RoDTEP Extension Sparks Hope Among Exporters

The RoDTEP scheme, which refunds duties and taxes to exporters, has extended its benefits for SEZs and EOUs until February 2025. This extension may not benefit those who did not opt in after December 2024. Exporters are calling for a longer commitment to stabilize trade amidst declining export volumes.

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, crucial for India's export industry, has extended its benefits for Special Economic Zones (SEZs) and Export-Oriented Units (EOUs) until February 5, 2025. This recent notification was made public by the Directorate General of Foreign Trade (DGFT) on March 20.

Originally, companies had until December 31, 2024, to claim benefits under RoDTEP, which offers refunds on duties, taxes, and levies on exports. However, from February 6, 2025, exports from SEZs and EOUs will cease to be eligible for these benefits, while other categories outside SEZs and EOUs will continue to enjoy benefits until September 30.

Exporters, facing a decline of 10.9% in export volumes in February 2025 compared to the previous year, urge the government for a steady five-year RoDTEP policy. The scheme's coverage spans diverse sectors including textiles, engineering, and pharmaceuticals, with a projected outlay of Rs 13,000-15,000 crore for 2024-25.

(With inputs from agencies.)