In a big policy push for India’s export sector, the government has reannounced the Duty Remission Scheme for Export Incentives, otherwise known as Remission of Duties and Taxes on Exported Products (RoDTEP). The scheme, which has been restored w.e.f. June 1, 2025, will pay back central, state, and local duties or taxes that cannot be claimed under other schemes. The move is aimed at boosting the global competitiveness of Indian exports as much as services, bringing relief to exporters battling with high input prices and non-recoverable charges.
What is the Duty Remission Scheme for Export Incentives?
The Export Incentives Duty Remission Scheme is the purpose to eliminate the non-reimbursable tax and charges that are borne by the exporters. These include fuel duties, electricity duties, mandi tax, and other local levies which are not payable under any other refund or exemption scheme.
- Previously withdrawn for Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs), the government has now extended the scheme to include these due to their high contribution to the export sector.
- The scheme now includes 10,795 tariff lines for AA/EOU/SEZ and 10,780 for the Domestic Tariff Area (DTA) exporters so that it is made inclusive across product classes.
Key Highlights of the Revived Scheme
- Wider Coverage: Advance Authorisation, EOUs, and SEZ exporters who were earlier exempted are included in the scheme.
- Increase in Budget Outlay: A robust Rs 18,253 crore has been allocated for the period 2025-26 for foreign under the scheme.
- Better Digital Interface: A simple, technology-enabled platform has been launched for the filing and tracking of claims.
- WTO Compliant: The system is developed in accordance with the World Trade Organization (WTO) provisions in order to gain long-term viability and legality in international trade.
This revival will enable the exporters to export at more competitive prices and thereby enhance their market share in foreign markets.
Import Export Code (IEC) Role
To take advantage of the Duty Remission Scheme for Export Incentives, all exporters must possess a valid Import Export Code (IEC). The 10-digit code from the Directorate General of Foreign Trade (DGFT) is mandatory for anyone who would like to carry on import or export business in India.
The Import Export Code (IEC) is the identity of the exporter/importer and is utilized uniformly in customs, banks, and other government systems. Without IEC, companies are not in a position to take advantage of export incentive schemes like RoDTEP.
In addition, exporters with an Import Export Code (IEC) can take advantage of various benefits under schemes of the government like MEIS, SEIS, RoDTEP, and RoSCTL, thus enhancing profitability and liquidity.
Expansion by USA/UK Company Registration
International expansion has become simpler for Indian exporters. One of the successful strategies is USA/UK Company Registration, which allows businesses to expand operations and establish credibility in top global markets.
Company Registration in USA/UK has multiple advantages:
- Greater Trust: Customers and associates trust firms registered in developed nations.
- Access to the Regulatory Authorities: Allows easier access to the local banking and governmental benefits.
- Market Penetration: Allows Indian companies to enter high-value markets directly without the need for intermediaries.
Indian exporters availing themselves of Duty Remission Scheme for Export Incentives can have maximum reach through marrying local cost benefit with international reach through USA/UK Company Registration.
Besides this, exporters who already hold an Import Export License and Import Export Code (IEC) can bring easy integration of foreign operations through setting up satellite companies abroad, easy logistics and compliances.
Industry Response and Future Outlook
The industry has welcomed the initiative of the government in bringing back the Duty Remission Scheme for Export Incentives. Export associations have stressed long-term, stable policies to attract investment in export infrastructure.The expanded coverage, higher budgetary assistance, and ease of business in the digital mode will accrue to small, medium, and large exporters alike.In the times to come, exporters can intend to frame their business models on this scheme and use their Import Export Code (IEC) and Import Export License to the best of their ability. Also, companies entering Company Registration in the USA/UK can utilize this opportunity to access global value chains more aggressively.
Conclusion
The resumption of the Duty Remission Scheme for Export Incentives is a timely and strategic move by the Indian government to bolster the country’s export ecosystem. With greater coverage, financial provision, and ease of digital processes, the scheme is set to reduce the burden of unrecovered taxes on exporters.
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FAQs
1. What is the aim behind the Duty Remission Scheme for Export Incentives?
The scheme reimburses taxes and duties not covered under any other refund mechanisms, making Indian exports more globally competitive.
2. Is an Import Export Code (IEC) mandatory to claim RoDTEP benefits?
Yes, possessing a valid IEC is essential for availing any export incentives under the scheme.
3. What is the difference between an Import Export Code and an Import Export License?
Import Export Code is a code that is given for identification and Import Export License is a license granting legal permission to engage in international trade. Both are required.
4. How can I take advantage of the Duty Remission Scheme?
Candidate export companies must register on the DGFT portal, have a valid IEC, and follow digital filing processes.
5. How does Company Registration in the USA/UK benefit exporters?
It promotes global confidence, eases local regulation, and gives direct linkage to high-value markets.
6. Are exporters under SEZs and EOUs eligible for RoDTEP at present?
Yes, the new scheme includes exporters under SEZs, EOUs, and Advance Authorisation holders.
7. Are small and medium enterprises eligible under the RoDTEP scheme?
Yes, the scheme is inclusive in nature and encourages MSMEs subject to elementary conditions like having an IEC and proper documentation.
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