by In a major decision aimed at boosting India’s exports and manufacturing competitiveness, the Directorate General of Foreign Trade (DGFT) has announced the restoration of the RoDTEP scheme benefits for Advance Authorization (AA) holders, Special Economic Zones (SEZs), and Export-Oriented Units (EOUs), effective from June 1, 2025.
This move marks a long-awaited policy reversal and is expected to bring considerable relief to thousands of exporters who had been excluded from RoDTEP benefits since the scheme’s inception.
🔍 What is RoDTEP?
The Remission of Duties and Taxes on Exported Products (RoDTEP) is a flagship scheme of the Government of India that aims to reimburse embedded taxes and duties that are not refunded through other schemes. These include:
- Central & State taxes on fuel used in transportation
- Electricity duty
- Mandi tax
- Stamp duty on export documents
- Embedded GST not credited through ITC
Until now, entities operating under AA, SEZ, and EOU regimes were excluded from RoDTEP, causing a disparity in competitiveness.
📰 Key Highlights of the DGFT Notification (No. 11/2025-26)
Date of Issue: 26 May, 2025
Issued by: DGFT, Ministry of Commerce & Industry
Effective From: 01 June, 2025
1. Beneficiaries:
- Advance Authorization (AA) Holders
- Special Economic Zones (SEZs)
- Export-Oriented Units (EOUs)
2. Scope:
Support under the RoDTEP Scheme is now applicable to exports of goods manufactured by these units, restoring parity with other exporters.
3. Applicable Rates:
The RoDTEP rates applicable to these units are available in Appendix 4RE of the Foreign Trade Policy, 2023, and reflect newly aligned HS codes under the Finance Act, 2025.
4. Accessing the Details:
Exporters can find the updated rates and eligible HS codes on the DGFT website under the section:Regulations > RODTEP
✅ Impact of the Restoration
This restoration is a policy-level game-changer for India’s export ecosystem. Here’s why:
- Boost to Competitiveness: SEZs, EOUs, and AA holders can now price more competitively in global markets.
- Encouragement to Value-Addition: Many of these units manufacture high-value, labour-intensive goods—critical for job creation.
- Fairness Restored: Earlier exclusion led to an uneven playing field. This reinstatement resolves that anomaly.
- Ease of Doing Business: With embedded tax refunds streamlined, exporters will face fewer distortions in pricing and cost calculation.
🏭 Who Stands to Benefit?
The reinstated RoDTEP benefits apply to:
- Garment and textile manufacturers in SEZs
- Pharma and chemical exporters under EOUs
- Food processing and agri-based AA exporters
- Engineering goods and electronics units
- SMEs operating within SEZ clusters
This list spans across India’s critical export segments—creating a ripple effect for job creation, industrial output, and foreign exchange earnings.
📌 Expert Quote
“This is a significant step toward fulfilling the objective of making Indian exports zero-rated. The reinstatement of RoDTEP benefits will plug crucial cost gaps for SEZs and AAs,” said a senior export consultant from StartExportIndia.com.
📂 Quick Reference
| Category | Now Eligible for RoDTEP? |
|---|---|
| AA Holders | ✅ Yes (from 01.06.2025) |
| SEZ Units | ✅ Yes (from 01.06.2025) |
| EOUs | ✅ Yes (from 01.06.2025) |
| DTA Exporters | ✅ Already Eligible |
💡 What Should Exporters Do Now?
- Download Appendix 4RE: Check your product’s HS code for applicable RoDTEP rate.
- Update Pricing Models: Factor in the RoDTEP refund while quoting to buyers.
- File Claims Promptly: Coordinate with your CHA and ICEGATE login for accurate RoDTEP scrip generation.
- Consult Experts: For documentation and export incentive optimization, seek help from qualified consultants.
🚀 Conclusion
The DGFT’s move to restore RoDTEP benefits to SEZs, EOUs, and AAs is not just administrative—it reflects India’s commitment to creating a robust, equitable, and globally competitive export environment.
At StartExportIndia.com, we welcome this move and urge exporters to immediately take action to maximize benefits.
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