Industry Seeks RoDTEP Extension for SEZs and EOUs till September End

08 Jan 2025 CW Team

Amid global economic uncertainties, the Indian export industry has urged the government to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for export-oriented units (EOUs) and special economic zones (SEZs) until the end of September.

Currently, the RoDTEP scheme is available for exports from the domestic tariff area (DTA) until September 30. However, for SEZs, EOUs, and advance authorisation (AA) holders, the scheme expired on December 31 of the previous year.

The RoDTEP scheme, introduced in 2021, reimburses exporters for embedded non-creditable central, state, and local levies paid on inputs, with the aim of boosting India’s exports. Although initially limited in scope, the scheme was expanded on March 11, 2024, to include SEZs, EOUs, and AA holders to mitigate the impact of global economic challenges on exporters.

In a letter addressed to the expenditure and commerce secretaries, the Export Promotion Council for EOUs and SEZs (EPCES) expressed its view that denying RoDTEP benefits to specific exporter categories—EOUs, SEZs, and AA holders—is unjustified.

EPCES further highlighted that if budgetary constraints exist, the scheme could be restricted to specific sectors and products, rather than excluding certain exporters. They noted that covering EOUs and SEZs under RoDTEP would require limited funding, as exports from these units account for about 15 per cent of total merchandise exports.

Additionally, the Council proposed that if financial limitations persist, the scheme should be extended to all exporters only until March 31.

For the financial year 2024-25, the Union Budget has allocated Rs.16,575 crore for the RoDTEP scheme.

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