India's Aluminium Exporters Seek RoDTEP Exemption

The Aluminium Association of India (AAI) has urged the government of India to exempt aluminium products from a recent 50% cut in Remission of Duties and Taxes on Exported Products (RoDTEP) rates. The AAI argues that this cut, which reduced benefits from approximately 3% to 1.5% for Domestic Tariff Area (DTA) units and from 2.2% to 1.1% for Special Economic Zone (SEZ) units, will severely impact the competitiveness of Indian aluminium exporters in global markets. India's aluminium exports, accounting for nearly 2% of the country's total goods exports, already face significant pressure from international trade barriers such as the European Union's Carbon Border Adjustment Mechanism (CBAM), 50% duties in the United States under Section 232 tariffs, and increased customs duties in Mexico. Additionally, expanding Chinese-backed aluminium production capacities in countries like Indonesia are intensifying global competition. The AAI has submitted detailed data to the India===Directorate General of Foreign Trade (DGFT), estimating actual unrebated taxes on aluminium exports to be around 8-9% for DTA units and 6-7% for SEZ units, and has requested that future RoDTEP rates be fixed based on these actual tax burdens.