December 2025

Introduction: Turning Compliance into Competitive Edge

For any Indian exporter, succeeding in the global marketplace requires more than just high-quality products; it demands smart financial strategy. The Indian government, through the Directorate General of Foreign Trade (DGFT) and the Department of Revenue, offers a suite of powerful export incentive schemes designed to neutralize taxes and reduce costs.

At Globax Solutions, we see these schemes not as complex paperwork, but as essential tools to maximize your profitability and enhance your price competitiveness.

This guide breaks down the three core pillars of government support:

1. RoDTEP: The Remission on Taxes and Duties.

2. Advance Authorisation (AA): The Duty Exemption for Raw Materials.

3. EPCG: The Zero-Duty Import of Capital Goods.

1. RoDTEP Scheme: Getting a Refund on Embedded Taxes

The RoDTEP (Remission of Duties or Taxes on Exported Products) scheme is India’s World Trade Organization (WTO)-compliant replacement for the former MEIS scheme. Its core objective is simple: to refund various central, state, and local duties and taxes that are currently not refunded under GST or other mechanisms.

What it Does for You:

• Neutralizes Hidden Costs: It remits the duties embedded in the production and distribution chain, such as state taxes on fuel, electricity duties, and Mandi Tax.

• Boosts Competitiveness: By neutralizing these non-refundable costs, RoDTEP allows you to offer your goods at more competitive prices globally.

• Benefit Mechanism: The refund is issued as transferable e-scrips (electronic credit ledger) which can be used to pay Basic Customs Duty on the import of goods, or they can be sold to other importers for cash.

Globax Solutions Insight:

To claim RoDTEP, you must manifest your intention on the Shipping Bill. Missing this crucial step means forfeiting the benefit. We ensure 100% compliance during the shipping bill filing to guarantee your claim is valid from day one.

2. Advance Authorisation (AA) Scheme: Duty-Free Input Procurement

The Advance Authorisation (AA) scheme directly tackles your manufacturing costs by allowing you to import raw materials and inputs duty-free for the purpose of producing export goods.

What it Does for You:

• Zero-Duty Import: You are exempted from paying Basic Customs Duty (BCD), IGST, and Compensation Cess on the imported inputs.

• Cost Reduction: By removing import duties, the AA scheme drastically lowers the cost of production, directly enhancing your profit margin and global pricing appeal.

• Scope of Import: It covers inputs that are physically incorporated into the export product, along with packaging material, fuel, oil, and catalysts consumed during the production process.

• Key Requirement: Imports are granted based on Standard Input Output Norms (SION) specified by the DGFT, or on ad-hoc norms if SION is not applicable.

Globax Solutions Insight:

The AA scheme requires a minimum Value Addition (usually 15%). We specialize in calculating your SION/Ad-hoc norms and managing the export obligation timeline (typically 18 months) to ensure a smooth closure of your license without attracting duty penalties.

3. EPCG Scheme: Upgrading Machinery at Zero Cost

The Export Promotion Capital Goods (EPCG) scheme is designed to enhance the quality and competitiveness of Indian manufacturing by allowing the import of Capital Goods at Zero Customs Duty.

What it Does for You:

• Infrastructure Advantage: You can import essential machinery, spares, moulds, dies, and software required for pre-production, production, and post-production, without paying import duty.

• Technology Upgrade: This facilitates modernization and technological up-gradation of your factory, enabling you to produce world-class quality goods.

• The Obligation: In return for the duty savings, you undertake an Export Obligation (EO) equivalent to 6 times the duty saved, to be fulfilled over a period of 6 years.

Globax Solutions Insight:

The complexity lies in managing the Export Obligation (EO). We guide you through the process of obtaining the required Installation Certificate and ensure your annual export performance reporting is accurate, leading to a timely Export Obligation Discharge Certificate (EODC).

Conclusion: Partner with Globax for Seamless Compliance

Leveraging these government support schemes is crucial for any exporter aiming for sustainable growth and maximized profitability. However, the requirements—from manifesting RoDTEP claims correctly, to securing AA norms, and fulfilling EPCG obligations—are complex and involve rigorous documentation with the DGFT and Customs authorities.

Globax Solutions is your dedicated compliance partner. We transform the administrative burden into a strategic asset, ensuring you claim every benefit you are entitled to, legally and efficiently.