Mihir Ajit Shah

Budget 2025: Key Export-Related Announcements

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Driving Export Growth through Policy Reforms

The Union Budget 2025 presents a strategic vision for boosting exports, with a particular emphasis on MSMEs, infrastructure, digital trade facilitation, and sector-specific incentives. Recognizing that MSMEs contribute 45% of total exports, the government has introduced measures to ease credit access, streamline trade documentation, and enhance sectoral competitiveness. Below are the key highlights from the latest budget that will impact Indian exporters:

Key Highlights

  1. Strengthening MSME Exports
    • Investment and turnover limits for MSME classification have been enhanced to 2.5x and 2x, respectively.
    • Well-performing exporter MSMEs will have access to term loans up to ₹20 crore to boost their business expansion.
  2. Sector-Specific Export Incentives
    • Footwear & Leather Sectors: Expansion of the Focus Product Scheme to facilitate exports worth ₹1.1 lakh crore.
    • Handicrafts Sector: The export period is extended from 6 months to 1 year, with an additional 3-month extension if required. Also, 9 new items are added to the duty-free input list.
    • Crust Leather: 20% export duty exemption to support small-scale tanners and exporters.
  3. Export Promotion & Ease of Doing Business
    • Establishment of an Export Promotion Mission, jointly led by the Ministries of Commerce, MSME, and Finance, focusing on:
      • Easy access to export credit
      • Cross-border factoring support
      • Addressing non-tariff barriers in overseas markets
    • Launch of ‘BharatTradeNet’ (BTN), a unified digital platform for trade documentation and financing solutions.
    • Development of a national framework to encourage Global Capability Centres (GCCs) in Tier-2 cities to boost trade infrastructure.
  4. Infrastructure & Logistics Support
    • Enhancing air cargo infrastructure and warehousing to support the export of high-value perishable horticulture produce.
  5. Regulatory & Taxation Reforms
    • Introduction of a voluntary declaration system allowing importers/exporters to declare material facts and pay duties with interest but without penalty.
    • Amendment in Schedule III (w.e.f. 01.07.2017): Goods warehoused in Special Economic Zones (SEZs) or Free Trade Warehousing Zones (FTWZs), when supplied before clearance for exports or to the Domestic Tariff Area (DTA), will be treated neither as supply of goods nor as supply of services.
    • Removal of IGCR condition for customs duty exemption on import of seeds for rough lab-grown diamond manufacturing.

The Budget 2025 reaffirms the government’s commitment to strengthening exports by providing financial support to MSMEs, simplifying trade processes, and enhancing infrastructure. The establishment of BharatTradeNet (BTN) and the Export Promotion Mission are expected to streamline trade, while sector-specific benefits, will provide direct advantages to exporters. With these measures, India is set to bolster its position as a global trade leader, ensuring long-term export growth, resilience, and competitiveness.

Annual RoDTEP Return Filing Online Module Activated

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In continuation of DGFT Public Notice No. 27/2024-25, exporters with RoDTEP claims of ₹1 crore or more in FY 2023-24 must now file their Annual RoDTEP Return through the newly activated online module.

DGFT, via Trade Notice No. 27/2024-25 dated 29th January 2025, has released a detailed manual & FAQs to guide exporters through the filing process.

🚨 Key Compliance Points:
✅ Exporters must file separate returns for DTA(Appendix 4R) and AA/SEZ/EOU(Appendix 4RE) exports as per Policy.

✅ Seperate returns are required only for HS Codes with ₹50 lakh+ RoDTEP benefits or single return for the highest accrued 8 digit HS code must be filed.

✅ Pro-rata tax calculation is required and must be justifiable if scrutinized.

✅ Only non-refunded taxes/levies should be reported (GST/exempted taxes excluded).

✅ Exporters must submit HS Code, UQC, product description, export quantity, and FOB
value.

✅ Transport costs should include VAT & Excise duty for both inbound and outbound (road & rail).

✅ Additional costs like electricity duty, stamp duty, and captive fuel duty must be reported.

✅ Merchant exporters with ₹1 crore+ RoDTEP claims are also required to file the annual return with data support from their manufacturers. 

✅ Fuel tax claims can be approximated based on transporters’ data and should be maintained for verification.

✅ Filing is mandatory if RoDTEP claim value exceeds ₹1 crore, even if the actual claim received is lower.

📌 Deadline: Exporters must file their returns by 31st March 2025 to avoid penalties or late fees.

🔗 Visit the DGFT Portal to file your RoDTEP Annual Return and refer to the Manual & FAQs for guidance.

Amendments for Online Certificate of Origin (eCoO) System

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In alignment with the online issuance of Certificates of Origin (CoO) for both Preferential and Non-Preferential categories through the new platform https://trade.gov.in, DGFT has issued Public Notice No. 43/2024-25, dated 27th January 2025. The notice amends specific paragraphs of the Handbook of Procedures to ensure consistency with the implementation of the new eCoO system.

Key Changes Introduced

  1. Deletion of Para 2.91(d)
    • The provision allowing the Export Inspection Council (EIC) to print blank certificates and issue them under a specific procedure has been deleted.
  2. Amendment to Para 2.93(c)
    • For the issuance of Non-Preferential Certificates of Origin, only the Invoice and Packing List need to be uploaded online.
    • The fee for each CoO is fixed at ₹200, which includes the attestation of any additional documents.
  3. Addition to Para 2.93(d)
    • A provision has been added to allow the issuance of in-lieu Certificates of Origin (CoO) by the same issuing agency for corrections in previously issued eCoOs.
  4. New Para 2.93(f)
    • A provision has been added to permit the issuance of Back-to-Back Certificates of Origin (Non-Preferential) for goods not of Indian origin that are being re-exported, transshipped, or used for merchanting trade purposes.
    • These certificates will be issued based on documentary evidence confirming the original foreign country of origin.
    • The details of the supporting documents must be explicitly mentioned on the back-to-back CoO issued.

Effective Date

  • The Public Notice is applicable with immediate effect.

Action Required

Exporters are advised to refer to Public Notice No. 43/2024-25, dated 27th January 2025, available on the DGFT website, for detailed information and compliance guidelines

Customs Enables Online Voluntary Payment via ICEGATE

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In a move to enhance ease of doing business and further digitize its services, Customs has introduced a new functionality to replace the existing manual TR-6 Payment Challan process at various Customs stations.

New Voluntary Payment Facility on ICEGATE

  • The new Voluntary Payment facility is accessible post-login on the ICEGATE website (www.icegate.gov.in).
  • This feature enables payments for imports/exports cleared in the past and other issues, with a detailed purpose Annexure provided for clarity.
  • Proof of payment can be submitted to the respective field formations for necessary actions.

Payment Modes Supported

  • Nine Banks listed under the Internet Banking mode through the Authorized Bank, NEFT/RTGS, and Payment Aggregator Mode are accepted for this facility.
  • Electronic Cash Ledger can also be used for voluntary payments.

Key Transition Details

  • This online functionality aims to replace the existing manual TR-6 Challan process.
  • Starting 1st January 2025, the manual TR-6 Challan will no longer be accepted unless specifically approved by the concerned Principal Commissioner/Commissioner of Customs with valid reasons.

Additional Resources

This initiative reinforces Customs’ commitment to enhancing transparency, efficiency, and ease in payment processes.