Restoration of RoDTEP Scheme Benefits
The government has announced the restoration of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme benefits for units operating under advance authorisation (AA), export oriented units (EOUs), and special economic zones (SEZs), effective from June 1, 2025.
Details of the RoDTEP Scheme
- The RoDTEP scheme is designed to refund taxes and duties that are not rebated under any other schemes.
- Benefit rates under the scheme range from 0.3% to 4.3%.
According to the Directorate General of Foreign Trade (DGFT), this move aims to enhance the global competitiveness of Indian exporters operating under these key export promotion schemes.
Current and Future Applicability
- The existing RoDTEP benefits for these entities are applicable only until February 6, 2025.
Impact and Global Trade Context
- The move is expected to help Indian exporters navigate global competition and demand uncertainties.
- India’s merchandise exports rose to a six-month high of 9.03% year-on-year to $38.49 billion in April.
- India is currently negotiating free trade agreements with the US and the EU, having concluded an FTA with the UK.