AIIEA Urges Government to Extend RoDTEP Benefits to DFIA Exporters, Highlights Discriminatory Treatment of MSMEs
Mumbai 17 th July 2026 ( TGN ): The All India Importers and Exporters Association (AIIEA), Mumbai, has expressed deep concern over what it describes as the inequitable treatment of MSME exporters operating under the Duty Free Import Authorisation (DFIA) scheme. According to the Association, DFIA exporters are being discriminated against in comparison with exporters operating under similar export promotion schemes such as Advance Authorisation (Advance Licence), Special Economic Zones (SEZs), and Export Oriented Units (EOUs).
The issue has become particularly serious following the recent issuance of recovery notices to DFIA exporters, directing them to return the benefits claimed under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
Mr. Timothy Bochu, Vice President of AIIEA, stated in a press release that the Government, with effect from 11 March 2024, removed “products manufactured under the Advance Authorisation or Duty Free Import Authorisation” from the list of ineligible products under the RoDTEP scheme. Consequently, DFIA exporters began claiming RoDTEP benefits, and Customs authorities processed these claims without objection, crediting the eligible amounts to exporters’ electronic ledgers on the ICEGATE portal.
“However, DFIA exporters were shocked to receive recovery notices from the Customs authorities, including the Directorate of Revenue Intelligence (DRI), seeking repayment of the RoDTEP benefits already granted,” Mr. Bochu said.
He further pointed out that the denial of RoDTEP benefits to DFIA exporters runs contrary to the very objective of the scheme, which was introduced to make Indian exports globally competitive by refunding embedded duties, taxes, and levies not otherwise rebated. Like exporters operating under Advance Authorisation, SEZ and EOU schemes, DFIA exporters also incur these unreimbursed costs during the manufacturing process and therefore deserve equal treatment.
Mr. Bochu noted that the total RoDTEP benefits claimed by DFIA exporters during the last two financial years amount to only ₹52 crore, an insignificant sum when compared with the ₹34,808 crore disbursed under the scheme during the same period (₹16,575 crore in FY 2024-25 and ₹18,233 crore in FY 2025-26).
“It is difficult to understand how the Government, while pursuing its stated vision of making Indian exports globally competitive, cannot absorb such a relatively small amount of ₹52 crore, especially when it represents a negligible fraction of the total RoDTEP disbursement,” he observed.
Mr. Bochu also highlighted a policy inconsistency. While DFIA exporters continue to receive benefits under the Rebate of State and Central Taxes and Levies (RoSCTL) scheme applicable to textiles and apparel, they are being denied similar benefits under the RoDTEP scheme for non-textile tariff items, despite both schemes serving the common objective of reimbursing unrefunded duties and taxes on exports.
According to the Association, recovery of the RoDTEP amounts from DFIA exporters would have little or no meaningful impact on the Government’s finances but would severely affect the financial health of MSME exporters, many of whom operate with limited working capital.
AIIEA has already submitted detailed representations on the issue to the Prime Minister’s Office, the Ministry of Finance, and the Ministry of Commerce and Industry. The Association has now appealed for their urgent intervention and requested that appropriate directions be issued to the Directorate General of Foreign Trade (DGFT) and the Customs authorities to allow DFIA exporters to continue availing RoDTEP benefits, thereby ensuring parity with other export promotion schemes and safeguarding the interests of India’s MSME export sector.
