Export industry seeks extension of RoDTEP Scheme for SEZs & EOUs amid global challenges

NEW DELHI : The Export Industry has called upon the government to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme for export-oriented units (EOUs) and special economic zones (SEZs) until September 2025, citing ongoing global economic challenges. 

The scheme, which provides refunds for embedded non-creditable levies to boost exports, currently remains active for domestic tariff area exports until September 30, while it has expired for SEZs, EOUs, and advance authorisation holders as of December 31, 2024.

The Export Promotion Council for EOUs and SEZs (EPCES) has formally addressed the expenditure and commerce secretaries, arguing against the disparate treatment of exporters. 

In their communication, EPCES emphasised that there is no valid basis for withholding RoDTEP benefits from EOUs, SEZs, and advance authorisation holders, particularly given that these sectors account for approximately 15 percent of India’s total merchandise exports.

The RoDTEP scheme, which was introduced in 2021, expanded its coverage to include SEZs, EOUs, and advance authorisation holders from March 11, 2024, as part of measures to support exporters facing international market challenges. 

The government has allocated Rs 16,575 crore for the scheme in the Union Budget 2024-25. EPCES has proposed that if budget constraints exist, the scheme could either be limited to specific sectors and products, or alternatively, extended uniformly to all exporters until March 31, rather than maintaining the current selective approach.