Key Highlights

• RELIEF extended: Timelines under Component II of the RELIEF scheme, offering 95% ECGC risk cover, have been extended.
• Premium freeze: Exporters' insurance premiums will not rise above pre-disruption levels during the eligible period.
• RoDTEP till Dec 31: The duty and tax refund scheme for exporters is extended until December 31, with rates unchanged.
• Who's covered: DTA units, Advance Authorisation holders, SEZ units and EOUs can continue to claim RoDTEP.
• The trigger: Higher freight, insurance costs and war risks from disruptions in the Gulf and West Asia shipping routes.

With disruptions in West Asia showing no clear end, the government has extended two key support measures for exporters, the Commerce Ministry said on Friday.

The Department of Commerce has extended the timelines for Component II of RELIEF (Resilience & Logistics Intervention for Export Facilitation), a time-bound intervention under the Export Promotion Mission. Separately, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been extended until December 31.

What RELIEF Offers

RELIEF was launched on March 19 to support exporters hit by higher freight costs, rising insurance premiums and war-related risks from disruptions in the Gulf and the wider West Asia maritime corridor.

RoDTEP: Refunds Continue Unchanged

RoDTEP refunds central, state and local duties, taxes and levies that are built into the cost of exported products but not otherwise refunded. The ministry said existing rates and value caps "as applicable on September 30 shall continue unchanged" during the extension.

The scheme remains available for Domestic Tariff Area units, Advance Authorisation holders, Special Economic Zone units and Export Oriented Units.

Why It Matters: Insurance Is Now a Trade Barrier

For exporters, the West Asia crisis has turned shipping into a cost and risk problem. When ships face war risks on key routes, insurers raise premiums sharply, and some exporters may hesitate to ship at all. By offering high risk cover and freezing premiums at pre-crisis levels, RELIEF removes one of the biggest reasons to hold back shipments.

RoDTEP addresses a different issue. Indian exporters pay various taxes that end up inside the price of their goods, making them less competitive abroad. Refunding these helps keep prices level with rival exporting countries, which matters even more when freight costs are already high.

A Pattern of Short Extensions

The extensions also show how closely support is tied to the crisis. RoDTEP has been extended only till December 31, a three-month window, and the ministry did not specify the new end date for RELIEF in its statement. Short extensions give the government flexibility, but they also leave exporters planning shipments and contracts with limited certainty beyond the year-end.

The Bottom Line

The government is effectively acting as a shock absorber for exporters while the West Asia disruption continues. The measures ease costs for now, but long-term relief will depend on shipping routes returning to normal.

With inputs from IANS.