The All India Importers Exporters Association (AIIEA) has called upon the Central government to extend the benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to exporters working under the Duty-Free Import Authorisation (DFIA) scheme, reasoning that such a move will place them back on the competitive producers’ map. The association added that it would provide a competitive edge, enhance the competitiveness of exporters in terms of cost, and enhance India’s merchandise export potential.
Unequal Treatment Raised
The All India Indirect Taxes Association (AIIEA), in a memorandum to the Ministry of Commerce and Industry, stated that exporters availing the DFIA scheme will miss out on the benefits of the RoDTEP scheme, and exporters of goods under other export promotion schemes continue to avail the scheme. The Association noted that this has led to an imbalance that disrupts the pricing of products in the international market.
DFIA allows exporters to import inputs without paying customs duty, provided that they fulfil certain export obligation conditions. The RoDTEP scheme is a reimbursement mechanism for customs duty and taxes which exporters have paid. The AIIEA has pointed out that denying RoDTEP benefits to DFIA scheme exporters goes against the idea of creating a neutral tax regime for exports.
Push For Export Competitiveness
The organisation stated that the wider strategy on exports by the government aims to improve India’s role in international trade, but the fact that they have excluded a section of exporters from the remission scheme defeats the purpose.
It further noted that a significant number of exporters who depend on the DFIA scheme are in businesses that are facing increasing competition worldwide and raising input costs. AIIEA said that expanding the coverage of RoDTEP will help reduce the cost burden on exporters and boost export volumes. The exporters' organisation has urged the government to reconsider the current policy and involve DFIA exporters under the RoDTEP coverage. |
