RoDTEP Scheme (India): Complete Guide for Exporters

Overview

RoDTEP stands for Remission of Duties and Taxes on Exported Products. It is one of India's flagship export incentive schemes, administered by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, with the Central Board of Indirect Taxes and Customs (CBIC) handling disbursement.

The scheme reimburses exporters for embedded central, state and local duties and taxes that are incurred in the process of manufacturing and distributing export goods but are not refunded under any other mechanism (such as GST input tax credit or Duty Drawback). It came into effect on 1 January 2021.

RoDTEP is built on a globally accepted principle of international trade: taxes and duties should not be exported. Goods should compete in world markets on their true cost, not inflated by domestic levies that stay embedded in the price.

Why RoDTEP Was Launched

RoDTEP replaced the earlier Merchandise Exports from India Scheme (MEIS).

MEIS gave exporters incentives as a flat percentage of export value, but it was structured as an export subsidy. In a dispute brought by the United States, a World Trade Organization (WTO) panel ruled that MEIS and several similar Indian export incentives were inconsistent with WTO rules, because they rewarded exports directly rather than merely neutralising taxes.

India needed a scheme that was WTO-compliant. RoDTEP was designed to meet that standard by functioning as a remission (refund) of un-refunded taxes rather than a subsidy. Instead of paying exporters an incentive, it gives back taxes they have already borne — which is permitted under international trade rules.

The scheme therefore serves two purposes at once: it keeps India's export incentives on the right side of WTO commitments, and it makes Indian exports more price-competitive globally.

What Taxes Does RoDTEP Cover?

RoDTEP targets the hidden, embedded taxes that accumulate across the supply chain and are not captured by GST credits or Drawback. These typically include:

• VAT and excise duty on fuel used in transportation and in running captive power plants
• Mandi tax (agricultural market levies) on farm inputs
• Electricity duty on power used in manufacturing
• Stamp duty on export documentation
• Duties on inputs consumed in the production of exported goods where no other refund applies

These are precisely the costs that earlier schemes left stuck inside the export price. RoDTEP is designed to release them back to the exporter.

How RoDTEP Works

RoDTEP operates through a fully electronic, end-to-end digital process:

1. At the time of export, the exporter declares intent to claim RoDTEP in the shipping bill (by marking the RoDTEP claim flag against each item).
2. Customs processes the shipping bill and, after export is confirmed, generates the eligible rebate amount.
3. The rebate is issued as a transferable duty credit in the form of an electronic scrip (e-scrip), maintained in the exporter's electronic credit ledger on the ICEGATE portal.
4. The exporter can use the e-scrip to pay Basic Customs Duty on their own imports, or transfer/sell it to another importer.

Because the credit is transferable, exporters who do not import can still monetise the benefit by selling the scrips in the market.

RoDTEP Rates

RoDTEP rates are notified product-wise / HS-code-wise by the DGFT in Appendix 4R (and the extended Appendix 4RE). Key points:

• Rates are expressed as a percentage of the FOB (Free On Board) value of the exported goods.
• They have historically ranged from roughly 0.3% to 4.3%, depending on the product.
• Many products also carry a per-unit value cap (a ceiling amount per quantity), so the rebate is the lower of the percentage or the cap.
• Rates vary by sector; the exporter must check the exact rate against the eight-digit HS code of the product being exported.

Exporters should always confirm the current applicable rate from the live Appendix 4R/4RE list on the DGFT website, as rates are revised periodically.

Who Is Eligible?

RoDTEP is broad-based and covers most exporters, including:

• Manufacturer exporters and merchant exporters (traders)
• Exporters of notified products listed in Appendix 4R/4RE
• There is no minimum turnover threshold to claim
• The scheme has progressively been extended to cover Advance Authorisation (AA) holders, Export Oriented Units (EOUs) and Special Economic Zone (SEZ) units for eligible exports

The goods must be exported directly from India, and the exporter must have a valid Import Export Code (IEC).

Certain categories are excluded, such as re-exported imported goods, exports subject to minimum export price or export duty, goods manufactured in bond, and some restricted or prohibited items. The excluded list is specified in the scheme guidelines.

