diff --git a/contracts/src/Gateway.sol b/contracts/src/Gateway.sol
index 2d00670fe0..3e5d3e37f1 100644
--- a/contracts/src/Gateway.sol
+++ b/contracts/src/Gateway.sol
@@ -381,7 +381,6 @@ contract Gateway is IGateway, IInitializable {
         $.assetHubCreateAssetFee = params.assetHubCreateAssetFee;
         $.assetHubReserveTransferFee = params.assetHubReserveTransferFee;
         $.registerTokenFee = params.registerTokenFee;
-        $.destinationMaxTransferFee = params.destinationMaxTransferFee;
         emit TokenTransferFeesChanged();
     }
 
@@ -632,6 +631,5 @@ contract Gateway is IGateway, IInitializable {
         assets.registerTokenFee = config.registerTokenFee;
         assets.assetHubCreateAssetFee = config.assetHubCreateAssetFee;
         assets.assetHubReserveTransferFee = config.assetHubReserveTransferFee;
-        assets.destinationMaxTransferFee = config.destinationMaxTransferFee;
     }
 }
diff --git a/contracts/src/Params.sol b/contracts/src/Params.sol
index 7daddfe2ac..fc02989152 100644
--- a/contracts/src/Params.sol
+++ b/contracts/src/Params.sol
@@ -71,8 +71,6 @@ struct SetTokenTransferFeesParams {
     uint128 assetHubReserveTransferFee;
     /// @dev extra fee to register an asset and discourage spamming (Ether)
     uint256 registerTokenFee;
-    /// @dev The maximum fee (DOT) that can be sent to a destination parachain during a reserve transfer
-    uint128 destinationMaxTransferFee;
 }
 
 // Payload for SetPricingParameters
diff --git a/contracts/src/upgrades/rococo/GatewayV2.sol b/contracts/src/upgrades/rococo/GatewayV2.sol
index 6b7cfdc064..3918e3d790 100644
--- a/contracts/src/upgrades/rococo/GatewayV2.sol
+++ b/contracts/src/upgrades/rococo/GatewayV2.sol
@@ -6,7 +6,6 @@ import "../../Gateway.sol";
 
 import {UD60x18, convert} from "prb/math/src/UD60x18.sol";
 import {PricingStorage} from "../../storage/PricingStorage.sol";
-import {AssetsStorage} from "../../storage/AssetsStorage.sol";
 
 contract GatewayV2 is Gateway {
     constructor(
@@ -24,15 +23,11 @@ contract GatewayV2 is Gateway {
         }
 
         PricingStorage.Layout storage pricing = PricingStorage.layout();
-        AssetsStorage.Layout storage assets = AssetsStorage.layout();
 
-        if (pricing.multiplier != convert(0) || assets.destinationMaxTransferFee != 0) {
+        if (pricing.multiplier != convert(0)) {
             revert AlreadyInitialized();
         }
 
-        (UD60x18 multiplier, uint128 maxDestinationFee) = abi.decode(data, (UD60x18, uint128));
-
-        pricing.multiplier = multiplier;
-        assets.destinationMaxTransferFee = maxDestinationFee;
+        pricing.multiplier = abi.decode(data, (UD60x18));
     }
 }
diff --git a/contracts/test/Gateway.t.sol b/contracts/test/Gateway.t.sol
index 4f61684268..a1c76977a6 100644
--- a/contracts/test/Gateway.t.sol
+++ b/contracts/test/Gateway.t.sol
@@ -861,25 +861,13 @@ contract GatewayTest is Test {
                 SetTokenTransferFeesParams({
                     assetHubCreateAssetFee: createTokenFee * 2,
                     registerTokenFee: registerTokenFee,
-                    assetHubReserveTransferFee: sendTokenFee * 3,
-                    destinationMaxTransferFee: maxDestinationFee + 1
+                    assetHubReserveTransferFee: sendTokenFee * 3
                 })
             )
         );
         fee = IGateway(address(gateway)).quoteRegisterTokenFee();
         // since deliveryCost not changed, so the total fee increased only by 50%
         assertEq(fee, 7500000000000000);
-        // register token first
-        IGateway(address(gateway)).registerToken{value: fee}(address(token));
-
-        fee = IGateway(address(gateway)).quoteSendTokenFee(address(token), assetHubParaID, 0);
-        // Fee should increase
-        assertEq(fee, 10000000000000000);
-
-        ParaID destPara = ParaID.wrap(2043);
-        fee = IGateway(address(gateway)).quoteSendTokenFee(address(token), destPara, maxDestinationFee + 1);
-        // Max fee should increase
-        assertEq(fee, 35000000000250003);
     }
 
     bytes32 public expectChannelIDBytes = bytes32(0xc173fac324158e77fb5840738a1a541f633cbec8884c6a601c567d2b376a0539);
@@ -937,7 +925,7 @@ contract GatewayTest is Test {
         uint256 fee = IGateway(address(gateway)).quoteRegisterTokenFee();
         IGateway(address(gateway)).registerToken{value: fee}(address(token));
 
-        uint128 largeFee = 1e11 + 1; // greater than 10 DOT, 10 decimal places
+        uint128 largeFee = maxDestinationFee + 1; // greater than 10 DOT, 10 decimal places
 
         vm.expectRevert(Assets.InvalidDestinationFee.selector);
         fee = IGateway(address(gateway)).quoteSendTokenFee(address(token), destPara, largeFee);
diff --git a/smoketest/src/constants.rs b/smoketest/src/constants.rs
index 5a3c57420a..6948caee76 100644
--- a/smoketest/src/constants.rs
+++ b/smoketest/src/constants.rs
@@ -65,10 +65,6 @@ lazy_static! {
 		.unwrap_or("20000000000".to_string())
 		.parse()
 		.unwrap();
-	pub static ref RESERVE_TRANSFER_MAX_DESTINATION_FEE: u128 = env::var("RESERVE_TRANSFER_MAX_DESTINATION_FEE")
-		.unwrap_or("10000000000000".to_string())
-		.parse()
-		.unwrap();
 	pub static ref EXCHANGE_RATE: u128 = env::var("EXCHANGE_RATE")
 		.unwrap_or("2500000000000000".to_string())
 		.parse()
diff --git a/smoketest/tests/set_token_transfer_fees.rs b/smoketest/tests/set_token_transfer_fees.rs
index e529a7bba6..bcbb48fb9e 100644
--- a/smoketest/tests/set_token_transfer_fees.rs
+++ b/smoketest/tests/set_token_transfer_fees.rs
@@ -29,7 +29,6 @@ async fn set_token_transfer_fees() {
 			*CREATE_ASSET_FEE,
 			*RESERVE_TRANSFER_FEE,
 			U256([*REGISTER_TOKEN_FEE, 0, 0, 0]),
-			*RESERVE_TRANSFER_MAX_DESTINATION_FEE,
 		)
 		.encode_call_data(&test_clients.bridge_hub_client.metadata())
 		.expect("encoded call");