP calculation. “The knitted fabric made out of yarn should get higher benefit than the yarn which has been taken care in the case of woven fabric,” he said.
Sanjay Jain, MD of TT Limited, believes that these rates are highly favourable for textiles especially fibre, yarn and fabric, and so it will give a big impetus to exports.
ROTDEP announced on exports – revolutionary step – Very favourable for textiles – fibre, yarn & fabric – will give a big impetus to exports. Thank you @PiyushGoyal @PMOIndia___ @smritiirani
— Sanjay K Jain (@TTsanjayjain) August 17, 2021