How RoDTEP Helps Exporters

The scheme delivers several tangible benefits:

• Lower effective export cost by refunding taxes that were previously embedded and unrecoverable
• Improved price competitiveness in international markets
• Better cash flow, since e-scrips can be used or sold relatively quickly
• Transferability, allowing non-importing exporters to monetise the benefit
• Predictability and transparency, thanks to published rates and a fully digital claim process
• WTO-compliant certainty, reducing the risk of India's incentives being challenged and withdrawn

How to Claim RoDTEP — Step by Step

1. Ensure you hold a valid IEC and are registered on ICEGATE.
2. Confirm your product is listed in Appendix 4R/4RE and note the applicable rate and cap.
3. While filing the shipping bill, declare the intent to claim RoDTEP for each eligible item.
4. Complete the export and ensure Export General Manifest (EGM) filing.
5. Customs processes and generates the scroll of eligible amounts.
6. Create an e-scrip in your ICEGATE credit ledger from the processed amounts within the permitted time window.
7. Use the e-scrip to pay Basic Customs Duty on imports, or transfer it to another party.

Documents and Prerequisites

Exporters should keep the following ready:

• Import Export Code (IEC)
• ICEGATE registration with a valid Digital Signature Certificate (DSC)
• Shipping bills with the RoDTEP claim declared
• Export invoices and packing lists
• Class 3 DSC for scrip generation and transfer
• Correct HS classification of the product

Recent Updates (as of 2026)

RoDTEP has continued to evolve:

• In late 2025 / early 2026, the government temporarily rationalised (reduced) RoDTEP rates for certain export products as part of a budgetary review.
• Following representations from exporters, the DGFT subsequently restored the earlier RoDTEP rates for eligible export products in March 2026.
• The scheme has been extended, with existing rates intact, up to 30 September 2026, giving exporters continuity while longer-term rates are finalised.

Because the policy is being actively reviewed, exporters should track DGFT notifications for the latest rates, coverage and validity.

Common Mistakes to Avoid

• Not declaring the RoDTEP claim in the shipping bill — the claim cannot be added later if omitted.
• Using an incorrect HS code, leading to the wrong rate or rejection.
• Missing the time window to generate the e-scrip in the credit ledger.
• Assuming all products are covered — always verify against Appendix 4R/4RE.
• Double-claiming a benefit already refunded under another scheme, which is not permitted.

Best Practices

• Verify HS classification and the current rate before every export.
• Always flag the RoDTEP claim at the shipping-bill stage.
• Reconcile scrolls and scrips regularly on ICEGATE.
• Generate e-scrips promptly to avoid lapse.
• Maintain clean records of shipping bills, invoices and EGM filings.
• Keep watch on DGFT notifications for rate and coverage changes.

RoDTEP vs. Other Schemes

• RoDTEP vs. Duty Drawback: Drawback refunds customs and central excise duties on imported/excisable inputs; RoDTEP refunds the other embedded taxes (fuel VAT, mandi tax, electricity duty, stamp duty) not covered by Drawback or GST. Both can apply to the same export on different cost elements.
• RoDTEP vs. MEIS: MEIS was an export subsidy based on export value and was found WTO-inconsistent. RoDTEP is a tax-remission mechanism designed to be WTO-compliant.
• RoDTEP vs. Advance Authorisation: Advance Authorisation allows duty-free import of inputs against an export obligation; RoDTEP rebates embedded taxes on the finished export. They address different cost layers and, for eligible cases, can be complementary.

Frequently Asked Questions

What is the full form of RoDTEP?

Remission of Duties and Taxes on Exported Products.

When was RoDTEP launched?

It came into effect on 1 January 2021, replacing the MEIS scheme.

Is RoDTEP a subsidy?

No. It is a remission of embedded, un-refunded taxes and duties, structured to be WTO-compliant — unlike the export-subsidy design of MEIS.

How is the RoDTEP benefit paid?

As a transferable electronic scrip (e-scrip) in the exporter's ICEGATE credit ledger, usable to pay Basic Customs Duty or sellable to other importers.

Can merchant exporters claim RoDTEP?

Yes. Both manufacturer and merchant exporters of eligible notified products can claim it.

Do I need to declare the claim in advance?

Yes. The RoDTEP claim must be declared in the shipping bill at the time of export; it cannot be added afterwards.

Conclusion

RoDTEP is a cornerstone of India's current export-promotion framework. By refunding the embedded duties and taxes that older schemes left stuck in the export price — and by doing so in a WTO-compliant way — it lowers the effective cost of Indian exports and strengthens their competitiveness abroad. For exporters, the keys to getting full value are simple: classify products correctly, declare the claim at the shipping-bill stage, generate e-scrips on time, and stay current with DGFT rate notifications.