Aluminium industry seeks exemption from 50% RoDTEP rate cut on exports

Industry body urges DGFT to exclude aluminium products from 50% RoDTEP rate reduction, citing rising tariff barriers, shrinking export opportunities and growing global competition

The Aluminium Association of India (AAI) has urged the Directorate General of Foreign Trade under the Ministry of Commerce and Industry to exempt aluminium and aluminium products from the recent 50 per cent reduction in Remission of Duties and Taxes on Exported Products (RoDTEP) rates.

 

In a representation to the DGFT, AAI requested that export products under ITC HS Chapter 76 (Aluminium and Articles thereof) be excluded from the scope of the government’s February 23, 2026 notification that halved RoDTEP rates across sectors with immediate effect. 

The industry body said aluminium exports should receive relief similar to exemptions already granted to products under ITC HS Chapters 01–24. 

AAI also sought notification of RoDTEP rates for FY27 based on the actual incidence of unrebated taxes applicable to the aluminium sector for both Domestic Tariff Area (DTA) units and Special Economic Zone (SEZ) units.

 

The request follows the government notification which reduced RoDTEP rates across sectors by a flat 50 per cent with immediate effect. Earlier, RoDTEP rates for aluminium exports were approximately 3 per cent for DTA units and 2.2 per cent for SEZ units.

 

The representation comes at a time when India’s aluminium exports, valued at about $7 billion and accounting for nearly 2 per cent of the country’s total goods exports, are facing increasing pressure due to rising tariff and non-tariff barriers in key markets.

 

According to AAI, the domestic aluminium industry is dealing with a “double challenge”, with export opportunities shrinking as global tariff regimes tighten while imports into India are rising sharply.

 

The association pointed to multiple international developments affecting exports. The European Union’s Carbon Border Adjustment Mechanism has created an indirect tariff barrier ranging from 7 per cent to 50 per cent, while exports to the United States continue to face 50 per cent duties under Section 232 tariffs.

 

Mexico has also increased customs duties on aluminium products to 10–35 per cent from January 2026, and expanding Chinese-funded aluminium capacities in Indonesia are intensifying competition in global markets.

 

AAI said the aluminium industry had earlier submitted detailed data and representations to the committee constituted to recommend RoDTEP rates. Industry submissions indicate that the actual incidence of unrebated taxes on exported aluminium products is about 8–9 per cent of the FoB value for DTA units and 6–7 per cent for SEZ units.

 

The association said extending the exemption from the RoDTEP rate cut to aluminium exports would help maintain the competitiveness of Indian producers in global markets.