Expressing concern over inequitable treatment of MSME exporters operating under the DFIA scheme compared to those under other export promotion schemes, the All India Importers and Exporters Association has said the denial of RoDTEP benefits to DFIA exporters runs contrary to the scheme’s objectives.
AIIEA has written to the ministries of finance and commerce and industry seeking urgent intervention.
Consequently, DFIA exporters began claiming RoDTEP benefits, and Customs authorities processed these claims without objection, crediting the eligible amounts to exporters’ electronic ledgers, according to a domestic media outlet.
Bochu said DFIA exporters were shocked to receive recovery notices from customs authorities, including the Directorate of Revenue Intelligence, seeking repayment of the RoDTEP benefits already granted.
While DFIA exporters continue to receive benefits under the Rebate of State and Central Taxes and Levies (RoSCTL) scheme applicable to textiles and apparel, similar benefits under the RoDTEP scheme are denied for non-textile tariff items.
Recovery of the RoDTEP amounts from DFIA exporters would have little or no meaningful impact on the government’s finances, but would severely affect the financial health of MSME exporters, many of whom operate with limited working capital, the association said.
AIIEA has already written to the Prime Minister’s Office, the Ministry of Finance and the Ministry of Commerce and Industry seeking urgent intervention.
Fibre2Fashion News Desk (DS)
