Exporters stare at uncertainty over RoDTEP

With the expiry of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports under advance authorisation (AA), export-oriented units (EOU), and special economic zones (SEZ) schemes on December 31, 2024 and no communication regarding its extension, exporters are uncertain about RoDTEP benefits for these schemes.

An advisory, issued by the Office of the Commissioner of Customs - NS II, Centralised Export Assessment Cell, Jawaharlal Nehru Custom House, on January 2, urging exporters and customs brokers filing shipping bills under AA, EOU, or SEZ schemes to “carefully opt” for the RoDTEP scheme, was withdrawn on January 3, adding to the confusion.

In September last year, the Directorate General of Foreign Trade issued a notification that the RoDTEP scheme was extended till September 30, 2025 for export goods manufactured in the domestic tariff area and till December 31, 2024 for goods exported under AA, SEZ or EOU schemes.

“[Now] The system does not accept RoDTEP applications under AA, EOU or SEZ schemes. Exporters need the support to be competitive,” said a forwarding agent in Coimbatore.

A textile exporter near Erode in Tamil Nadu said exports under AA, EOU or SEZ schemes are not affected by customs duty for imports. But, there are fuel tax, electricity tax, etc which the exporters get refunded only through RoDTEP. Hence, the scheme should be continued.