In a significant move to bolster India’s export competitiveness, the Government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exporters operating under Advance Authorisation (AA), Special Economic Zones (SEZs), and Export-Oriented Units (EOUs). This reinstatement will take effect from June 1, 2025.

Background: What is RoDTEP?

The RoDTEP scheme, operational since January 1, 2021, aims to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing scheme. These include taxes on fuel, electricity, and transportation, among others. The scheme is compliant with World Trade Organization (WTO) norms. Previously, the RoDTEP benefits for AA holders, SEZs, and EOUs were available until February 5, 2025. Their reinstatement is expected to provide a level playing field for exporters across sectors.

Legal Notification Details

The restoration of RoDTEP benefits has been formalized through Notification No. 11/2025-26 dated May 26, 2025, issued by the Directorate General of Foreign Trade (DGFT). This notification, under the authority granted by the Foreign Trade (Development and Regulation) Act, 1992, and the Foreign Trade Policy 2023, reinstates the benefits for AA holders, SEZs, and EOUs effective June 1, 2025. The updated RoDTEP rates, incorporating newly aligned Harmonized System (HS) codes as per the Finance Act, 2025, are accessible in Appendix 4RE on the official DGFT website:

Implications for Exporters

The reinstatement of RoDTEP benefits is anticipated to have several positive impacts on exporters:

• Enhanced Competitiveness: By offsetting embedded taxes and duties, exporters can price their products more competitively in international markets.
• Broader Coverage: For the financial year 2025–26, the government has allocated ₹18,233 crore under the scheme. This support will cover 10,780 HS lines for Domestic Tariff Area (DTA) exports and 10,795 HS lines for AA/EOU/SEZ exports, ensuring broad-based coverage for diverse sectors of the economy.

Conclusion

The government’s decision to reinstate RoDTEP benefits for AA holders, SEZs, and EOUs underscores its commitment to enhancing India’s export performance. By addressing the concerns of exporters and providing a more equitable incentive structure, this move is poised to strengthen India’s position in global trade.