Relief for Exports: Tax Refund Scheme Extended to SEZs, EoUs and AA Holders

The government has reinstated Remission of Duties and Taxes on Exported Products (RoDTEP) benefits for exporters operating under SEZs, EoUs and Advance Authorisation schemes.

This move restores refund eligibility after a 6-month gap and aims to support export competitiveness amid evolving global trade dynamics.

Tax Refund Scheme Now Available to SEZs, EoUs and AA Holders

Tax refund scheme RoDTEP has now been extended to cover Export Oriented Units, Special Economic Zones and Advance Authorisation holders. This move by the government reintroduces key incentives to these export categories after a gap of nearly 6 months.

Notification from the Directorate General of Foreign Trade

The Directorate General of Foreign Trade issued a notification confirming that the RoDTEP scheme benefits for SEZs, EoUs and AA holders will be applicable from June 2025. This reinstatement comes after the earlier benefits expired on December 31, 2024.

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Background on RoDTEP and its Objectives

The Remission of Duties and Taxes on Exported Products scheme is aimed at refunding various embedded taxes and levies at the central, state and local levels. These are costs that are otherwise not refunded under any existing mechanism but add to the overall cost of exported products.

Replacement for Earlier Export Incentive Programme

RoDTEP replaced the Merchandise Exports from India Scheme after the latter, along with other similar schemes, faced challenges at the World Trade Organisation. The RoDTEP framework was introduced in 2021 and is structured to remain compliant with global trade norms.

Coverage and Refund Rates under RoDTEP

The scheme currently includes 10,642 export products, with refund rates ranging from 0.3% to 3.9% of the export value. These rates are determined by the embedded taxes specific to each product and its associated cost structure.

RoDTEP Incentives and How They Are Offered

The benefits under the scheme are offered in the form of duty credit scrips. These scrips are transferable and can be used by exporters to pay import duties. Alternatively, they can be sold in the market, thereby providing exporters with immediate liquidity.

Conclusion

RoDTEP operates under a dedicated budgetary allocation and has seen multiple extensions since its introduction. The last extension was granted on September 30, 2024, and was valid for one year. However, the extension for SEZs, EoUs and AA holders had only continued until the end of 2024. Their re-inclusion from June 2025 restores parity with other export segments.

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