DGFT extends RoDTEP scheme till 30 September 2024 and allows benefit to AA holders, EOU and SEZ units

This Tax Alert summarizes a recent Notification [1] issued by the Directorate General of Foreign Trade (DGFT) regarding Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

RoDTEP scheme was previously extended till 30th June 2024 vide Notification no. 33/2023 dated 26 September 2023. The same is now further extended till 30 September 2024.

RoDTEP benefit is also extended to export of manufactured products by Advance Authorization (AA) holders (except deemed exports) and Export Oriented Units (EOU) between 11 March 2024 till 30 September 2024. 

The benefit will be extended to Special Economic Zone (SEZ) units once the IT integration of SEZ units with Customs Automated System (ICEGATE) takes place (expected to be operational from 1 April 2024). The benefit to SEZ units will be available from the date of implementation till 30 September 2024.

Further, revised RoDTEP rates for 25 HS codes in Appendix 4R are being notified.

Comments:

This extension is likely to increase India’s international trade and benefit exporters. 

Extension of the scheme to AA holders, EOU and SEZ units is likely to reduce the cost of exports and make them competitive in international markets.

^{[1] Notification No. 70/2023 dated 8 March 2024}