Govt Extends Rodtep Support For SEZ, EOU Exports

(MENAFN- KNN India) New Delhi, Mar 22 (KNN) According to a recent notification, companies that have exported goods from special economic zones (SEZs) and export-oriented units (EOUs) until February 5 this year can claim benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

This extends the previous deadline which had allowed exporters to seek benefits until December 31, 2024.

The RoDTEP scheme provides refunds for various central and state duties, taxes, and levies imposed on input products, with current rates ranging between 0.3-4.3 percent.

"The support under RoDTEP scheme for exports of products manufactured from AAs (advance authorisation), SEZs and EOUs has been extended upto February 5, 2025," stated the Directorate General of Foreign Trade (DGFT) in a notification issued on March 20.

However, the DGFT has clarified that from February 6 onwards, exports from these categories will no longer be eligible for RoDTEP support.

Meanwhile, exports from the domestic tariff area (outside SEZs and EOUs) will continue to receive benefits under the scheme until September 30 this year.

Trade experts point out that this retrospective extension may result in some exporters who didn't opt for RoDTEP after December 2024 losing out on potential refunds.

It's worth noting that RoDTEP is not an incentive but rather a World Trade Organization-compatible reimbursement of duties and taxes paid during the production of export goods.

The export community is urging the government to announce the scheme's rates and availability for a five-year period to provide greater certainty and stability.

This request comes at a challenging time for the sector, as India's exports fell 10.9 percent in February 2025 compared to the same month in 2024.

The RoDTEP scheme covers a wide range of sectors, including textiles, engineering goods, chemicals, pharmaceuticals, marine products, and more. The estimated outlay for the scheme for 2024-25 is approximately Rs 13,000-15,000 crore.

(KNN Bureau)

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