CT Logo

Seeks relief similar to exemptions already granted to products under ITC HS Chapters 01–24

The Aluminium Association Indian (AAI) has urged the Director General of Foreign Trade (DGFT), Ministry of Commerce & Industry, to exclude aluminium and aluminium products from the scope of the government’s recent notification that reduced Remission of Duties and Taxes on Exported Products (RoDTEP) rates by 50% with immediate effect.

In a detailed representation to the DGFT, AAI has sought:

Exclusion of export products under ITC HS Chapter 76 (Aluminium and Articles thereof) from the scope dated February 23, 2026, similar to the exemption already granted to products under ITC HS Chapters 01–24;

Notification of RoDTEP rates for FY 2026–27 based on the actual incidence of unrebated taxes applicable to the aluminium sector, for both Domestic Tariff Area (DTA) and Special Economic Zone (SEZ) units; and

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

AAI also noted that India’s aluminium exports, valued at around $7 billion or nearly 2% 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.

The European Union’s Carbon Border Adjustment Mechanism has created an indirect tariff barrier ranging from 7% to 50%, while exports to the United States continue to face 50% duties under Section 232 Tariffs. Mexico has also increased customs duties on aluminium products to 10–35% from January 2026, while rising Chinese-funded aluminium capacities in Indonesia are further intensifying competition in global markets.

AAI noted that 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 stands at around 8–9% of FoB value for DTA units and 6–7% for SEZ units.

AAI stated that extending the exemption to aluminium exports would help maintain competitiveness for Indian producers in global markets.