RoDTEP Scheme (Remission of Duties or Taxes on Export Products)

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RoDTEP Scheme

What is the RoDTEP Scheme?

The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme provides the mechanism to reimburse exporters who have paid embedded taxes/duties on their products, however these taxes and duties could not be recovered through his or her normal channels. This program not only has significant financial benefits for exporters; however, it can also be difficult to understand due to the various rules concerning eligibility, documentation and claiming.

At AFLEO, we assist exporters with a full consulting solution to make the RoDTEP process less confusing by providing expert guidance and full service in:

RoDTEP eligibility assessment
ICEGATE & DGFT registration assistance
Documentation and compliance support
RoDTEP claim filing and tracking
Error resolution and claim optimisation
Advisory on maximising RoDTEP benefits

The RoDTEP scheme was introduced by the Government of India to replace the MEIS scheme and ensure that exporters receive refunds on unrebated taxes and duties. These include embedded taxes such as VAT on fuel, mandi tax, and electricity duties that are not refunded through other mechanisms.

The scheme aims to enhance the global competitiveness of Indian exporters by reducing overall export costs.

How the RoDTEP Scheme Works

Instead of offering an additional incentive for exports, the RoDTEP scheme eliminates the above-mentioned taxes by issuing electronic duty credit scrips. The RoDTEP scrips are utilized for paying the customs duties on exports or can even be transferred to other importers. The RoDTEP scheme offers reimbursement at various rates between 0.5% and 4% of the FOB value of export products, depending upon the export commodity and its HS code. In the RoDTEP scheme, the advantage depends upon the notional RoDTEP rates mentioned in the Appendices 4R (DTA exports) and 4RE (AA/EOU/SEZ exports).

Key Features of the RoDTEP Scheme

The RoDTEP scheme offers multiple features:

The RoDTEP scheme refunds embedded taxes not recoverable under other schemes
RoDTEP benefits are issued as electronic duty credit scrips, not cash refunds
Rates are product-specific and reviewed periodically by the government

Why Was RoDTEP Scheme Introduced?

India’s earlier export scheme, MEIS (Merchandise Exports from India Scheme), was found to be against WTO rules after the United States raised a complaint. To keep supporting exporters without violating international trade agreements, the government approved the RoDTEP scheme in March 2020 and implemented the RoDTEP scheme on 1 January 2021.

Benefits & Objectives

The RoDTEP Scheme offers several tangible benefits:

Reimbursement of unrefunded taxes: The RoDTEP scheme refunds central excise duties on fuel, state electricity duties, mandi tax, toll and stamp duty, embedded GST and other local levies. These RoDTEP refunds lower production costs and improve profit margins for exporters using the RoDTEP scheme.
Automated, transparent processing: Claims under the RoDTEP scheme are filed through the ICEGATE platform. RoDTEP refunds are credited as electronic duty credit scrips, not cash. This RoDTEP mechanism reduces paperwork and delays compared to traditional drawback processes.
Transferable credits: RoDTEP duty credits can be used to pay basic customs duty on imports or sold to other IEC holders. This transferability of RoDTEP scrips improves cash flow and provides flexibility in utilising RoDTEP benefits.
Improved competitiveness: By neutralising domestic taxes through the RoDTEP scheme, exporters can price goods more aggressively in international markets. The RoDTEP scheme enables exporters to compete globally by passing RoDTEP savings to customers or improving margins.
Wide coverage:The RoDTEP scheme spans most goods sectors and manufacturing industries. While some categories (steel, pharmaceuticals, chemicals) are currently excluded from the RoDTEP scheme.

