Export schemes extended amid West Asia crisis

NEW DELHI: The government Wednesday extended support for exporters by renewing two key schemes and enhancing insurance cover against payment defaults amid the ongoing crisis in West Asia, providing policy stability to the sector.

The Centre extended the duty refund scheme Remission of Duties and Taxes on Exported Products (RoDTEP) and the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exporters of apparel, garments and made-ups by three months to December 31 along with continuing the enhanced insurance cover against payment defaults until March 31, 2027, for export consignments to West Asia under the Export Promotion Mission.

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The three programmes were set to end on September 30. "The RoDTEP scheme is extended and shall apply to eligible exports from DTA (domestic tariff area), AA (advance authorisation), SEZ (special economic zone) and EOU (export oriented unit) units up to December 31, 2026," the Directorate General of Foreign Trade (DGFT) said in a notification. The scheme, launched in 2021, provides a refund of taxes, duties and levies incurred by exporters in the process of manufacturing and distributing goods that are not reimbursed under any other mechanism at the Centre, state, or local level. Refunds under the scheme range from 0.3-3.9%. The extension of the RoSCTL, as per the textiles ministry, will ensure policy continuity and predictability for exporters, while sustaining the competitiveness of India's labour-intensive and value-added apparel and made-ups sector in an increasingly competitive global trading environment," it said. The maximum rate of rebate for apparel is 6.05% and up to 8.2% for made-ups.