6-month extension for RoDTEP on pharma, chemicals, steel

The government is contemplating a six-month extension for the Remission of Duties and Taxes on Exported Products (DoDTEP) scheme. This potential extension is targeted at exports from the iron and steel, chemicals, and pharmaceutical sectors.

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The government is considering a six-month prolongation of the Remission of Duties and Taxes on Exported Products (DoDTEP) scheme. This extension would specifically cover exports from the iron and steel, chemicals, and pharmaceutical sectors.

The RoDTEP scheme’s coverage for exports currently spans until the end of September. The industry has put forth a request for its extension by an additional six months, seeking its continuation until the conclusion of March 2024. This appeal was also brought up during a recent meeting between the Ministry of Commerce and Industry and representatives from export promotion councils on Tuesday evening.

The purpose of the meeting was to address the recent decline in exports over the past few months and to formulate strategies for their recovery.

The iron and steel, chemicals, and pharmaceutical sectors were introduced to the scheme later than others. The scheme’s objective is to reimburse the duties, taxes, and levies at the central, state, and local levels that are included in the cost of products intended for exports. This scheme has replaced the Merchandise Exports from India scheme, which, along with various other export promotion schemes, faced a successful challenge by the US at the World Trade Organization (WTO).

The incentive is provided through transferable duty credit scrips, which exporters can utilize to cover import duties or trade in the market.

Initially, when the RoDTEP scheme was introduced in late 2020 and officially announced in August 2021, these specific sectors were excluded due to their strong performance in exports.

last year as exports encountered challenges attributed to economic downturns in certain developed markets and disruptions in supply chains due to the Russia-Ukraine conflict, these sectors were subsequently included in the scheme.