India has extended the Remission of Duties and Taxes on Exported Products scheme through December 31, 2026, preserving export-tax refunds for another three months without changing the existing rates or value caps.
The RoDTEP extension was issued by the Directorate General of Foreign Trade in Notification No. 41/2026-27 dated September 30. The previous period ended on the same date, so the notification maintains continuity for eligible shipments from October 1.
RoDTEP extension covers major export units
The extended programme applies to exports from Domestic Tariff Area units, Export Oriented Units and Special Economic Zones, as well as shipments made by Advance Authorisation holders.
RoDTEP reimburses certain central, state and local duties, taxes and levies that exporters incur during the manufacture and distribution of goods but cannot recover through another mechanism. Examples include electricity duty and value-added tax on fuel used to transport export products.
The Economic Times reported that refund rates remain between 0.3% and 3.9%, depending on the product. The September 30 notification leaves those rates, applicable value caps and other scheme conditions unchanged through the end of December.
What the three-month continuation means
The decision removes the immediate uncertainty created by the programme’s scheduled September 30 expiry. Eligible exporters can continue accounting for the refunds while pricing orders and planning shipments during the October-December quarter.
Financial Express reported that the programme covers more than 10,780 products across eligible categories. Refunds are issued through transferable duty-credit scrips, which can be used against specified customs duties or transferred under the scheme’s rules.
Apparel and garment exports are generally supported under the separate Rebate of State and Central Taxes and Levies programme rather than RoDTEP.
Export support amid trade disruption
The extension comes as Indian exporters face higher freight costs, trade disruption linked to conflicts and changing tariff conditions in major markets. By refunding embedded domestic taxes, the programme is intended to prevent those costs from being added to the overseas price of Indian goods.
RoDTEP was introduced in January 2021 as a replacement for the Merchandise Exports from India Scheme, which faced challenges under World Trade Organization rules. Financial Express reported that benefits worth ₹77,262.60 crore were disbursed between April 2021 and December 2025.
The publication also reported a ₹15,728 crore allocation for the programme in the 2026-27 financial year, including ₹5,346 crore for past liabilities. The Economic Times cited a lower ₹10,000 crore current-year allocation from an earlier PTI report. Because those figures differ, neither should be treated as the definitive available balance without updated government expenditure data.
Short extension leaves longer-term question open
The latest decision gives exporters operational certainty for one quarter but does not establish the programme’s status beyond December 31. Businesses using the benefit will therefore still need to monitor DGFT notifications for any further continuation or changes to product rates and caps.
