Daijiworld Media Network - New Delhi

New Delhi, Mar 7: The Indian government will restore full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from April 1, providing relief to exporters facing global economic pressures, according to the Federation of Indian Export Organisations (FIEO).

FIEO said the assurance was given by the Directorate General of Foreign Trade during a meeting with representatives of the exporting community.

FIEO President S C Ralhan stated that the reduced RoDTEP rates currently in place will remain effective only until March 31, 2026. From April 1, the scheme’s full benefits will be reinstated, which is expected to ease cost pressures and uncertainty faced by exporters in global markets.

Earlier, on February 23, the government had cut RoDTEP duty benefits by nearly half for most products, excluding agricultural and processed food items. The move had drawn criticism from exporters, who urged the Ministry of Commerce and Industry to review the decision.

Launched in 2021, the RoDTEP scheme provides exporters with refunds on certain taxes, duties, and levies incurred during the production and distribution of goods that are not reimbursed through other central, state, or local mechanisms. Refund rates generally range from 0.3 per cent to 3.9 per cent of the export value.

The scheme replaced the earlier Merchandise Exports from India Scheme to align with regulations of the World Trade Organization and enhance the global competitiveness of Indian products by lowering the tax burden on exporters.

To claim benefits under RoDTEP, exporters must declare their intent while filing the shipping bill. Once the export process is completed, refunds are issued as transferable electronic scrips, which can be used to pay customs duties through the government’s ICEGATE portal.