The Government has extended export benefits under the RoDTEP scheme to companies in the special economic zones (SEZs) and export-oriented units (EOUs).
According to the Ministry of Commerce, expanding the benefits of the RoDTEP to untapped industries like AA (advance authorisation), EOUs, and SEZ units will assist the exporting community in navigating international challenges amidst supply chain disruptions and global economic uncertainty.
“The government has announced the extension of the RoDTEP scheme support to additional export sectors i.e. Advance Authorisation holders, Export Oriented Units and Special Economic Zones export units,” the Ministry said.
This decision is a recognition of the substantial contribution—roughly 25 per cent of overall shipments—that these sectors provide to India’s exports.
The rates of tax refunds under the export promotion programme, Remission of Duties and Taxes on Exported Products (RoDTEP), for 8,555 products, including dairy products, yarn, and marine commodities, were released by the government in August 2021.
Among other things, exporters receive refunds from RoDTEP for a variety of federal and state levies, taxes, and tariffs levied on input products. The range of the current rates for RoDTEP is between 0.3 per cent and 4.3 per cent.
According to the ministry, since the program’s launch in January 2021, it has already given more than 10,500 export products support totaling Rs 42,000 crore.
Improving India’s export competitiveness in global markets is the goal of the expansion. Important industries, like textiles, stand to gain from the policy.
Refunding taxes and duties that are not refunded under any other programme is the main objective of RoDTEP. This covers a range of federal, state, and local levies, taxes, and duties that are paid during the production and shipping of goods that are exported but are not reimbursed by programmes like the Goods and Services Tax (GST) or the Duty Drawback programme.
