EoUs, SEZs to get RoDTEP sops until September 30.

Syllabus: GS-III, Subject: Economy, Topic: Trade and External sector, Issue: RoDTEP

Context: Shipments from Special Economic Zones (SEZs) and Export Oriented Units (EOUs) will be eligible for tax refunds under the RoDTEP. Scheme.

  • Exports from SEZs and EOUs account for about a fourth of India’s exports.
  • Exporting firms who use the Advance Authorisation (AA) scheme will also be covered under RoDTEP.

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:

  • Provides for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism.
  • Refunds are issued in the form of transferable electronic scrip (duty credit scrips) that can be used
    • For import duty payments
    • Transferred to other parties.
  • WTO compatible and is being implemented in an end-to-end IT

Advance Authorisation (AA) scheme

  • Allows duty free import of inputs, which are physically incorporated in an export product.
  • Obligation for exporters: To export finished goods with a specific value addition within a stipulated time frame.
  • Special Advance Authorisation Scheme (SAAS): Variant of AA specifically for the apparel and clothing accessories sector.

Related Concepts:

Special Economic Zone (SEZ) is a designated area within a country that has different economic regulations compared to the rest of the country.

Main purpose : To boost economic activity by attracting foreign investment and promoting exports.

Scroll to Top