RoDTEP scheme benefits extend for SEZs, EOUs until February

Exporters from special economic zones (SEZs) and export-oriented units (EOUs) can still claim benefits under the RoDTEP scheme until February 5, 2025. After this date, exports from these areas will no longer be eligible for these benefits. The extension is a response to tough conditions in the export market. A recent notification confirmed that companies that exported goods from SEZs and EOUs up to February 5 can request refunds under the RoDTEP scheme. Initially, exporters could seek these benefits until December 31, 2024. RoDTEP stands for Remission of Duties and Taxes on Exported Products. It rebates various duties and taxes that exporters incur on their input products, with current rates ranging from 0.3% to 4.3%. Although the scheme has been extended for SEZs and EOUs, support for exports from other domestic regions will continue until September 30, 2025. Trade experts warn that some exporters who didn’t apply for RoDTEP before December 2024 might miss out on refunds due to this extension. RoDTEP is designed as a reimbursement, not as an incentive, which complies with World Trade Organization rules. Exporters are calling on the government to announce rates and the scheme's duration for five years, which could provide more certainty as export volumes decline. February 2025 saw India's exports drop by 10.9% compared to February 2024, reflecting tough challenges in the sector. Various sectors, including textiles, engineering, chemicals, and pharmaceuticals, are covered under RoDTEP. The budget for the scheme for the fiscal year 2024-25 is estimated to be between Rs 13,000 and Rs 15,000 crore.