Restoration of RoDTEP for Advance Authorisations AAs holders, Special Economic Zones SEZs and ExportOriented Units EOUs from 01062025

## Report on the Restoration of RoDTEP for Specific Export-Oriented Entities **1. Executive Summary:** This report analyzes a government notification regarding the restoration of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for specific categories of exporters. The notification, issued by the Directorate General of Foreign Trade (DGFT) on May 26, 2025, announces the reinstatement of RoDTEP benefits for Advance Authorizations (AAs) holders, Special Economic Zones (SEZs), and Export Oriented Units (EOUs), effective June 1, 2025. The core purpose is to provide support for exports manufactured by these entities. This report outlines the details of this restoration, its implications, and the expected impact. **2. Introduction:** This report aims to provide an overview of the notification issued by the Directorate General of Foreign Trade (DGFT) on May 26, 2025, regarding the restoration of the RoDTEP scheme for specific export-oriented entities, based solely on the provided policy text. The report will cover the background, key provisions, target audience, and expected outcomes of this policy change. **3. Policy Overview:** * This notification concerns an *amendment* to existing foreign trade policy, specifically reinstating a previously available benefit. * **Core Objective:** To restore support for exports of products manufactured by Advance Authorizations (AAs) holders, Special Economic Zones (SEZs), and Export Oriented Units (EOUs) under the RoDTEP scheme. **4. Background and Rationale:** The provided text suggests that RoDTEP benefits were previously suspended or unavailable for AAs holders, SEZs, and EOUs. This amendment aims to rectify this situation, potentially due to a reevaluation of the scheme's impact, budgetary considerations, or alignment with revised trade policies. The text does not elaborate on the specific reasons for the prior suspension, focusing solely on the restoration of the benefit. The Finance Act, 2025 necessitates the updates in HS codes. **5. Key Provisions / Changes:** This notification focuses *specifically* on the changes introduced by the amendment text: * **What specific part of the original policy is being changed:** The notification does not directly mention the specific part of the original policy being changed. However, it signifies a *reversal* of a previous decision that had excluded AAs holders, SEZs, and EOUs from RoDTEP benefits. * **What the *new* rule/provision *is*, based *only* on the amendment text:** The *new* rule is the restoration of RoDTEP benefits for exports of products manufactured from AAs, SEZs, and EOUs, effective June 1, 2025. Rates are available in Appendix 4RE, including new HS codes as per the Finance Act, 2025. * **Explain the *difference* or the *effect* of this specific change:** The effect of this change is that exporters operating under AAs, within SEZs, or as EOUs are now eligible to claim RoDTEP benefits on their exported goods, reducing their export costs and potentially increasing their competitiveness in the global market. This provides financial incentives for manufacturing and exporting from these zones. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Exporters holding Advance Authorizations (AAs). * Businesses operating within Special Economic Zones (SEZs). * Export Oriented Units (EOUs). * Related industries supplying these entities. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies mentioned:** The Directorate General of Foreign Trade (DGFT) is responsible for implementing and overseeing the RoDTEP scheme. * **Timelines or procedures specified *in the text*:** The restoration is effective from June 1, 2025. Details on the rates and regulations are available on the DGFT portal (www.dgft.gov.in) under the 'Regulations RODTEP' link. Exporters will need to consult this portal to understand the specific procedures for claiming RoDTEP benefits. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome *of these specific changes* is to: * Reduce the cost of exporting for AAs holders, SEZs, and EOUs. * Incentivize exports from these zones, potentially increasing export volumes. * Improve the competitiveness of Indian exporters in the global market. * Potentially boost economic activity within SEZs and EOUs. * Promote exports of products manufactured using imported inputs under Advance Authorizations. **9. Conclusion:** The restoration of the RoDTEP scheme for Advance Authorizations holders, Special Economic Zones, and Export Oriented Units, effective June 1, 2025, is a significant development for the export sector. By reinstating this benefit, the government aims to provide financial support and improve the competitiveness of these key export-oriented entities. Exporters should familiarize themselves with the detailed procedures and rates available on the DGFT portal to effectively utilize this scheme. This notification is important as it aims to boost export-oriented manufacturing and trade by reducing tax burdens.

Key Entities Referenced