• The government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorisation (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs)

• The benefits will be applicable for all eligible exports made from June 1 onwards.

• The government has allocated Rs 18,233 crore under the export benefit scheme RoDTEP in the current financial year for over 10,750 product categories.

• The benefits under RoDTEP for these categories were previously available until February 5, and their reinstatement is expected to provide a level playing field for exporters across sectors.

Remission of Duties and Taxes on Exported Products (RoDTEP)

• RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.

• Major components of such taxes are electricity duty and VAT on fuels used in transportation/distribution.

• The scheme creates a mechanism for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism, at the central, state and local level, but are incurred by the export entities in the process of manufacture and distribution of exported products.

• The Central Board of Indirect Taxes and Customs (CBIC) is implementing the scheme. 

• The scheme is being implemented from January 2021 and the rebate is issued as a transferable electronic scrip by the CBIC.

• It is compliant with World Trade Organisation (WTO) norms and implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency.

• It is expected to boost India’s exports and competitiveness in the global markets.

• As of March 31, 2025, total disbursements under the RoDTEP scheme have crossed Rs 57,976.78 crore.

• By providing support to crucial export sectors, the government aims to not only enhance their competitiveness but also create employment opportunities and contribute to overall economic growth.

(The author is a trainer for Civil Services aspirants.)