The Association Indian (AAI) has urged the Director-General of Foreign Trade (DGFT), Ministry of Commerce and Industry, to exclude aluminium and aluminium products from the 50 per cent reduction in the Remission of Duties and Taxes on Exported Products (RoDTEP) rates.
AAI said its request follows the reduction in RoDTEP rates across sectors by a flat 50 per cent with immediate effect.
Earlier, RoDTEP rates for aluminium exports were nearly 3 per cent for domestic tariff area (DTA) units and 2.2 per cent for (Sepcial Economic Zones) SEZ units.
In detailed representation to the DGFT, AAI has sought exclusion of export products under ITC HS Chapter 76 (Aluminium and Articles thereof) from the scope of the February 23, 2026, order.
It is similar to the exemption already granted to products under ITC HS Chapters 01–24.
Unrebated taxes
The notification of RoDTEP rates for the 2026–27 financial year is based on the actual incidence of unrebated taxes applicable to the aluminium sector, for both DTA and SEZ units.
AAI said India’s aluminium exports, valued at around $7 billion or nearly 2 per cent of the country’s total goods exports, are facing increasing pressure due to escalating tariff and nontariff barriers in key markets.
At the same time, the domestic aluminium industry is confronting a double challenge: export opportunities are shrinking as global tariff regimes tighten, while imports into India continue to rise sharply.
EU indirect barrier
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 US continue to face 50 per cent duties under Section 232 Tariffs.
The association said Mexico has increased customs duties on aluminium products to 10–35 per cent from January 2026, while rising Chinese-funded aluminium capacities in Indonesia are further intensifying competition in global markets.
AAI said the aluminium industry had already submitted detailed data and made representations before the committee constituted to recommend RoDTEP rates.
According to industry submissions, the actual incidence of unrebated taxes on exported aluminium products are at around 8–9 per cent of FoB (free on board) value for DTA units and 6–7 per cent for SEZ units.
AAI said extending the exemption to aluminium exports would help maintain competitiveness for Indian producers in global markets.