By Sanskriti Global Exports by Himanshu Gupta

Navigating the Shifting Tides: RoDTEP Reforms, EU Logistics Snarls, and FTA Headway

Date: October 23, 2025

Good morning. In the complex theatre of global trade, today presents a classic mix of domestic opportunity, international disruption, and diplomatic progress. For Indian import-export professionals, the developments of the last 24 hours are not just headlines; they are direct inputs for strategic decision-making. We're seeing a significant overhaul of a key export incentive scheme, a crippling logistics crisis brewing at a major European hub, a positive step forward in a long-awaited trade deal, and a price shock in a critical industrial commodity. Understanding the interplay of these events is paramount to maintaining a competitive edge. Let’s dissect the day's critical updates and analyse their immediate impact on your operations.

Today's Factual Summary: The Global Trade Briefing

Our desk has consolidated the most impactful news items affecting Indian trade corridors. Here is a factual summary of the key events shaping the landscape today.

1. Government Announces Major RoDTEP Scheme Expansion and Tech-Driven Compliance

The Ministry of Commerce and Industry, through a notification from the Directorate General of Foreign Trade (DGFT), has announced a significant expansion of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Effective immediately, the scheme now includes several high-growth sectors previously excluded, most notably pharmaceuticals (select tariff lines), chemicals, and steel products. The announced rates for these new sectors range from 0.8% to 2.5%. However, the announcement came with a crucial caveat: the DGFT is simultaneously rolling out a new AI-powered system for cross-verifying shipping bills and input tax credit data to curb fraudulent claims. The Ministry has stated that this move aims to broaden support for 'Make in India' exports while ensuring the scheme's fiscal integrity.

2. Labour Strikes at Port of Rotterdam Cripple EU-Bound Cargo Movement

Widespread labour strikes have brought operations at the Port of Rotterdam, Europe's largest port, to a near standstill. Dockworker unions initiated the strike action over wage and automation disputes, causing a massive backlog of container vessels. Shipping lines have begun imposing heavy congestion surcharges and are actively rerouting vessels to other, smaller European ports like Antwerp and Hamburg, which are now facing their own capacity strains. The disruption is expected to last at least a week, with knock-on effects on inland logistics, including rail and truck transport, reverberating across the continent.

3. Milestone Achieved in India-UK Free Trade Agreement (FTA) Negotiations

Sources close to the ongoing India-UK FTA negotiations have confirmed a major breakthrough. Negotiators have reportedly closed the challenging chapter on 'Services and Investment', one of the most complex components of the deal. While the full text remains confidential pending the final agreement, this development signals strong momentum. The chapter is understood to include provisions for easing the movement of skilled professionals, mutual recognition of certain professional qualifications, and creating a more predictable regulatory environment for cross-border investments in sectors like financial services, legal advisory, and technology.

4. Supply Disruptions in South America Trigger Sharp Rise in Copper Prices

Global commodity markets are reacting to news of significant operational shutdowns at two major copper mines in Chile due to unforeseen geological challenges. This has choked a substantial portion of the global supply, leading to an overnight 9% surge in copper prices on the London Metal Exchange (LME). Analysts predict this price volatility will persist for the quarter, directly impacting raw material costs for a vast array of manufacturing industries worldwide.

Implications for Indian Import-Export Professionals

Translating these global and domestic events into actionable intelligence is critical. Here is our analysis of what this means for your business, right now:

• On the RoDTEP Overhaul:
  • Opportunity: Exporters in the newly included pharmaceutical, chemical, and steel sectors must immediately engage with their customs brokers and trade consultants to assess eligibility and begin the process of claiming benefits. This is a direct boost to your bottom line, but requires swift action to capitalise on it from the earliest possible shipping bill.
  • Warning: The new AI-based compliance system is a game-changer. All exporters, not just the new ones, must conduct a rigorous internal audit of their documentation. Ensure there are no discrepancies between your GST filings and shipping bill declarations. A minor error that might have been overlooked previously could now trigger automated red flags, leading to delays and potential penalties.
• On the Rotterdam Port Crisis:
  • Immediate Action: If you have EU-bound shipments, contact your freight forwarder or shipping line without delay. Discuss contingency plans, including the viability and cost implications of rerouting to alternative ports. Be prepared for significantly longer transit times and budget for congestion surcharges.
  • Client Communication: Proactively communicate with your European buyers about potential delays. Transparency is key to managing relationships during a supply chain crisis. Provide revised ETAs and work collaboratively on solutions. This is also a crucial time to review the force majeure clauses in your contracts.
• On the India-UK FTA Development:
  • Strategic Planning for Service Exporters: While not yet ratified, this is a strong signal for service-oriented businesses (IT, ITeS, financial consulting, architecture) to intensify their UK market research. Begin identifying potential partners and understanding UK regulatory and certification requirements. This groundwork will allow for first-mover advantage once the FTA is in effect.
  • Patience for Goods Exporters: For merchandise exporters, particularly in sectors like textiles, automotive, and agriculture, the key chapters on Rules of Origin and tariffs are still under negotiation. Continue to monitor developments closely, but do not make binding financial decisions based on this news alone.
• On the Copper Price Surge:
  • Importers' Dilemma: Importers of copper and copper-based components (e.g., for electronics, wiring, EV parts) must immediately review their procurement strategy. Explore hedging options on commodity exchanges to lock in prices and mitigate further risk. Renegotiate with suppliers or, if feasible, explore short-term sourcing from regions unaffected by the disruption.
  • Exporters' Pricing Pressure: If you are an exporter of finished goods that use copper as a primary input, you must recalculate your product costing. You may need to absorb some of the cost, pass it on to the buyer, or a combination of both. Open and honest price negotiations with your clients, backed by market data, will be essential.

Conclusion: The Imperative of Agility

Today’s landscape is a microcosm of the modern trade environment: a domestic policy incentive coupled with a compliance challenge, a physical logistics bottleneck demanding immediate rerouting, a diplomatic step forward promising future gains, and a commodity shock forcing a raw material rethink. The overarching lesson is the non-negotiable need for agility. The businesses that will thrive are those that can quickly adapt their compliance frameworks, reconfigure their supply chains, plan for future market access, and manage volatile input costs in real-time. Stay informed, stay flexible, and continue to build resilience into every facet of your import-export operations.

Source: Original