Government extends Duty Remission RoDTEP Scheme to EOUs, AA, &SEZ Unit

The central government has extended the duty remission scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), to Advance Authorisation (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs). The benefits of the RoDTEP to AA, EOU, and SEZ lapsed on February 6, 2025.

When will it be implemented?

• From 1 June 2025 onwards, the RoDTEP's benefits will be available to the AA, holders, EOUs, and SEZ units.

Remission of Duties and Taxes on Exported Products (RoDTEP) and Its Benefits

The Remission of Duties and Taxes on Exported Products (RoDTEP) is one of the many tax incentive schemes the government of India offers to promote exports from India.

The RoDTEP Scheme is being implemented by the Central Board of Indirect Taxes and Customs (CBIC).

It was launched on 1st January 2021 and it replaced the Merchandise Exports from India Scheme (MEIS).

Benefits 

Exporters are refunded the Central, State or Local duties/taxes/levies, which an exporter pays for the manufacturing and distribution of products.

The scheme reimburses taxes that are not covered under any existing other duty remission scheme. 

Taxes/duties which are covered are VAT (Value Added Tax), duty on electricity, on fuels used in transportation/distribution of exported goods. 

Allocation for 2025-26 - Rs. 18,233 crore

About Advance Authorisation (AA) holders

The Advanced Authorisation (AA) is a duty exemption scheme for exporters.

The scheme allows duty-free import of inputs that are physically incorporated or used in the production of the products to be exported.

It also allows the import of oil and catalysts, which are consumed/ utilised in the production of export products.

Under the scheme, all import duties on inputs, such as Basic Customs Duty, Additional Customs Duty, Education Cess, anti-dumping Duty, Countervailing Duty, Integrated Goods and Service Tax (IGST), or GST cess, are allowed.

Export Oriented Units (EOU)

• Launched by the government of India in 1981 to promote exports from India.
• A particular production unit of a company gets the EOU status. 
• The company must export its entire production of goods and services (except for permissible sales within the country).
• The EOU units get tax benefits if they meet their export obligation.

Special Economic Zones (SEZ)

Special Economic Zones (SEZS) are duty-free enclaves within the country that are deemed foreign territories for the purpose of trade, duties, and tariffs.

The main aim of the SEZ is to provide tax benefits to companies to set up units in the SEZ and export from India.

The export-import (EXIM) policy (1997-2002) introduced the SEZ scheme, which was implemented on 1 April 2000.

The Special Economic Zone Act was enacted in 2005 and came into effect on 10th February 2006.