RoDTEP vs MEIS: A Quick Comparison Table

Feature	RoDTEP	MEIS (Discontinued)
Objective	Refund embedded taxes/duties	Provide export incentives
WTO Compliance	Yes	No – found non-compliant
Mode of Incentive	Refund via e-scrip (duty credit)	Duty credit scrip
Eligibility	All sectors (as per notified list)	Specific sectors
Benefit Calculation	Based on notified % of FOB or per unit cap	Fixed % of FOB value
Transferability	Yes – e-scrip can be transferred	Yes
Tax Incidence Covered	Central, state, local embedded taxes	General incentive, not tax-specific
Implementation System	Through ICEGATE [Customs]	Through DGFT

Latest Updates and Notifications (2026)

Trade Notification No. 15/2026-27 dated 30 April 2026, Effective from 01 May 2026, significant updates have been introduced under the RoDTEP Scheme to align it with the amended First Schedule of the Customs Tariff Act, 1975. The notification provides for the addition of 142 new tariff lines across Schedules 4R and 4RE, while 50 tariff lines have been omitted, along with revisions in RoDTEP rates and value caps for multiple product categories including food items, herbal extracts, chemicals, and industrial goods. The revised rates range from approximately 0.50% to 3.00% under Schedule 4R and lower corresponding rates under Schedule 4RE. Additionally, certain product descriptions have been standardized to ensure clarity and uniform classification. Exporters are advised to review the updated tariff codes and rates carefully, as these changes may impact eligibility and benefit claims under the scheme. For complete details, click here to download the official notification PDF
CBIC Circular No. 20/2026-Customs dated 10th April 2026:
As per Circular, clarification has been issued regarding remission of duties under the RoDTEP scheme in cases of short realisation of export proceeds. It confirms that benefits may still be allowed in specific cases, including where compensation is received through ECGC, subject to prescribed conditions and RBI write-off compliance. Exporters must ensure proper documentation to avoid recovery of benefits.
Notification No. 66/2025-26 | Dated: 23 March 2026
RoDTEP rates and value caps have been restored to pre-23 February 2026 levels for all eligible exports made between 23 February 2026 and 31 March 2026.
The earlier 50% cap on benefits has been withdrawn, and exporters can now claim full RoDTEP benefits.
This notification supersedes Notification No. 60/2025-26 and its corrigendum dated 24 February 2026.3
As per DGFT Notification No. 60/2025-26,
RoDTEP rates have been reduced to 50% of the existing notified rates and value caps for all HS lines under Appendix 4R and 4RE, with immediate effect.
Corrigendum (24 February 2026):
The reduced RoDTEP rates and value caps do not apply to export products falling under ITC HS Chapters 01 to 24.
All other provisions remain unchanged. Exporters should review eligibility and benefit calculations accordingly.

The Government of India has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme by six months, making it valid up to 31st March 2026. The extension covers exports from DTA units, Advance Authorisation (AA) holders, EOUs, and SEZ units, with the existing notified RoDTEP rates continuing during this period.

DGFT has restored RoDTEP benefits for AA, EOU, and SEZ exporters from 1 June 2025. Exporters can again claim refunds of embedded taxes through ICEGATE based on updated Appendix 4RE rates.

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been extended for exports from Domestic Tariff Area (DTA) units until September 30, 2025. For Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs), the scheme’s benefits were extended only until February 5, 2025. Post this date, these categories are no longer eligible for RoDTEP support.

The RoDTEP scheme has been extended for DTA exports till 30 September 2025. Benefits were also extended to AA, EOU, and SEZ units till 5 February 2025. Rates are specified in Appendix 4R (DTA) and Appendix 4RE (AA/EOU/SEZ), typically ranging from 0.3% to 0.8% for most products.19th March 2025:Public Notification No. 51/2024-25 Subject: Extension of the last date for filing Annual RoDTEP Return (ARR) for Financial Year 2023-24

In exercise of powers conferred under paragraph 1.03 and 2.04 of the Foreign Trade Policy, 2023, as amended from time to time, the last date for filing Annual RoDTEP Return (ARR) as provided under Para 4.94 of Handbook of Procedure through Public Notice No. 27 dated 23.10.2024 for the financial year 2023-24 is extended from 31.03.2025 to 30.06.2025. Similarly the applicable grace period is also extended from 30.06.2025 to 30.09.2025.
Effect of the Public Notice: The last date for filing ARR is extended by three (3) months for RoDTEP availed for exports of Financial Year 2023-24.

