Government of India has restored the rates and value caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme for all eligible export products with effect from March 23, 2026. This decision aims to support exporters facing high maritime logistics costs due to West Asia disruptions
This move withdraws a previous 50% restriction [Notification No. 60/2025-26], reinstating rates and value caps to levels in effect on February 22, 2026, aimed at mitigating increased freight and insurance expenses.
Key details include:
- Effective Date: The restoration of full RoDTEP rates applies from March 23, 2026
- Reversal of Restriction: The 50% cap imposed by Notification No. 60/2025–26 dated February 23, 2026, is officially withdrawn.
- Applicability: The reinstated rates are those valid as of February 22, 2026, for all eligible export products.
- Context: This decision addresses challenges in maritime logistics, such as rerouting and increased insurance, caused by rising tensions in the West Asia maritime corridor.
- Significance: This decision is intended to provide timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor.
What is the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?
It was launched with an aim to refund embedded central, state, and local taxes/duties (like coal cess, mandi tax) on exported goods, which are not covered under GST or other refunds.
Key Details of the RoDTEP Scheme
- Objective: To ensure that taxes incurred during manufacturing and distribution are not exported, thereby enhancing the global competitiveness of Indian products.
- Launch Year: 1st January 2021
- Replacement: It had replaced the erstwhile
- Merchandise Export from India Scheme (MEIS): It had violated the provisions of WTO by giving export subsidies for a wide range of goods.
- Rebate of State and Central Taxes and Levies (RoSCTL): It was offered for embedded state and central duties and taxesthat are not refunded through goods and services tax (GST).
- Mechanism: Refunds are issued as transferable electronic duty credit scrips (e-scrips) in an e-ledger.
- Coverage: Covers over 10,000 items across sectors like agriculture, leather, and automobiles, accounting for roughly 75% of traded items and 65% of India’s exports.
- Excluded Sectors: Certain sectors that performed well without incentives, such as steel, chemicals, and pharmaceuticals, have previously been excluded.
- Administration: It is administered by the Department of Revenue but initiated by the Department of Commerce, with rates recommended by a dedicated committee.