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DGFT introduces online module for ARR filing to streamline export related processes
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Shardul Nautiyal, Mumbai
February 03 , 2025
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In a major boost to streamline pharma export related processes, the Directorate General of Foreign Trade (DGFT) has introduced an online module for filing the Annual Remission of Duties and Taxes on Exported Products (RoDTEP) Return (ARR). It is now accessible via the DGFT Portal (www.dgft.gov.in) under the 'Regulations > RoDTEP' section.
The RoDTEP scheme, which aims to refund embedded taxes and duties incurred in the export process, requires exporters to file an ARR to ensure compliance and transparency. With the introduction of this online module, the government seeks to simplify the process, making it more efficient and user-friendly for trade and industry members, as well as the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Pharma exporters can now file their ARR digitally via the DGFT Portal without the need for physical documentation.
To assist users in the transition, a detailed guideline along with Frequently Asked Questions (FAQs) is available under the RoDTEP section of the portal. The FAQs will be dynamically updated to address emerging concerns.
By digitizing the ARR filing, DGFT aims to reduce errors, improve compliance, and enhance the overall efficiency of the refund process.
The introduction of the online ARR module is part of the government’s broader efforts to promote ease of doing business and boost India's export competitiveness. The ministry of commerce & industry continues to implement digital solutions to support exporters and facilitate seamless trade operations.
A statement issued by the joint Director General of Foreign Trade emphasized that the initiative reflects the government's commitment to fostering a more transparent and technology-driven trade environment. Pharma exporters are encouraged to utilize the online facility for timely and accurate filing of their returns.
The Government of India has issued a directive mandating the filing of ARR for pharma exporters benefiting from the RoDTEP scheme. This new requirement aims to ensure accuracy in duty remission claims by exporters and streamline compliance in the use of RoDTEP benefits.
The ARR filing directive, detailed under the newly added Para 4.94 in the Foreign Trade Policy (FTP) Handbook of Procedures (2023), requires exporters with RoDTEP claims exceeding Rs. 1 crore in a financial year to file their returns by March 31 of the subsequent financial year. Failure to file the ARR will lead to the suspension of benefits under the RoDTEP scheme, and additional fees will be imposed for late filing.
Pharma exporters claiming more than Rs. 1 crore under RoDTEP for a financial year must submit the ARR by March 31 of the following year. For example, claims made in Financial Year (FY) 2023-24 must be filed by March 31, 2025.
Non-compliance will lead to a denial of benefits. A grace period until June 30 will allow late filing with a composition fee of Rs. 10,000. After June 30, this fee doubles to Rs. 20,000. Once applicable fees are paid, RoDTEP claims processing will resume within 45 days. Pharma exporters must maintain records for five years to support their ARR submissions. Records will be subject to periodic assessments by the DGFT and may influence future RoDTEP rates, especially if discrepancies are identified.
ARR filings may also be periodically assessed for necessary due diligence and presented before RoDTEP Committee for suitable revision of rates including for the consideration of higher rates wherever warranted.
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