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Restoration of RoDTEP for AAs, SEZs & EOUs: A Boost for Indian Exporters

  • Writer: tax comply
    tax comply
  • 4 days ago
  • 2 min read


On 26 May 2025, the Directorate General of Foreign Trade (DGFT) issued Notification No. 11/2025-26, announcing a significant development in India’s export policy framework. Effective from 1 June 2025, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is being restored for the following categories of exporters:

  • Advance Authorisation (AA) holders

  • Special Economic Zones (SEZs)

  • Export-Oriented Units (EOUs)

This move comes as a welcome relief and a major incentive for Indian exporters operating under these schemes, who were previously excluded from RoDTEP benefits.


What is RoDTEP?

The RoDTEP scheme, launched on 1 January 2021, aims to refund embedded taxes and duties that are not otherwise reimbursed under any other incentive or tax remission scheme. It replaced the MEIS (Merchandise Exports from India Scheme) after MEIS was found non-compliant with WTO norms.

RoDTEP covers:

  • State and central taxes on fuel, electricity, mandi fees, stamp duties, etc.

  • Rebate is issued as digitally transferable scrips (credits) based on notified rates under Appendix 4R / 4RE.


Why Was RoDTEP Stopped for AAs, SEZs, and EOUs?

Initially, when RoDTEP was rolled out, the government excluded AA holders, SEZs, and EOUs from its coverage. The reasoning was:

  • These units already enjoy duty exemptions (e.g., customs duty, GST) under existing schemes like the Advance Authorisation, SEZ Act, and FTP benefits.

  • Extending RoDTEP to these units was considered a "double benefit", violating the principle of non-duplication of export incentives.

However, exporters and industry bodies highlighted that despite these exemptions, many non-creditable levies continued to burden these exporters. Over time, this led to a competitive disadvantage, especially when exporters from the DTA (Domestic Tariff Area) received RoDTEP benefits while similar exporters from SEZs/EOUs did not.


What Changed Now?

Recognizing these genuine concerns, the DGFT has:

  • Restored RoDTEP support for exports made under Advance Authorisation, SEZs, and EOUs.

  • Updated rates are notified under Appendix 4RE, aligned with the Finance Act 2025.

  • Exporters can view applicable rates and products on the DGFT portal under Regulations > RoDTEP.

Effective Date: This benefit is restored from 01.06.2025 onwards.


Conclusion

The restoration of RoDTEP for these key export segments reaffirms India’s commitment to creating a comprehensive, WTO-compliant, and competitive export ecosystem. Exporters are advised to immediately review the new Appendix 4RE to align their export planning and documentation for maximum benefit starting 1 June 2025.


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