Export enhance: Government restores RoDTEP scheme, permits leather-based exports from all ports-OxBig News Network

Representational picture of a producing unit of a footwear firm close to Coimbatore, Tamil Nadu
| Photo Credit: M. Periasamy

The Ministry of Commerce and Industry has, over the previous couple of days, taken steps to boost the competitiveness, cost-effectiveness and attain of India’s exports, together with for leather-based gadgets made in Tamil Nadu. 

On Monday (May 26, 2025) night, the federal government introduced that the Directorate General of Foreign Trade had eliminated port-related restrictions on the export of sure kinds of leather-based. Earlier, completed leather-based, moist blue leather-based, and East India tanned leather-based needed to be exported from explicit notified ports. 

Now, all such restrictions have been lifted, which means these leather-based gadgets could be exported from any port or inland container depot. East India tanned leather-based, produced utilizing a particular course of involving vegetable dyes, has earned Tamil Nadu a Geographical Indication (GI) tag, giving the product an unique branding like Darjeeling Tea or Kanchipuram silk sarees.

In addition, the federal government has additionally achieved away with the obligatory requirement for testing and certification by the Central Leather Research Institute (CLRI) for the export of those leather-based gadgets. 

“These procedural requirements were originally instituted to monitor export of value-added leather products and distinguish them from raw hides and dutiable items,” the Ministry of Commerce and Industry stated in a launch. 

“However, with the removal of export duties on such leather categories and the clear physical distinction between processed and raw leather, the existing checks were considered redundant,” it added.

Restoration of scheme for reimbursing exporters

Another resolution that might have a serious influence on boosting India’s export competitiveness is Tuesday’s announcement of the restoration of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exporters achieved by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and items in Special Economic Zones (SEZs). 

Initiated in 2021, the RoDTEP scheme reimburses exporters for any embedded duties, taxes, or levies that aren’t in any other case reimbursed beneath another current scheme. The intention was to make Indian exports extra aggressive. 

The scheme advantages have been obtainable until February 5 of this yr, following which export our bodies lobbied laborious for an extension, which has now come to cross. 

The transfer was cheered by export our bodies. SC Ralhan, the president of the Federation of Indian Export Organisations (FIEO) stated that it could go a great distance in “improving the global competitiveness of Indian exporters” and that the extension of RoDTEP advantages to AA, EOU, and SEZ items “reflects the government’s recognition of their critical role in India’s export ecosystem”.

While the federal government has stated the advantages could be restored from June 1, 2025, Mr. Ralhan requested the federal government to make them obtainable from February 7, 2025, as this is able to guarantee a seamless transition between when the advantages have been revoked and after they have been restored.