Watch this short video on RoDTEP Scheme which explains the RoDTEP Scheme and application procedure as per the latest Government notification & finally, how can we at Afleo Consultants help you in getting your RoDTEP benefits from the Govt.

Rates & Caps

RoDTEP rates vary by product and are updated periodically by the government. For detailed and latest rate changes, refer to our page RoDTEP Rates – Updated – Key Changes Explained

Eligibility and Ineligible Categories

The RoDTEP scheme encompasses a broad spectrum of manufacturing and export industries, and the eligibility is reviewed from time to time by the government. Some of the major eligible sectors are:

Automobile and Auto Components
Engineering Goods
Chemicals and Pharmaceuticals
Marine Products
Agricultural and Processed Food Products
Gems and Jewellery (certain categories)

Sectors excluded from RoDTEP:

Export of imported goods is given under paragraph 2.46 of FTP.
The goods which are restricted for export beneath “Schedule-2 of Export Policy in ITC (HS).
Goods which are banned for export beneath “Schedule-2 of Export Policy in ITC (HS).
Supplies of products manufactured through DTA units to SEZ/FTWZ units.
Export of goods taken into use after manufacturing.
The Exports for which the electronic documentation in ICEGATE EDI has not been made.
The exported goods claiming the benefits of notification No. 32/1997- Customs dated 1st April 1997.
The goods are exported from Free Trade Zones (FTZ) Export Processing Zones(EPZ) or Special Economic Zones(SEZ).
The goods obtained or exported through EOU & produced in EHTP and BTP.
Deemed Exports.
The Export good is subjected to a minimum export price or export tax.
Products manufactured partly or wholly in a warehouse beneath section 65 of the Customs Act, 1962 (52 of 1962).
Goods exported under Advance License/Special advance license or tax-free import authorization.

Watch this video on RoDTEP Scheme which explains What are the duties & taxes going to be refunded? Expected Incentive rates? When is it going to be applicable? Who all are eligible to claim? Its application process & finally how can we at Afleo Consultants help you in getting your RoDTEP benefits from the Government.

Duties and Taxes Refunded

The RoDTEP scheme refunds a comprehensive range of embedded taxes and duties that are not recovered elsewhere. Understanding which taxes the RoDTEP scheme covers helps exporters maximize RoDTEP benefits.

Complete List of Duties and Taxes Refunded Under the RoDTEP Scheme

The following duties and taxes are refunded under the RoDTEP scheme:

Central excise duty on fuel (RoDTEP refund)
State VAT on fuel used in manufacturing (RoDTEP covered)
State electricity duty on power consumption (RoDTEP benefit)
Mandi tax on agricultural inputs (RoDTEP refund)
Stamp duties on export documentation (RoDTEP covered)
Toll taxes on transportation (RoDTEP benefit)
Embedded GST on inputs (RoDTEP refund)
Local levies and cess (RoDTEP covered)
Warehousing and storage taxes (RoDTEP benefit)

By refunding these embedded taxes, the RoDTEP scheme significantly reduces the overall cost of production and distribution for exporters utilizing the RoDTEP scheme.

Procedure to avail the benefits under RoDTEP Scheme

There are the four mandatory steps to avail the benefits under RoDTEP Scheme as follows –

Declaration in the Shipping Bills –

It is mandatory for the exporters to indicate in their Shipping Bill whether or not they intend to claim RoDTEP on the export items from 01/01/2021. Unlike Drawback, there will be no need to declare any separate code or schedule serial number for RoDTEP.

