The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has considerably enhanced the global competitiveness of textile and clothing products by avoiding export of embedded taxes and levies. So says the Southern India Mills Association (SIMA).

The rates declared with effect from January 1, 2021, were on the lower side for certain key textile products such as manmade fibers, yarns, fabrics, cotton knitted fabrics etc. Now, the rates have been enhanced for several productsincluding denim and polyester staple fiber spun yarn.

RoDTEP is a WTO-compliant export benefit for refund of embedded duties and state levies for all goods exported from the country, with effect from January 1, 2021. Under the RoDTEP scheme, all other textile products were covered with suitable rates and value cap based on the incidence of duties and levies furnished by the industry.

RoDTEP rates for lycra blended knitted fabric has been increased from one per cent to 2.5 per cent and for 100 per cent cotton knitted fabric the rate has increased from one per cent to three per cent.SIMA says the revised RoDTEP rates have helped knitted fabric exporters, who are facing a crisis owing to various external factors including the global economic slowdown.