The All India Importers and Exporter’ Association has expressed deep concern over inequitable treatment of MSME exporters operating under the Duty-Free Import Authorisation (DFIA) scheme.
The Association said DFIA exporters are being discriminated 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.
Timothy Bochu, Vice-President, AIIEA said the Government, with effect from March 11, 2024, removed “products manufactured under the Advance Authorisation or DFIA” 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.
“However, DFIA exporters were shocked to receive recovery notices from the Customs authorities, including the Directorate of Revenue Intelligence, seeking repayment of the RoDTEP benefits already granted,” said Bochu.
The denial of RoDTEP benefits to DFIA exporters runs contrary to the objective of the scheme, which was introduced to make Indian exports globally competitive by refunding embedded duties, taxes, and levies.
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, he said.
The total RoDTEP benefits claimed by DFIA exporters during the last two financial years was only ₹52 crore, insignificant compared to the ₹34,808 crore cumulatively disbursed under the scheme in the previous two fiscals.
While DFIA exporters continue to receive benefits under the Rebate of State and Central Taxes and Levies (RoSCTL) scheme applicable to textiles and apparel, similar benefits under the RoDTEP scheme are denied for non-textile tariff items.
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 seeking urgent intervention to resolve the issue.
Published on July 20, 2026