Questions Raised On Reinstatement of RoDTEP For SEZs, EOUs & AA Holders After 4-Month Suspension

New Delhi, May 27 (KNN) The Government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for three key export categories: Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zone (SEZ) operators. 

The reinstatement will apply to all eligible exports made from June 1, 2025, onwards, following a temporary suspension that began February 5, 2025.

The RoDTEP scheme, operational since January 1, 2021, serves as a mechanism to reimburse exporters for embedded duties, taxes, and levies that remain unrefunded under existing schemes. 

The program operates through a comprehensive digital platform designed to ensure transparency and efficiency while maintaining compliance with World Trade Organisation (WTO) regulations.

The government has allocated Rs 18,233 crore for the scheme in Financial Year 2025-26, providing coverage for 10,780 HS lines for Domestic Tariff Area exports and 10,795 HS lines for Advance Authorization, Export-Oriented Unit, and Special Economic Zone exports.

The Global Trade Research Initiative (GTRI) noted that the temporary withdrawal created uncertainty for exporters during the February-May 2025 period, potentially affecting pricing strategies and long-term contractual planning.

Industry observers emphasise that while the scheme’s reinstatement addresses immediate concerns, the broader issue of policy consistency remains relevant for India’s positioning as a reliable export destination. 

The temporary suspension and subsequent restoration highlight ongoing debates about the optimal implementation framework for export incentive schemes.

The government’s approach reflects ongoing efforts to balance compliance requirements, fiscal considerations, and export promotion objectives within the framework of international trade regulations. 

The reinstatement covers diverse economic sectors through the comprehensive HS line coverage, indicating the scheme’s broad-based application across India’s export portfolio.

(KNN Bureau)

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