DGFT restricts RoDTEP benefits to 50% of notified rates and value caps on exported products

 This Tax Alert summarizes a recent Notification  issued by Directorate General of Foreign Trade (DGFT) rationalizing rebate rates notified under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.

Under the scheme, eligible exporters receive a rebate at notified rates on exports made by them, either as a percentage of free-on-board (FOB) value with a value cap per unit of the exported product wherever required, or a fixed rebate amount per unit.

Vide Notification dated 23 February 2026 (supra), the RoDTEP rates on all products notified in Appendix 4R and 4RE to the FTP, other than those falling under ITC HS Chapter 1 to 24, is capped at 50% of the existing rates and where applicable, 50% of the notified value caps.

This change may affect exporters availing benefits under the scheme, potentially altering export costing, pricing, and cash flow projections.