In a significant move impacting exporters across sectors, the Directorate General of Foreign Trade (DGFT) has issued Notification relating to rationalising the rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
The notification mandates that RoDTEP benefits shall be restricted to 50% of the existing notified rates and value caps with immediate effect.
The notification, issued by the Ministry of Commerce & Industry under the authority of the Government of India, was published in the Gazette of India Extraordinary (Part-II, Section-3, Sub-Section (ii)). It has been signed by Lav Agarwal, Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India.
The notification clarifies that the applicable RoDTEP rates for all Harmonised System (HS) lines as notified in Appendix 4R and Appendix 4RE shall now be limited to half of the currently prevailing rates. Additionally, wherever value caps are prescribed, those too shall stand reduced to 50%.
The amendment has been issued in exercise of powers conferred under 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 government has formally notified the changes as amendments to the RoDTEP Scheme framework.
The decision is expected to have a direct financial impact on exporters across sectors, as RoDTEP benefits serve as a mechanism to refund embedded duties and taxes not otherwise rebated under existing schemes. By reducing the rates by half, the quantum of remission available to exporters will correspondingly decline.
Industry observers note that the across-the-board reduction—covering all HS lines—signals a broad fiscal recalibration rather than a sector-specific adjustment. Exporters who had factored in the earlier notified rates for pricing and contractual commitments may need to reassess margins and cost structures.
The notification states that the measure has been issued with the approval of the Hon’ble Minister of Commerce & Industry. While no explanatory memorandum accompanies the notification, the use of the term “rationalisation” suggests that the government may be recalibrating the scheme in light of budgetary allocations, revenue considerations, or policy priorities under the Foreign Trade Policy 2023.
With immediate effect from February 23, 2026, RoDTEP benefits stand curtailed to 50% of the previously notified rates and value caps. Exporters are advised to review their claims, pricing structures, and export planning strategies in light of the revised rates.
Further clarifications, if any, are expected through trade notices or FAQs from the DGFT headquartered at Vanijya Bhawan, New Delhi.
Notification Details
Notification No. 60 /2025-26
Date: 23/02/2026
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