RoDTEP: Govt restores export benefits for SEZs and EOUs
New Delhi: The government on Monday said benefits under the RoDTEP scheme for exports of goods manufactured in special economic zones and export-oriented units are restored from June 1 this year.
Under the Remission of Duties and Taxes on Exported Products (RoDTEP), various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters. The current RoDTEP rates are in the range of 0.3-4.3 per cent.
“The support under the RoDTEP Scheme for exports of products manufactured from AAs (advance authorisations), SEZs (special economic zones), and EOUs (export oriented units) is restored with effect from June 1, 2025,” the Directorate General of Foreign Trade (DGFT) said in a notification.
Welcoming the decision, the Federation of Indian Export Organisations (FIEO) said this positive step will go a long way in improving the global competitiveness of Indian exporters operating under these key export promotion schemes.
FIEO President S C Ralhan said that the industry has been earnestly seeking parity in RoDTEP coverage for all export segments, particularly those contributing significantly to India’s value-added exports.
“The extension of RoDTEP benefits to Advance Authorisation, EOU, and SEZ units reflects the government’s recognition of their critical role in India’s export ecosystem. The restoration will not only ensure level playing field for these entities but also boost price competitiveness of their products in international markets,” Ralhan said.
He added that this is vital support at a time when Indian exporters are navigating intense global competition and demand uncertainties. “ It will certainly help in pushing exports and improving India’s share in global trade,” he said urging the Government to consider making this restoration effective from February 7, 2025, so that there is no gap in RoDTEP coverage.
As per the earlier notification, the existing RoDTEP benefits for these entities are applicable only up to February 6, 2025.
“A seamless transition would ensure stability and predictability for exporters and avoid any disruption in trade planning or pricing,” Ralhan said.
RODTEP is not an incentive, but a World Trade Organization-compatible reimbursement of duties and taxes paid during the production of export goods.
The scheme covers a wide range of sectors, including textiles, engineering goods, chemicals, pharmaceuticals, marine products, and more.
India’s exports rose 9.03 per cent to $38.49 billion in April, the highest in six months, driven by healthy growth in sectors such as electronics and engineering goods, while the trade deficit widened to a five-month high of $26.42 billion.
