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The Directorate General of Foreign Trade (DGFT) has rationalised Remission of Duties and Taxes on Exported Products (RODTEP) rates to boost pharma exports. The rates have been rationalised with immediate effect and the applicable RoDTEP rates for all HS Harmonised System (HS) Lines as notified and shall be limited to 50% of the existing rates and, where applicable, 50% of the notified value caps.
“RoDTEP benefits shall be restricted to 50% of the notified rates and value caps with immediate effect. The DGFT has rationalised the rates in exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with Para 1.02 of the Foreign Trade Policy (FTP) 2023,” according to Lav Agarwal, director general (DG) Foreign Trade.
The DGFT has also further extended the last date for filing the Annual Remission of Duties and Taxes on Exported Products (RoDTEP) Return (ARR) for the financial year 2023-24. The period for filing of ARR for FY 2023-24 has been extended from November 30, 2025 to March 31, 2026 with composition fee of Rs. 15,000 in the interest of ease of doing business (EoDB) and export promotion.
“This has been done in exercise of the powers conferred under paragraph 1.03 & 2.04 of the Foreign Trade Policy (FTP) 2023. In case of non-filing of ARR by the extended date, measures will be taken in accordance with para 4.94 of the Handbook of Procedures (HBP), 2023, including denial of RoDTEP benefits and scroll-out of scrips,” DGFT stated.
As per DGFT, the deadline was earlier pushed from March 31, 2025, to June 30, 2025. Additionally, the grace period for submission was also extended from June 30, 2025, to September 30, 2025. The extension was aimed to provide exporters additional time to comply with the regulatory requirements for availing RoDTEP benefits. This was also done to facilitate better compliance and ease operational burdens for the export community.
The RoDTEP scheme was introduced to ensure that embedded duties and taxes not covered by GST are refunded to exporters, thereby enhancing the competitiveness of Indian exports in the global market. Exporters are advised to utilize the extended timeline to submit their ARR within the stipulated period to avoid any disruptions in their claims. The government continues to streamline foreign trade policies to foster a more business-friendly environment and support India's export growth in line with its long-term economic objectives.
HS codes, or HSN codes in India, are standardized 6-digit, 8-digit, or 10-digit numerical codes used by customs authorities worldwide to classify traded goods. These codes determine duty rates, tariffs, and regulations for international shipping, ensuring accurate, uniform, and efficient processing. They identify products for import/export, ensuring compliance with international trade regulations. The first 6 digits are international (HS Convention), while subsequent digits are country-specific for detailed classification (e.g., 8-10 digits in the US or India).
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