The Central Government has announced the restoration of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for Advance Authorisation (AA) Holders, Special Economic Zones (SEZs) and Export Oriented Units (EOUs), effective from June 1, 2025. The measure, notified under the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and Para 1.02 of the Foreign Trade Policy (FTP) 2023, aims to offer a level playing field for all exporters by extending RoDTEP support to previously omitted sectors.

Key Benefits and Scope of the Restoration

RoDTEP is designed to reimburse embedded taxes and products such as electricity duty, fuel used in transportation, and market taxes that are not refunded by other schemes. Prior to this, exporters operating under AA, SEZ, and EOU schemes were not eligible for RoDTEP benefits, resulting in cost disadvantages for those sectors.

The government’s decision to restore RoDTEP benefits to these exporters is expected to majorly minimize the overall cost of their exports and increase international competitiveness. This initiative is particularly relevant for sectors such as engineering equipment, pharmaceutical, electronics, and textile industries where many exporters operate under AAs or within SEZs and EOUs. This demonstrates the government’s commitment to supporting export-led growth and ensuring fair treatment of all categories of exporters.

Updated Rates and Implementation Details

The latest rates of RoDTEP will be available in Appendix 4RE, which has been revised to include new linked Harmonized System (HS) codes in accordance with the Finance Act, 2025. Exporters are advised to refer to the Directorate General of Foreign Trade (DGFT) website at www.dgft.gov.in under the ‘Regulations > RODTEP’ section for comprehensive information and guidance.

This restoration confirms uniform policy support across diverse export mechanisms, removing the variance that affects previous operational decisions. With the revised rate structure, exporters could plan more efficiently and develop their pricing strategies in global markets.

Strategic Impact on India’s Export Landscape

The restoration of RoDTEP for these important sectors aligns with the government’s broader policy vision under initiatives such as 'Make in India' and 'Atmanirbhar Bharat'. It determines receptiveness to industry impressions and a clear focus on promoting a competitive export environment. This decision has been issued with the approval of the Minister of Commerce and Industry emphasizing its significance at the highest policy level.

This policy change is expected to boost exporter confidence, strengthen manufacturing competitiveness and advance India’s goal of increasing its share in global trade. Exporters should review the revised provisions and ensure timely alignment of their operations to take full advantage of restored RoDTEP benefits from 1 June 2025.