The exporter will have to make the following declarations in the SW_INFO_TYPE Table of the Shipping Bill for each item:

INFO TYPE	DTY
INFO QFR	RDT
INFO CODE	RODTEPY - If RoDTEP is availed. RODTEPN - If not availed.
INFO MSR	Quantity of the items in Statistical UQC as per the Customs Tariff Act for that item RITC
INFO UQC	UQC for the Quantity indicated in INFO_MSR

RoDTEP Declaration has to be mentioned in shipping bills

Additionally, for every item where “RODTEPY” is claimed in INFO CODE, a declaration has to be submitted in the Statement Table of the Shipping Bill as below.

Table Example

STATEMENT TYPE	DEC
STATEMENT CODE	RD001

Step‑by‑Step Claim Process

To successfully claim RoDTEP benefits, follow these steps:

Step 1: Declare RoDTEP Intent in Shipping Bills

It is mandatory for exporters to indicate in their Shipping Bill whether or not they intend to claim RoDTEP on the export items from 01/01/2021 onwards. Failing to declare RoDTEP in the shipping bill means you cannot claim RoDTEP benefits. Unlike drawback, there is no need to declare a separate code or schedule serial number for RoDTEP — just indicate RoDTEP intent. For each item where you claim RoDTEP benefits, make the RoDTEP declarations in the SW_INFO_TYPE Table of your Shipping Bill.

Step 2: File Export General Manifest (EGM) for RoDTEP Processing

After shipment, file the Export General Manifest (EGM) to allow customs authorities to process your RoDTEP claim. The RoDTEP claim processing begins after successful EGM filing, so ensure timely EGM submission for RoDTEP benefits.

Step 3: Register on ICEGATE Portal for RoDTEP Access

Obtain a Class 3 digital signature (DSC) and register on the ICEGATE portal (Indian Customs Electronic Gateway) to create your RoDTEP login credentials. ICEGATE registration is essential for accessing your RoDTEP benefits and claiming RoDTEP refunds.

Step 4: Create RoDTEP Credit Ledger Account on ICEGATE

Log into ICEGATE and set up your RoDTEP credit ledger account. Your RoDTEP credit ledger lets you:

View RoDTEP scrolls (approved claims)
Generate RoDTEP e-scrips (electronic duty credit)
Transfer RoDTEP scrips to other IEC holders
Track all RoDTEP transactions

Step 5: File RoDTEP Application and Generate E-Scrips

File an online RoDTEP application using your DSC. Customs will process RoDTEP claims on a first-in-first-out (FIFO) basis from 1 January 2021. Once customs approves your RoDTEP claim, a scroll with eligible RoDTEP amounts will appear in your ICEGATE account. Generate the RoDTEP e-scrip from the approved scroll. Once generated, your RoDTEP e-scrip can be used to pay basic customs duty on imports, transferred to another IEC holder electronically, or applied against your customs duty liabilities

You must file claims within one year from the shipping bill date or the date of scroll generation, whichever is later.

Documents Required

Prepare these documents before applying:

Class‑3 digital signature certificate (DSC).
Valid ICEGATE registration with user ID and password.
Import-Export Code (IEC).
Shipping bills and invoices.
RCMC (Registration‑cum‑Membership Certificate) from the relevant export promotion council.
e‑BRC (bank realisation certificate). Though not mandatory, obtaining e‑BRC before claiming reduces compliance risks.
Bills of lading or airway bills and GST returns for verification.

