Government to Reinstate Full RoDTEP Export Benefits Starting April 1, Says FIEO
Synopsis
In a significant development, the government will fully restore RoDTEP export benefits from April 1, providing vital support to exporters facing global challenges. This decision comes after exporters voiced concerns over recent reductions in duty benefits.
Key Takeaways
The government will restore full RoDTEP benefits starting April 1, 2023.
Current reduced rates will remain until March 31, 2026.
RoDTEP scheme provides refunds on various taxes and duties.
Exporters must declare their intention to claim benefits while filing shipping bills.
Refunds are issued as electronic scrips for customs duty payments.
New Delhi, March 7 (NationPress) The government is set to reinstate the complete benefits under the export aid program known as Remission of Duties and Taxes on Exported Products (RoDTEP) starting April 1, as announced by the Federation of Indian Export Organisations (FIEO) on Saturday.
This initiative is anticipated to provide essential backing to the exporting sector, which has been grappling with various global hurdles.
“The commitment was made by the Directorate General of Foreign Trade during a recent discussion with FIEO,” stated the organization.
FIEO President SC Ralhan indicated that the currently lowered rates under the RoDTEP program would persist only until March 31, 2026.
Beginning April 1, the complete rates will be reinstated, expected to alleviate the pressure on exporters facing cost challenges and market uncertainties.
Earlier, on February 23, the government had halved the RoDTEP duty benefits for most goods, excluding agricultural and processed food products.
This decision left many exporters dissatisfied, prompting them to appeal to the Ministry of Commerce and Industry for a reconsideration.
Established in 2021, the RoDTEP scheme refunds specific taxes, duties, and levies incurred by exporters during the production and distribution of goods, which are not compensated through other central, state, or local mechanisms.
Typically, refunds under this scheme range from approximately 0.3% to 3.9% of the export value.
This initiative succeeded the previous Merchandise Exports from India Scheme to align with World Trade Organisation regulations.
The primary aim is to enhance the competitiveness of Indian products in international markets by minimizing the tax load on exporters.
Exporters are required to indicate their intent to claim these benefits while submitting their shipping bills for export.
Once the export process is finalized, refunds are issued as transferable electronic scrips, which can be utilized to settle customs duties via the government’s ICEGATE portal.
Point of View
It is imperative to acknowledge the government's decision to reinstate full RoDTEP benefits as a necessary measure to support India's export sector. This move reflects an understanding of the pressures faced by exporters and aims to enhance their competitiveness in a challenging global landscape.
NationPress
10 May 2026
Frequently Asked Questions
What is the RoDTEP scheme?
The RoDTEP scheme provides refunds on certain taxes, duties, and levies incurred by exporters during the production and distribution of goods, which are not reimbursed through other mechanisms.
When will the full benefits under RoDTEP be restored?
The full benefits under the RoDTEP scheme will be restored starting April 1, 2023.
Why were RoDTEP benefits reduced earlier?
On February 23, the government reduced RoDTEP duty benefits by half for most products to manage fiscal challenges, except for agricultural and processed food items.
How are refunds processed under the RoDTEP scheme?
Refunds are issued as transferable electronic scrips after the export process is completed, which can be used to pay customs duties via the ICEGATE portal.
What is the significance of this announcement for exporters?
The restoration of full RoDTEP benefits is expected to provide much-needed support to exporters facing cost pressures and uncertainties in global markets.
