The Centre on Friday announced that outbound shipments from Special Economic Zones (SEZs) and Export Oriented Units (EOUs), which account for about a quarter of India’s exports, will now be eligible for tax refunds under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
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Exporting firms who use the Advance Authorisation (AA) scheme, that permits duty-free import of inputs that are physically incorporated in the export product, will also be covered by the RoDTEP scheme, Commerce and Industry Minister Piyush Goyal said.
While the benefits will kick in from March 11 for EoUs and AA holders, SEZs will have to wait till their IT systems are integrated with the automated ICEGATE system of the Customs section. Keeping budgetary allocations in mind, the RoDTEP benefits for these producers will be valid till September 30 for now, the Commerce Ministry said, adding that key sectors like Engineering, Textiles, Chemicals, Pharmaceuticals and Food Processing will gain.
“This decision comes in recognition of the significant contribution these sectors make to India’s Exports, constituting approximately 25% of our exports. Amidst global economic uncertainties and supply chain disruptions, extending RoDTEP to the uncovered sectors such as AA, EOU, and SEZ units will help the exporting community in handling the international headwinds,” Mr. Goyal said.
The RoDTEP scheme, launched in January 2021 to replace an earlier export incentive scheme that was seen as non-compliant with World Trade Organisation (WTO) norms, has a Budget of ₹15,070 crore in 2024-25, and has so far provided support worth ₹42,000 crore.