Overview
- The Directorate General of Foreign Trade, in a Monday order, reinstated RoDTEP rates and value caps to the levels in force on February 22, effective for shipments from February 23 to March 31.
- Officials said the move responds to the Iran-related conflict that has disrupted Gulf shipping lanes and raised both freight bills and insurance premiums for Indian exporters.
- The order applies to exports from Domestic Tariff Area units, Export Oriented Units, Advance Authorisation holders and Special Economic Zones under RoDTEP, which refunds embedded local taxes via tradable credits.
- Exporter groups welcomed the relief, while the Global Trade Research Initiative warned that benefits end on March 31 and the lack of clarity after that date makes it hard to price new contracts.
- Budget limits still cap the scheme’s scope, with Financial Express reporting Rs 15,728 crore allocated for 2026–27, and outlets differing on coverage counts—some cite 8,555 tariff lines, others 10,780 products—while a separate Rs 487 crore RELIEF plan targets logistics and insurance costs.