West Asia crisis: Full benefits restored under RoDTEP scheme

The government on Monday restored full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to provide support to exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor.

The commerce and industry ministry withdrew the earlier notification of halving the RoDTEP rates and value caps except for agricultural and processed food products "in view of the evolving geopolitical situation and its implications for maritime trade".

"The RoDTEP rates and value caps as specified... as applicable on February 22, 2026, are hereby restored with effect from February 23, 2026, to March 31, 2026, for all eligible export products," the Directorate General of Foreign Trade said in a notification.


Exporters were earlier grappling with the high US tariffs and are now facing challenges from the West Asian crisis triggered by the US-Israel attacks on Iran last month.

The conflict has pushed up sea and air freight rates, while insurance premiums are also rising.

"Recent developments in West Asia have led to challenges in maritime logistics, including changes in routing and transit patterns. These have had an impact on logistics costs and shipping schedules for export consignments moving to or through the region," the ministry said.

The scheme, launched in 2021, provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and not being reimbursed under any other mechanism at the Centre, state or local level.

Refunds under the scheme range from 0.3-3.9%. The scheme is valid till March-end.