Government restores RoDTEP benefits for exporters

The Directorate General of Foreign Trade has restored the full benefits under the Remission of Duties and Taxes on Exported Products, reversing the earlier 50% reduction in rates.

In a notification dated March 23, the DGFT announced that the RoDTEP rates and values have been reinstated to the levels applicable on February 22, 2026, providing relief to exporters who had been impacted by the temporary cut.

The RoDTEP scheme ensures reimbursement of embedded taxes, duties, and levies—at the central, state, and local levels—that are not refunded through any other mechanism but are incurred during the manufacturing and distribution of exported goods. The scheme is based on the principle that exports should be free from domestic tax burdens, thereby enhancing the global competitiveness of Indian products.

Unlike the earlier Merchandise Exports from India Scheme, which functioned as a direct export incentive, RoDTEP is a WTO-compliant mechanism focused on neutralising un-refunded taxes rather than providing subsidies.

Source: PIB