Minister Halves RoDTEP Rates, Even Value Caps are Halved, Budget Could be Exhausted Even though Exports are Falling!

Legal Basis

Issued under:

·         Section 5 of the Foreign Trade (Development and Regulation) Act, 1992

·         Para 1.02 of the Foreign Trade Policy 2023

What is RoDTEP?

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme refunds embedded duties/taxes not otherwise refunded to exporters.

What Has Changed?

With immediate effect:

·         RoDTEP rates for all HS lines listed in Appendix 4R and 4RE are reduced to 50% of the existing notified rates.

·         Where a value cap is prescribed, it is also reduced to 50% of the notified value cap.

Practical Impact

Particular

Earlier

Now (After Notification)

RoDTEP Rate

100% of notified rate

50% of notified rate

Value Cap

100% of notified cap

50% of notified cap

Example:

If earlier:

·         RoDTEP rate = 2%

·         Value cap = ₹5 per unit

Now:

·         RoDTEP rate = 1%

·         Value cap = ₹2.50 per unit

Effect of Notification

·         Exporters will receive only half of the earlier RoDTEP benefit.

·         Applies immediately (no transition period mentioned).

·         Impacts export pricing, profitability, and working capital calculations.

 

[DGFT Notification No. 60 dated 23rd February 2026]

Effect of the Notification: RoDTEP benefits shall be restricted to 50% of the notified rates and value caps with immediate effect.

Subject: Rationalisation of RoDTEP rates.

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with Para 1.02 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby notifies the following amendments in the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:

2. Rationalisation of RoDTEP rates:

With immediate effect, the applicable RoDTEP rates for all HS Lines as notified in Appendix 4R and Appendix 4RE shall be limited to 50% of the existing rates and, where applicable, 50% of the notified value caps.

This is issued with the approval of the Hon'ble Ministerof Commerce & Industry.