Govt extends export benefits under Rodtep scheme till September 2025

It added that the revised rates under the scheme are also notified for implementation with effect from October 10 this year, once the ICEGATE portal gets updated with new rates

The government on Monday extended benefits under the RoDTEP scheme for exports made from domestic tariff area (DTA) units for one year till September 30, 2025.

The scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) provides for refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods and are not being reimbursed under any other mechanism at the Centre, state, or local level.

Launched in January 2021, the scheme was valid till September 30.

The Directorate General of Foreign Trade (DGFT) said in a notification that for Advance Authorisation (AA) holders, Export Oriented Units (EOUs) and Special Economic Zones (SEZs), the scheme is extended till December 31 this year.

"The RoDTEP scheme is being extended for exports made from DTA units till September 30, 2025, and AA/EOU/SEZ units till December 31, 2024," it said.

The revised rates under the scheme were also notified for implementation with effect from October 10 this year, once the ICEGATE portal gets updated with new rates, it added.

The rates are revised downwards so that the outgo remains within the budgetary allocation. The new rates of refund of taxes range from 0.3 per cent to 3.9 per cent, lower than the 0.5 per cent to 4.3 per cent that prevailed before the latest extension.

"In order to adhere to the budgetary framework as provided in FTP (foreign trade policy) 2023, so that the outgo remains within the approved budget of the Scheme, necessary changes shall be made to the Scheme benefits, wherever necessary, including revisions or deletions in the eligible RoDTEP export items, rates, per unit value caps and other measures, as and when required," it said.

ICEGATE registration is a pre-requisite for filing of all customs-related documents, such as bills of entry, and shipping bills online.

In FY23, the scheme supported $ 450 billion worth of exports at the cost of Rs 13,020 crore. In 2021-22 the scheme aided $ 421 billion in exports and cost Rs 12,100 crore.

The rate of tax refund under the scheme ranges from 0.5 per cent to 4.3 per cent of the value of the product.

Sanjay Budhia, Chairman CII National Committee on EXIM, said the industry welcomes the timely extension of the RoDTEP scheme to exports.

He said that this much-needed move will significantly enhance the global competitiveness of Indian exporters by addressing the un-refunded taxes and duties that impact cost structures.

"By levelling the playing field for exporters, this decision will also enable greater participation in global value chains and support export growth," Budhai said, adding that this is a positive step.

Federation of Indian Export Organisations (FIEO) President Ashwani Kumar said the extension will provide stability to the scheme, helping exporters to finalise new contracts offering the best prices factoring the duty refund flowing for the scheme.

"Being an instrument for zero rating of exports, the scheme may be given permanency like other duty neutralisation schemes," Kumar added.