Exports from SEZs and EOUs Now Eligible for RoDTEP Benefits Until February 5, 2025

The Government of India has extended benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for goods exported from Special Economic Zones (SEZs) and Export-Oriented Units (EOUs). According to a recent notification issued by the Directorate General of Foreign Trade (DGFT), exports from these zones and units can claim RoDTEP until February 5, 2025. Previously, the eligibility was set to expire on December 31, 2024.

What Is RoDTEP?

RoDTEP, or Remission of Duties and Taxes on Exported Products, is a scheme designed to reimburse various central and state taxes, duties, and levies levied on exported goods. By offsetting these costs, RoDTEP aims to enhance the global competitiveness of Indian exporters. Key points include:

• It covers duties and taxes paid on inputs during production.
• Current rates under RoDTEP range from 0.3 percent to 4.3 percent of the export value.
• It is recognized as WTO-compatible because it refunds actual duties and taxes rather than offering direct subsidies.

Key Updates in the Recent Notification

Extended Eligibility for SEZs and EOUs

• The scheme’s support for exports from SEZs and EOUs now runs until February 5, 2025.
• Exports made after February 6, 2025, from these categories will no longer be eligible under RoDTEP.

Domestic Tariff Area (DTA) Exports

• For exports from the Domestic Tariff Area (outside SEZs and EOUs), RoDTEP benefits remain in force until September 30, 2025.

Retroactive Impact

• The extension is retroactive for exporters who shipped goods until the new cutoff date. However, some exporters who assumed the scheme ended on December 31, 2024, may have missed out on claiming eligible refunds post that date.

Implications for Exporters

1. Cost Competitiveness: By reimbursing embedded duties and taxes, RoDTEP reduces the overall cost of exported goods, helping Indian enterprises stay competitive in global markets.
2. Certainty for SEZs and EOUs: The extension offers additional time for exporters operating in SEZs and EOUs to plan their shipments, negotiate contracts, and manage costs with clarity.
3. Reduced Export Figures: India’s exports witnessed a 10.9 percent decline in February 2025 compared to the same month in 2024, underlining the challenging conditions for the sector. The continued support through RoDTEP may help cushion exporters against volatility.

Sectoral Coverage and Financial Outlay

RoDTEP covers a wide array of sectors, including textiles, engineering goods, chemicals, pharmaceuticals, and marine products. The overall outlay for the scheme in 2024-25 is estimated to be in the range of INR 13,000–15,000 crore, as noted by trade observers. This budget allocation underscores the government’s focus on supporting exporters through a structured reimbursement mechanism rather than direct incentives.

Looking Ahead

Exporters continue to urge the government for a longer-term RoDTEP framework—ideally, rates and guidelines for five years—to foster greater consistency. Clear policies help exporters plan investments and manage inventory more effectively, especially during periods of global economic pressure.

Conclusion

The extension of RoDTEP benefits for SEZs and EOUs until February 5, 2025, demonstrates the government’s commitment to bolstering India’s export performance. By neutralizing the burden of taxes and duties on inputs, the scheme not only enhances global competitiveness but also provides critical support amidst declining export figures. As exporters adapt to changing market conditions, RoDTEP stands as an essential measure for sustaining growth in one of India’s most pivotal economic sectors.