DGFT Announces Rationalisation of RoDTEP Rates

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Dated: 24.02.2026

DGFT Announces Rationalisation of RoDTEP Rates

The Government of India has recently announced significant changes to the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, aimed at rationalizing the benefits provided to exporters. This update, issued by the Directorate General of Foreign Trade (DGFT) under Notification No. 60/2025-26 dated February 23, 2026, introduces a reduction in the applicable RoDTEP rates and value caps. Here’s everything you need to know about this development.

What is the RoDTEP Scheme?

The RoDTEP Scheme was introduced to boost exports by reimbursing embedded taxes and duties that are not refunded under other mechanisms. These include taxes on fuel, electricity, and other levies incurred during the production and export process. By providing exporters with these benefits, the scheme aims to enhance the competitiveness of Indian goods in the global market.

Key Highlights of the Notification

Reduction in RoDTEP Rates:
- The applicable RoDTEP rates for all Harmonized System (HS) Lines, as notified in Appendix 4R and Appendix 4RE, have been reduced to 50% of the existing rates.
- Similarly, the value caps, where applicable, have also been limited to 50% of the notified caps.
Immediate Implementation:
- The changes are effective immediately, meaning exporters must adjust their calculations and expectations for RoDTEP benefits accordingly.
Legal Framework:
- The notification has been issued under the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and in accordance with Para 1.02 of the Foreign Trade Policy 2023.

Impact of the Notification 

The rationalization of RoDTEP rates is expected to have a mixed impact on exporters. While the reduction in benefits may pose challenges for certain sectors, the move is likely aimed at optimizing government expenditure and ensuring the scheme’s sustainability in the long term. Exporters will need to reassess their cost structures and pricing strategies to adapt to the revised rates.

What Should Exporters Do?

Exporters are advised to:

Review the updated RoDTEP rates and value caps in Appendix 4R and Appendix 4RE.
Recalculate their expected benefits under the scheme to align with the new rates.
Stay informed about further updates or clarifications from the DGFT.

Conclusion

The rationalization of RoDTEP rates marks a significant shift in India’s export policy framework. While it may require exporters to navigate new challenges, it also underscores the government’s commitment to refining and optimizing trade policies. Exporters should proactively adapt to these changes to maintain their competitiveness in the global market.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: DGFT

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