Notification No. 10/2025-26, Dated 26-05-2025
1. Regulatory Overview
Through Notification No. 10/2025-26, dated 24 May 2025, the Directorate General of Foreign Trade (DGFT) has amended Appendix 4R of the RoDTEP schedule to synchronise every tariff line with the revised First Schedule to the Customs Tariff Act, 1975, as substituted by the Finance Act, 2025.
2. Why the Change Was Needed
| Trigger | Details |
|---|---|
| Finance Act, 2025 tariff overhaul | More than 450 HS codes were split, merged, or re-described in the Customs Tariff (e.g., new sub-headings for EV components, green hydrogen equipment, speciality steel). |
| RoDTEP link-age | RoDTEP benefits are computed code-wise; any mismatch between the export-incentive schedule and the statutory tariff leads to claim rejections at customs EDI. |
| Policy mandate under FTP 2023 | Para 4.01(d) of the Foreign Trade Policy requires DGFT to realign drawback/RoDTEP schedules within 90 days of any tariff change. |
The May 2025 notification therefore replaces older tariff lines, assigns fresh RoDTEP rates and value caps, and removes codes that no longer exist.
3. What Exactly Has Changed in Appendix 4R
- Re-coded HS lines – All affected headings now carry the eight-digit descriptions exactly as in the post-Finance-Act tariff.
- Re-calibrated benefit rates – Where the Board of Drawback’s cost-incidence study suggested material variance (± 0.4 percentage points or more), the incentive percentage has been tweaked.
- Updated value caps – Maximum per-unit benefit ceilings have been reset, especially for sensitive sectors such as cotton yarn, footwear, and electronics assemblies.
- Cross-references to Appendix 4RE – A fresh cross-walk ensures that Advance Authorisation/SEZ/EOU exporters claiming RoDTEP under Appendix 4RE see the same codes and caps.
The complete matrix is effective for export invoices with Let Export Orders (LEO) dated 01 May 2025 onward.
4. Accessing the Revised Schedule
Path – DGFT portal → Regulations › RoDTEP → “Alignment of RoDTEP Schedule w.e.f. 01.05.2025” (PDF download) dgft.gov.in
Both Appendix 4R (Domestic Tariff Area exports) and Appendix 4RE (AA/EOU/SEZ exports) are available in searchable PDF and CSV formats.
5. Impact Analysis for Exporters & Intermediaries
| Stakeholder | Immediate Implications |
|---|---|
| Exporters | • Re-map product masters in ERP to the new HS codes. • Re-compute costing where RoDTEP percentage or cap has changed. • Revise LUT/Bond declarations if rate hike lifts total remission above projected limits. |
| Customs Brokers & Forwarders | • Update tariff tables in ICEGATE utilities to avoid “invalid scheme-code” errors at E-Sanchit upload. • Inform clients of any code shifts that affect SB filings post-1 May 2025. |
| GST/FTP Consultants | • Review pending claims – shipments before 30 Apr 2025 stay on old rates; shipments on/after 1 May migrate automatically. |
| Banks (AD Category-I) | • Monitor higher RoDTEP scrip generation that may alter exporter EEFC utilisation and working-capital cycles. |
6. Compliance Checklist
- Download & circulate the new Appendix 4R/4RE to planning, logistics, and finance teams.
- Align HS codes in all export invoices, packing lists, and shipping bills filed on or after 01-05-2025.
- Validate RoDTEP claims in the EDI before submission; mismatched codes will auto-reject under RMS.
- Track value-cap goods (textiles, pharma, steel) to ensure FOB invoicing does not exceed the notified ceiling.
- Keep documentary proofs (HS mapping sheet, costing tables) ready for any post-audit or DGFT scrutiny.
7. Transitional Clarifications
- No retrospective benefits – Exports between 01 Oct 2024 and 30 Apr 2025 continue under the earlier schedule even if the HS code now appears with a higher rate.
- Pending shipping bills (filed < 1 May but LEO after 1 May) – Customs will apply the date-of-LEO rule; ensure the shipping bill is amended to the new eight-digit code before LEO to capture the revised benefit.
- E-scrip issuance – The DGFT ICEGATE interface has been patched; e-scrips generated from 6 May 2025 already reflect the new rates/caps.
8. Key Takeaways
The RoDTEP refresh is a routine but critical synchronisation exercise following the 2025 tariff revamp. Exporters who promptly realign product codes and pricing structures can continue to enjoy seamless incentive credit, avoid EDI rejections, and maintain cash-flow predictability in FY 2025-26.
