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Aluminium Exporters Fight RoDTEP Cut
15 Mar
Summary
- Aluminium Association of India seeks exemption from RoDTEP rate cuts.
- Indian aluminium exports face rising global trade barriers and tariffs.
- EU's CBAM and US Section 232 tariffs pose significant cost increases.
The Aluminium Association of India (AAI) has formally requested the government to exclude aluminium products from the recent 50 percent reduction in RoDTEP rates. This appeal aims to maintain the competitiveness of Indian exporters in the global marketplace. AAI specifically cited the need for similar exemptions as those granted to agricultural products.
The export support scheme, RoDTEP, provides crucial refunds for taxes and duties incurred during product manufacturing and distribution. AAI highlighted that aluminium exports, representing nearly two percent of India's total goods exports at approximately $7 billion, are already under significant pressure. This is due to increasing trade barriers, including the European Union's Carbon Border Adjustment Mechanism (CBAM), which could add 7-50 percent costs.
Further challenges include the United States' Section 232 tariffs, imposing a 50 percent duty, and Mexico's increased customs duties ranging from 10-35 percent starting January 2026. Intensifying global competition also arises from expanding Chinese-backed aluminium production capacities in countries like Indonesia.
AAI stressed that the actual unrebated taxes on Indian aluminium exports are estimated between 8-9 percent for domestic tariff area units and 6-7 percent for special economic zone units. The association also made a plea to fix future RoDTEP rates for 2026-27 based on actual taxes borne by exporters.
