Govt reinstate duty remission scheme for SEZs

The benefits will be applicable for all eligible exports made from 1st June 2025 onwards.
Kerala’s Cochin SEZ
Kerala’s Cochin SEZ (Photo | Express)
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NEW DELHI: The Government has restored of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs).

The benefits will be applicable for all eligible exports made from 1st June 2025 onwards. The 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.

According to a Commerce Ministry statement, the decision is a part of the government’s sustained efforts to boost India’s export competitiveness in global markets. “The benefits under RoDTEP for these categories were previously available until 5th February 2025, and their reinstatement is expected to provide a level playing field for exporters across sectors,” said the statement.

Operational since 1st January 2021, the RoDTEP scheme is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing scheme. The scheme intends to compensate all central, state and local taxes levied on the exported products.

RoDTEP is compliant with World Trade Organization (WTO) norms and is implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency.

The commerce ministry informed that total disbursements under the RoDTEP scheme have crossed Rs. 57,976.78 crore as of 31 March 2025, underscoring its significant role in supporting India's merchandise exports.

For 2025–26, the Government has allocated Rs. 18,233 crore under the scheme.

“The reinstatement of RoDTEP benefits for special export categories reflects the government’s continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India's long-term trade growth,” says the commerce ministry.

However, Ajay Srivastava, founder, Global Trust Research Initiative (GTRI), the government’s stop-and-start approach to RoDTEP undermines the scheme’s purpose.

“Although RoDTEP is a WTO-compliant way to refund embedded duties paid by exporters, its repeated withdrawal for AA holders, EOUs, and SEZs creates serious uncertainty. Exporters struggle to price products or plan long-term deals when they cannot rely on steady refunds,” he says.

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