Indian aluminium producers seek RoDTEP relief

New Delhi: The Aluminium Association of India (AAI), has urged the government to exempt aluminium products from the recent RoDTEP rate cut as it would help Indian exporters remain competitive in the international market.

AAI, the apex body representing the top aluminium producers within the country, in its representation to the Directorate General of Foreign Trade (DGFT), has requested the government to remove aluminium exports from the recent 50 per cent RoDTEP cut, just like the government has already done for agricultural products.

The export support scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), launched in 2021, provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and are not being reimbursed under any other mechanism at the Centre, state or local level.

It also made a plea to the government to fix RoDTEP rates for 2026-27 based on the actual taxes exporters bear, so that aluminium exporters (both regular units and SEZ units) are fairly compensated for the taxes embedded in their products.

The government recently issued a notification cutting RoDTEP rates across sectors by half with immediate effect.

Earlier, aluminium exports were eligible for RoDTEP benefits of around three per cent for Domestic Tariff Area (DTA) units and about 2.2 per cent for SEZ units.