Export boost: Government restores RoDTEP scheme, allows leather exports from all ports
The Ministry of Commerce and Industry has, over the last few days, taken steps to enhance the competitiveness, cost-effectiveness and reach of India's exports, including for leather items made in Tamil Nadu.
On Monday (May 26, 2025) evening, the government announced that the Directorate General of Foreign Trade had removed port-related restrictions on the export of certain types of leather. Earlier, finished leather, wet blue leather, and East India tanned leather had to be exported from particular notified ports.
Now, all such restrictions have been lifted, meaning these leather items can be exported from any port or inland container depot. East India tanned leather, produced using a special process involving vegetable dyes, has earned Tamil Nadu a Geographical Indication (GI) tag, giving the product an exclusive branding like Darjeeling Tea or Kanchipuram silk sarees.
In addition, the government has also done away with the mandatory requirement for testing and certification by the Central Leather Research Institute (CLRI) for the export of these leather items.
'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 said in a release.
'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 decision that could have a major impact 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 done by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units in Special Economic Zones (SEZs).
Initiated in 2021, the RoDTEP scheme reimburses exporters for any embedded duties, taxes, or levies that are not otherwise reimbursed under any other existing scheme. The aim was to make Indian exports more competitive.
The scheme benefits were available till February 5 of this year, following which export bodies lobbied hard for an extension, which has now come to pass.
The move was cheered by export bodies. SC Ralhan, the president of the Federation of Indian Export Organisations (FIEO) said that it would go a long way in 'improving the global competitiveness of Indian exporters' and that the extension of RoDTEP benefits to AA, EOU, and SEZ units 'reflects the government's recognition of their critical role in India's export ecosystem'.
While the government has said the benefits would be restored from June 1, 2025, Mr. Ralhan requested the government to make them available from February 7, 2025, as this would ensure a seamless transition between when the benefits were revoked and when they were restored.
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