The government has relaunched this scheme for the benefit of exporters, know what are the benefits

DGFT has announced the resumption of the duty and tax refund scheme for Advance Authorization Holder EOU and SEZ units. This facility will be available on all exports from these units from June 1, 2025. The RoDTEP scheme was started on January 1, 2021 but it was banned on February 5 this year.

The government has announced the resumption of the duty and tax refund scheme to exporters. The name of this scheme is Remission of Duties and Taxes on Export Products (RoDTEP). Advance Authorization Holders, Export Oriented Units (EOUs) and units operating in Special Economic Zones (SEZs) will get the benefit of this scheme on whatever they export from June 1.

Advance Authorization Holders are those exporters who get a license for duty-free import of raw materials or components used in making the export product. These licensees can import various inputs, packaging material, fuel etc. without paying basic customs duty, additional customs duty or any other duty.

What is RoDTEP scheme, what are the benefits

This scheme was launched on 1 January 2021, but from 5 February 2025, this benefit was discontinued for these categories of exporters. With the resumption of the scheme, exporters from various sectors will be able to get its benefit. In the RoDTEP scheme, duty, tax and levy are reimbursed to the exporters. This scheme is according to the rules of the World Trade Organization (WTO).

This scheme replaced the Merchandise Exports from India Scheme (MEIS). The US had challenged several export subsidy schemes of India in the WTO and said that it harms US exports. The WTO ruled against India and said that the export subsidy programs of the Government of India violate WTO rules. Only after that the Government of India started the RoDTEP scheme.

The government has refunded Rs 57,976.78 crore under this scheme till March 31, 2025. In the financial year 2025-26, the government has allocated Rs 18,233 crore for the RoDTEP scheme.

The decision is welcome, but it is not right to change the decision repeatedly: Expert

Ajay Srivastava, founder of think tank Global Trade Research Initiative (GTRI), says that the RoDTEP scheme is under the rules of WTO. Despite this, uncertainty was created by closing it for advance authorization holders, export oriented units and units of special economic zones. By repeatedly starting and closing a scheme like this, exporters face difficulty in fixing the price of their product or making long-term deals. Srivastava says that restarting this scheme is welcome, but the question is why it was stopped midway. He says that to make India a stable and competitive export hub, it is necessary that the government continues the RoDTEP scheme for at least 5 years.