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Recent Updates in the RoDTEP Scheme: Key Changes Exporters Need to Know

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Recent Updates in the RoDTEP Scheme: Key Changes Exporters Need to Know

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has undergone several significant updates to enhance its effectiveness and align with current trade policies. Key recent changes include:

1. Extension of the RoDTEP Scheme:

  • The Directorate General of Foreign Trade (DGFT) has extended the RoDTEP scheme for exports made from Domestic Tariff Area (DTA) units until September 30, 2025.
  • For Advance Authorization (AA) holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs), the scheme was earlier extended until December 31, 2024.

2. Alignment with Customs Tariff Act:

  • Effective October 1, 2024, the RoDTEP schedule has been realigned to reflect changes in the First Schedule of the Customs Tariff Act.
  • This update includes the addition of 39 new tariff lines at the 8-digit level and the removal of 13 existing lines, ensuring the scheme’s consistency with current tariff classifications.

3. Revised RoDTEP Rates:

  • Starting October 10, 2024, the RoDTEP scheme operates with revised tax refund rates, ranging between 0.3% and 3.9% of the export value.
  • These adjustments aim to align the scheme’s budgetary outgo with the limits set under the Foreign Trade Policy 2023.

4. Annual RoDTEP Return (ARR) Filing Requirement:

  • Exporters claiming RoDTEP benefits are now required to file an Annual RoDTEP Return (ARR) through the DGFT portal.
  • For claims made in Financial Year (FY) 2023-24, the ARR must be filed by March 31, 2025.
  • Non-compliance may result in the denial of RoDTEP benefits and processing delays.

These updates reflect the government’s commitment to supporting exporters while ensuring the scheme’s alignment with fiscal policies and regulatory frameworks. Exporters are advised to stay informed about these changes and comply with the new requirements to fully benefit from the RoDTEP scheme.