The Ministry of Commerce seeks continuation of RoDTEP, or Remission of Duties and Taxes on Exported Products for export products in the upcoming Budget 2026, said a source from the government aware of the matter.
“RoDTEP continuity is what we are demanding. There has to be a certainty in the policy that exporters should know that the internal costs are being invested, particularly in these uncertain times,” said the official. RoDTEP scheme currently covers over 10,000 product lines across various sectors. Operational since January 2021, the RoDTEP scheme refunds exporters for embedded duties, taxes and levies not reimbursed elsewhere.
Aligned with World Trade Organization rules and run on a fully digital platform, the scheme has disbursed `57,976.78 crore till March 31, 2025, highlighting its role in boosting merchandise exports. The government had earmarked `18,233 crore for RoDTEP in FY26.
Currently, the scheme is applicable to exports made from Domestic Tariff Area (DTA) units, Advance Authorisation (AA) holders, Special Economic Zone (SEZ) units, and Export Oriented Units (EOUs) up to March 2026 . Exporters receive rebates ranging from 1% to 4% of the value of each product, depending on category and input composition.
The scheme was supposed to expire in September 2025. However, with US tariff hitting certain exports sectors like apparels, marine products, textiles etc, the Directorate General of Foreign Trade, Ministry of Commerce notified in September regarding its continuation.
Under the RoDTEP framework, exporters get a refund on a range of embedded levies, including mandi tax, VAT, coal cess and central excise duty on fuel. The scheme spans labour-intensive sectors such as marine products, leather, gems and jewellery and agriculture, while also extending support to electronics, automobiles, machinery and plastics.