Common Mistakes to Avoid

Many claims are delayed or rejected due to avoidable errors:

Failing to declare RoDTEP in the shipping bill: This is the most common mistake. If you don’t declare RoDTEP in the shipping bill, you cannot claim RoDTEP benefits at all. Always indicate RODTEPY in the RoDTEP INFO CODE section for each line item. Without declaration, no RoDTEP refund will be processed, regardless of your product’s eligibility.
Using wrong HS codes: Misclassification of HS codes makes your products ineligible for RoDTEP benefits. Verify the correct HS code for your product before filing your RoDTEP claim. Wrong HS codes don’t just affect eligibility — they also impact the RoDTEP rate applied and can cause your entire claim to be rejected.
Missing EGM filing or ICEGATE deadlines: Delays in EGM filing or missing ICEGATE RoDTEP deadlines can render your RoDTEP claim invalid. File EGM immediately after shipment and submit your application within the required timeline. Missing RoDTEP deadlines means losing benefits entirely.
Not linking bank account and IEC on ICEGATE: If you don’t link your bank account and IEC code on ICEGATE, your RoDTEP refunds (e-scrips) cannot be credited to your ledger. This is a critical setup error. Complete your ICEGATE RoDTEP profile setup before filing any RoDTEP claims.
Ignoring rate caps: Claiming above the notified percentage or per-unit cap will lead to RoDTEP claim rejections. Each product under the RoDTEP scheme has a maximum RoDTEP rate. Verify the RoDTEP caps for your product (in Appendix 4R for DTA or Appendix 4RE for AA/EOU/SEZ) before calculating your benefit.
Misusing e‑scrips: Non‑compliance in transferring or utilising scrips can cause penalties.

Avoid these pitfalls by double‑checking declarations, classifications and deadlines, and consult professionals when in doubt.

FAQ’s

What Does RoDTEP Stand For?

RoDTEP stands for Remission of Duties and Taxes on Exported Products. The RoDTEP scheme is a government program designed to refund embedded taxes and duties that Indian exporters pay during production and distribution of export goods. The RoDTEP scheme replaced the earlier MEIS (Merchandise Exports from India Scheme) from 1 January 2021.

When Did the RoDTEP Scheme Start?

The RoDTEP scheme became effective on 1 January 2021. Although the RoDTEP scheme was approved by the Union Cabinet in March 2020, the actual implementation of RoDTEP began on January 1, 2021. The detailed RoDTEP scheme guidelines and rates were notified by the government on 17 August 2021. As of 2026, the RoDTEP scheme continues to operate with recent extensions and rate updates.

Why Was the RoDTEP Scheme Introduced?

The RoDTEP scheme was introduced to replace the MEIS scheme after the World Trade Organization (WTO) ruled that MEIS was non-compliant with international trade rules. The USA challenged India’s MEIS scheme at the WTO, claiming it violated trade regulations. To comply with WTO norms while continuing to support exporters, the government introduced the RoDTEP scheme. The RoDTEP scheme neutralizes embedded taxes that were not previously refunded, making Indian exports more competitive globally.

Which sectors are excluded?

Steel, pharmaceuticals and organic/inorganic chemicals currently fall outside the scheme. Goods exported through SEZs/FTWZs, re‑exports and products covered under other schemes are also excluded.

How are benefit rates determined?

Rates are notified by DGFT for each HS code; typical rates range from 0.3 % to 4.3 %. Caps are based on unrebated tax incidence, budget availability and product sensitivity.

Can I transfer my Rodtep e scrip?

Yes. RoDTEP scrips are transferable to any IEC holder registered on ICEGATE.

Where should representations be filed?

If you disagree with rates or exclusions, file representations with the RoDTEP Policy Committee (RPC) chaired by DGFT.

How Afleo Can Help

At Afleo, we translate complex policies into actionable steps so exporters can maximise their RoDTEP benefits. Our services include:

Guidance on correct shipping bill declarations and HS code classification.
Assistance with ICEGATE registration, digital signature procurement and creation of the RoDTEP credit ledger.
Preparation and submission of applications; tracking and following up on scrolls and e‑scrip generation.
Sale and purchase of duty credit scrips through a secure marketplace.
Continuous updates on policy changes, rates and sector‑specific notifications.

With our experience in DGFT compliance and international trade, we ensure your RoDTEP claims are accurate, timely and compliant. Contact us today to explore how the RoDTEP Scheme can reduce your export costs and enhance competitiveness.