India changes schedule of RoDTEP; may affect cotton and other T&A items

Effective May 1, 2023, India has changed the list of RoDTEP (Remission of Dutys or Taxes on Export Products) scheme. The Ministry of Trade and Industry has issued a notice to add 149 tariff lines at 8-digit level and delete 52 tariff lines from the RoDTEP roadmap. The change affects cotton and some other textile and clothing items (T&A).

The government issued a notice Monday that it has made additions and changes to Schedule 4R effective May 1. The details of the HS codes and the RoDTEP rates/value caps are available on the DGFT website. These changes were made to align the RoDTEP list with the first table of the Customs Tariff Law as per the passage of the Finance Law 2023.

The North India Textile Mills Association (NITMA) has announced via a tweet that Annexure 4R has been updated to include new tariff lines and remove certain others affecting some textile and apparel items.

The change includes five tariff lines under HSN code 5201 (cotton fiber). Tariff line 52010021 (for staple lengths not exceeding 20.0 mm) will have RoDTEP rates of 3.1 percent, with a ceiling of ₹1.6 per kg. Similarly, tariff lines 52010022, 52010023, 52010024 and 52010025 have the same rates and value ceiling, with each tariff line representing staple fibers for different lengths. Tariff headings 54021100 (for aramids), 54025900 and 57023990 have RoDTEP rates of 1% of the FOB value of the export shipment.

NITMA announced that tariff lines 52010020, 54021110 and 54025990 related to the textile and clothing sector have been removed from the list.

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