The Directorate General of Foreign Trade (DGFT) has issued Notification No. 60/2025-26 dated 23 February 2026, introducing a significant rationalisation under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. The amendment represents a noteworthy policy recalibration impacting incentive structures across a wide range of export sectors.
In exercise of powers under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy 2023, the Government has implemented the following key changes:
RoDTEP rates reduced to 50% of the existing notified rates.
Value caps, wherever applicable, similarly restricted to 50% of previously notified limits.
The rationalised rates apply with immediate effect, signalling an urgent policy implementation without transitional relief.
This development indicates a strategic balancing by the Government between fiscal rationalisation and continued export promotion.
The rationalisation applies to all HS lines covered under Appendix 4R and Appendix 4RE of the RoDTEP schedule.
However, as clarified through a Corrigendum dated 24 February 2026 issued in reference to Notification No. 60/2025-26, the revised restriction shall not apply to export products falling under ITC HS Chapters 1 to 24.
Consequently, agricultural, marine, and allied products classified under Chapters 1–24 remain outside the scope of the immediate reduction and continue under existing RoDTEP benefit structures, unless modified through subsequent notifications.
The notification introduces immediate commercial and operational considerations:
Margin recalibration: Exporters must reassess pricing models where RoDTEP formed a significant component of cost competitiveness.
Contractual review: Long-term export contracts negotiated under earlier incentive assumptions may require renegotiation or internal cost absorption strategies.
Sectoral impact variance: Industries with high dependency on RoDTEP benefits (especially manufacturing sectors beyond Chapters 1–24) may experience immediate financial adjustments.
From a policy standpoint, the rationalisation may indicate a broader restructuring of export incentive frameworks, possibly aimed at aligning incentives with fiscal priorities and sectoral performance. Exporters should proactively:
Conduct immediate incentive impact analysis.
Update internal costing frameworks and export projections.
Explore complementary schemes under the Foreign Trade Policy to mitigate reduced benefits.
The latest amendment marks a critical shift in the RoDTEP incentive landscape. While maintaining continuity of support, the reduction to 50% underscores the importance of strategic planning and dynamic compliance management for exporters navigating evolving policy frameworks.
The Supreme Court of India, in Viraj Impex Pvt. Ltd. v. Union of India [S.L.P.(C) Nos. 1979, 2297, 2778, 1977 of 2019, decided on 21.01.2026], has held that a notification issued under the Foreign Trade (Development and Regulation) Act, 1992 becomes legally enforceable only from the date of its publication in the Official Gazette.
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