DA Newsflash (Customs) : Extension of RoDTEP Scheme to SEZ Units

Hope you are well and safe!

The Ministry of Finance has issued Notification No. 50/2024-Customs (N.T.), dated 19th July 2024, amending Notification No. 24/2023-Customs (N.T.) dated 1st April 2023. This amendment extends the RoDTEP (Remission of Duties and Taxes on Export Products) support to units in Special Economic Zones (SEZ).

Key Points

1. Inclusion of SEZ Units in RoDTEP: The term “or unit in Special Economic Zone” has been added after “Export Oriented Unit” in clause 2, sub-clause (1) of the original notification.
2. Effective Date for SEZ Exports: A new proviso states that for goods manufactured or exported by SEZ units, the shipping bill or bill of export must be presented on or after 1st July 2024.

DA Insights

• Enhanced Competitiveness: Including SEZ units under the RoDTEP scheme aims to enhance their global competitiveness by providing rebates on taxes and duties.
• Boost to SEZ Exports: This move is expected to encourage more exports from SEZs, aligning with the government's broader goal of boosting manufacturing and exports.
• Operational Clarity: The specific date ensures operational clarity for SEZ exporters, enabling them to plan their activities accordingly to maximize the benefits from the RoDTEP scheme.

This update is critical for stakeholders in SEZ operations, providing them with the opportunity to leverage RoDTEP benefits and enhance their export performance.

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