27-Feb-2026 RoDTEP Rates Slashed by 50% – Key Impact on Exporters | Feb 2026 Update

#globaltrade #rodtep #dgft #indianexports
CA Pranav Kapadia

The Government of India has announced a 50% reduction in RoDTEP rates and value caps through Notification No. 60/2025-26 dated 23 February 2026 as part of fiscal tightening measures. However, as clarified through a corrigendum issued on 24 February 2026, exports falling under ITC HS Chapters 01–24 remain unaffected by this change. Exporters should reassess the impact on pricing, margins, and ongoing contracts to ensure that future shipments remain commercially viable.

What is RoDTEP?

 

RoDTEP (Remission of Duties and Taxes on Exported Products) is a flagship export promotion scheme launched by the Government of India on 1st January 2021. It replaced the earlier MEIS scheme and reimburses embedded central, state, and local duties/taxes that are not refunded under other mechanisms such as GST or customs drawback.

 

Key Updates — February 2026

 

1. As per Notification No.60/2025-26 dtd. 23-02-2026, the Central Govt has notified that 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.
 

2. As per Corrigendum issued on 24-02-2026, the reduced rates and value caps of RoDTEP benefits notified under Notification No 60 dated 23.02.2026 are not applicable for the export products falling under ITC HS Chapter 01 to 24.

 

Impact/Action Points

 

  1. 1. Exporters will have to review the applicability of the reduction in RoDTEP rates for their products to be exported and the impact on the pricing of such products.  
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  3. 2. In cases where the prices of the products have already been fixed for future consignments, the impact on profitability and the possibility of renegotiation with the customers should be evaluated.
     

Please feel free to reach out to us at info@apmh.in for any clarifications or further assistance.

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