The Office of the Commissioner of Customs, NS-II, Jawaharlal Nehru Custom House (JNCH), Nhava Sheva, has issued Public Notice No. 126/2026 dated October 7, 2026, clarifying that exports made under the Duty-Free Import Authorization (DFIA) Scheme are not eligible for benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
The Public Notice, issued pursuant to clarification received from the Directorate General of Foreign Trade (DGFT), directs exporters and Customs Brokers to ensure that RoDTEP benefits are neither claimed nor availed in respect of exports made under the DFIA Scheme.
It further requires exporters who have already availed inadmissible benefits to repay or reverse the amounts, together with applicable interest, if any, in accordance with law.
RoDTEP Benefits Originally Restricted under DGFT Notification No. 19/2015-2020
The Customs authority has referred to CBIC Drawback Division Letter F. No. CBIC-140602/4/2026-DBK-CBIC dated September 7, 2026, explaining the eligibility conditions governing the RoDTEP Scheme.
Under DGFT Notification No. 19/2015-2020 dated August 17, 2021, RoDTEP benefits were not available for specified categories of exports undertaken by Advance Authorization (AA) holders, Export Oriented Units (EOUs), Special Economic Zone (SEZ) units and holders of Duty-Free Import Authorization (DFIA).
The restriction formed part of the original framework governing eligibility for remission benefits under the RoDTEP Scheme.
DGFT Notification No. 70/2023 Extended RoDTEP Benefits to AA, EOU and SEZ Exports but Not DFIA
Subsequently, DGFT Notification No. 70/2023 dated March 8, 2024, amended the list of categories ineligible for RoDTEP benefits.
Consequently, with effect from March 11, 2024, the RoDTEP benefit was extended to exports of products manufactured by Advance Authorization holders, excluding deemed exports, Export Oriented Units and Special Economic Zone units.
However, the amendment did not include exports made under the DFIA Scheme.
Accordingly, although specified AA, EOU and SEZ exports became eligible for RoDTEP benefits, exports made under DFIA continued to remain outside the eligible categories.
DGFT Confirms Non-Eligibility of DFIA Exports for RoDTEP Benefits
In view of representations received from the exporting community regarding the eligibility of DFIA exports, the matter was referred to the Directorate General of Foreign Trade for clarification.
DGFT has clarified that exports made under the DFIA Scheme are not eligible for benefits under the RoDTEP Scheme.
Based on this clarification, the Commissioner of Customs has directed all exporters, Customs Brokers, trade associations and other stakeholders to ensure strict compliance with the prescribed eligibility conditions.
Importantly, the Public Notice clarifies the existing ineligibility of DFIA exports; it does not announce a fresh withdrawal of an exemption previously extended to the DFIA category.
Customs Flags Approximately ₹9.75 Crore of Inadmissible RoDTEP Accruals in Annexure-A
In a significant compliance development, the Customs authority has enclosed Annexure-A, containing details of exporters identified as having availed inadmissible RoDTEP benefits in relation to DFIA exports.
The annexure covers the period March 11, 2024, to September 10, 2026.
An aggregation of the figures provided in Annexure-A indicates approximately ₹9,75,07,625 (₹9.75 crore) in RoDTEP accruals across 8,282 shipping bills.
The annexure contains 348 entries, representing 345 distinct Importer Exporter Codes (IECs), as certain IECs appear more than once.
These figures are calculated from the annexure accompanying the Public Notice, which records RoDTEP accruals. Individual repayment or reversal obligations are to be determined in accordance with the applicable legal provisions.
Exporters Directed to Repay or Reverse Inadmissible RoDTEP Benefits with Applicable Interest
Under Paragraph 6 of Public Notice No. 126/2026, exporters identified in Annexure-A have been directed to take necessary steps for repayment or reversal of the inadmissible RoDTEP amounts.
Such repayment or reversal must include applicable interest, if any, in accordance with the provisions of law.
Further, Paragraph 8 extends the repayment instruction to other exporters who may have availed similar inadmissible RoDTEP benefits, even if their names do not appear in the annexure.
Accordingly, exporters who have undertaken shipments under DFIA should review their historical RoDTEP claims and identify any benefits that may have been wrongly claimed or availed.
30-Day Deadline for Reporting Repayment Details to Customs
Under Paragraph 7 of Public Notice No. 126/2026, the concerned exporters are required to intimate payment particulars to the Drawback Section of Jawaharlal Nehru Custom House within 30 days from the date of issuance of the Public Notice.
The payment details must be communicated through the designated email address: drawback.jnch@gov.in
As the Public Notice was issued on October 7, 2026, affected exporters should ensure compliance within the prescribed 30-day period.
The reporting requirement is specifically linked to the repayment of inadmissible RoDTEP amounts identified by the Customs authority.
Non-Compliance May Lead to Customs Recovery Proceedings
The Customs authority has expressly warned that failure to furnish repayment particulars within the prescribed period may result in initiation of proceedings under the appropriate provisions of Customs law and the Rules and Regulations framed thereunder.
Such proceedings may also include insertion of an alert for recovery of Government dues.
Accordingly, exporters should treat the Public Notice as an important compliance direction and undertake timely reconciliation of RoDTEP benefits claimed against DFIA exports.
Immediate Implications for Exporters and Customs Brokers
The clarification has significant implications for exporters operating under multiple export promotion schemes, particularly those availing Advance Authorization, DFIA, EOU or SEZ benefits.
Exporters should distinguish between the eligibility extended to specified AA, EOU and SEZ exports with effect from March 11, 2024, and the continued non-eligibility of exports undertaken under DFIA.
A review of relevant shipping bills, DFIA authorisations, RoDTEP declarations, benefit accruals and utilisation records would help exporters determine their exposure and undertake necessary corrective action.
Customs Brokers and export compliance teams should also ensure that RoDTEP benefits are not claimed in future shipping bills relating to exports made under DFIA.
Public Notice Takes Immediate Effect
The Commissioner of Customs has stated that Public Notice No. 126/2026 dated October 7, 2026, comes into force with immediate effect for the information and compliance of all concerned.
The Public Notice has been issued by Shri Giridhar G. Pai, Commissioner of Customs, NS-II, JNCH, Nhava Sheva, and advises stakeholders to bring any implementation difficulties to the notice of the Commissioner.
The development underscores the need for exporters to carefully verify eligibility under export incentive schemes and ensure that benefits under one scheme are not claimed in circumstances where the governing provisions specifically prohibit such claims.
The key compliance takeaway is that exports made under DFIA remain ineligible for RoDTEP benefits, and exporters who have availed inadmissible benefits must initiate repayment or reversal, along with applicable interest, and comply with the prescribed reporting requirements to avoid recovery proceedings.
The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/Customs-PUBLIC-NOTICE-NO.-126-2026.pdf
