RoDTEP) Scheme

Why in News ? The government has announced the restoration of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exporters operating under Advance Authorisation (AA), Export-Oriented Units (EOUs), and Special Economic Zones (SEZs). This move is aimed at boosting India’s export competitiveness.

Relevance- Pre & Mains

Prelims: RoDTEP/ FIEO

Mains: GS 3

Key Points

Restoration of RoDTEP Scheme:

1. • Benefits under the RoDTEP scheme have been extended to exporters under AA, EOUs, and SEZs.
   • These units were previously excluded from the scheme after February 5, 2025.

Purpose of the Scheme:

1. • Introduced in 2021, the RoDTEP scheme reimburses exporters for embedded duties, taxes, or levies that are not refunded under any other schemes.
   • Aims to enhance the cost competitiveness of Indian exports.

Extension Timeline:

1. • The government announced the restoration of benefits effective from June 1, 2025.
   • Industry bodies like the Federation of Indian Export Organisations (FIEO) have requested to backdate the benefits from February 7, 2025 for a seamless transition.

Significance:

1. • Recognizes the critical role of AA holders, EOUs, and SEZ units in India’s export ecosystem.
   • Expected to make Indian exports more competitive globally.

Industry Response:

1. • FIEO President S.C. Ralhan welcomed the move and emphasized its importance for the export sector.

1. • Export bodies had actively lobbied for this extension following the discontinuation of the scheme earlier in the year.

Implications for Exporters:

Provides financial relief by offsetting embedded costs.

1. • Encourages growth in exports from AA, EOUs, and SEZs.