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DGFT aligns RoDTEP incentives with updated customs tariff schedule with effect from May 1, 2025
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Shardul Nautiyal, Mumbai
May 29 , 2025
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In an important policy update aimed at synchronizing key pharma export incentive mechanisms with India’s revised tariff structure, the Union ministry of commerce & industry has announced the realignment of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. This notification, issued by the Directorate General of Foreign Trade (DGFT), is in accordance with the powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and Para 1.02 of the Foreign Trade Policy 2023 (as amended from time to time).
Following the amendments introduced in the First Schedule of the Customs Tariff Act, 1975 through the Finance Act, 2025, effective from May 1, 2025, there was a pressing need to bring parity between the tariff changes and the applicable RoDTEP incentives. The current notification addresses this requirement by updating the applicable Appendix 4R, which contains the schedules of rates and value caps for various export items under the RoDTEP scheme.
The amendments to Appendix 4R come into effect from May 1, 2025.
These changes align the RoDTEP benefit schedule with the updated Customs Tariff Schedule, ensuring coherence between export incentives and import duty structures.
The list of affected HS Codes (Harmonized System Codes), along with revised RoDTEP rates and value caps, has been made available on the official DGFT website and Link: www.dgft.gov.in ? Regulations ? RoDTEP.
This realignment ensures that the RoDTEP scheme, which aims to enhance export competitiveness by reimbursing embedded central, state, and local duties/taxes that are not otherwise refunded, remains relevant and accurate in light of recent legislative changes. It also reflects the government’s commitment to maintain transparency, predictability and consistency in trade policy frameworks, which is critical for exporters navigating international markets.
Exporters dealing with items affected by the revised Customs Tariff Schedule should review the updated HS Codes and corresponding RoDTEP rates/caps as published, ensure compliance and claim entitlements based on the revised structure for all exports made from May 1, 2025 onwards and update internal accounting and ERP systems to reflect new rates for accurate calculation of rebate entitlements.
By updating the RoDTEP schedule in line with the revised Customs Tariff structure, the Government of India continues its drive toward a modern, rule-based, and incentive-friendly export ecosystem. Stakeholders across the export sector are advised to promptly familiarize themselves with the revised schedule and take necessary action to benefit fully from the aligned incentive regime.
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