Aluminium Exporters Petition for RoDTEP Exemption

The Aluminium Association of India (AAI) is calling on the government to exempt its sector from a recent cut in the RoDTEP rates, a move they argue is crucial for maintaining competitiveness in the global marketplace. The apex body, which represents India's top aluminium producers, has appealed to the Directorate General of Foreign Trade (DGFT) to retract the 50% RoDTEP rate cut on aluminium exports. They highlighted parallels with agricultural products that received exemptions earlier.

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was launched in 2021 to refund taxes and duties incurred during the manufacturing and distribution of goods. The AAI urges the government to set 2026-27 RoDTEP rates based on actual tax burdens to ensure fair compensation for both regular and SEZ units. This comes as the government halved RoDTEP rates across sectors, affecting the 3% and 2.2% benefits previously enjoyed by aluminium exports from Domestic Tariff Area (DTA) units and SEZ units, respectively.

India's aluminium exports, valued at about USD 7 billion and constituting nearly 2% of the nation's total goods exports, face mounting challenges. These include increased trade barriers, such as the EU's Carbon Border Adjustment Mechanism and other countries' higher tariffs. While global competition intensifies from places like China-backed production in Indonesia, domestic aluminium imports are also on the rise. The AAI has backed its request with detailed data, pointing out that unreimbursed taxes on aluminium exports are around 8-9% for DTA and 6-7% for SEZ units.