RoDTEP Scheme explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) refunds duties, taxes and levies borne on an exported product that are not otherwise refunded. Paragraph 4.54 of the Foreign Trade Policy, 2023 states the objective and the operating principles, paragraph 4.55 lists the exports that are not eligible, and Notification 41/2026-27 dated 30 September 2026 continues the Scheme up to 31 December 2026. This guide explains those rules. It states no rate and no value cap, because the Policy does not print them: they are in Appendix 4R and Appendix 4RE, published on the DGFT portal.
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. It also takes in Notification No. 41/2026-27 dated 30 September 2026. Later Notifications, Public Notices and Trade Notices should be checked before you act. If you want to check whether a particular export is eligible before you plan around the rebate, our legal consultation service can help.
RoDTEP aims to refund currently un-refunded duties, taxes and levies, at the Central, State and local level, borne on the exported product, including prior-stage taxes on inputs (paragraph 4.54(i)). The rebate is granted at a notified percentage of FOB value, with a value cap per unit wherever required, for items under the notified 8-digit HS code (4.54(vii)), and is issued as a transferable electronic scrip (4.54(ix)). It does not cover duties already exempted, remitted or credited (4.54(ii)). Notification 41/2026-27 of 30 September 2026 continues the Scheme up to 31st December 2026 for DTA units, Advance Authorisation holders, SEZ units and EOUs at the rates and caps applicable on September 30, 2026.
What paragraph 4.54 says
| Sub-paragraph | Rule |
|---|---|
| (i) | The objective is to refund currently un-refunded duties, taxes and levies at Central, State and local level borne on the exported product, including prior-stage cumulative indirect taxes on goods and services used in production, and such indirect levies on distribution of the exported product |
| (ii) | The rebate is not available for duties and taxes already exempted, remitted or credited |
| (iii) | Ceiling rates are determined by a Committee in the Department of Revenue, Drawback Division, with representation of the Department of Commerce, DGFT, line ministries and experts, on sectors prioritised by the Departments of Commerce and Revenue |
| (iv)-(v) | The overall budget is finalised by the Ministry of Finance in consultation with the Department of Commerce; the Scheme operates in a budgetary framework each financial year, with calibrations as needed; no remission of arrears or contingent liabilities is carried to the next year |
| (vi) | The sequence across sectors, prioritisation and the degree of benefit within the recommended rates and ceilings are decided and notified by the Department of Commerce in consultation with the Department of Revenue |
| (vii) | A rebate at a notified rate as a percentage of FOB value, with a value cap per unit wherever required, for items under the notified 8-digit HS code; for some items a fixed amount per unit may be notified. Rates and caps are notified in Appendix 4R, and in Appendix 4RE for products manufactured by Advance Authorisation holders (except Deemed Exports), EOUs and SEZ units |
| (viii) | The rebate is subject to receipt of sale proceeds within the time allowed under FEMA, failing which it is deemed never to have been allowed; it does not depend on realisation at the time the rebate is issued |
| (ix) | Issued through end-to-end digitisation as a transferable duty credit or electronic scrip kept in an electronic ledger by CBIC; manner of application, time period, records and recovery provisions to be notified by CBIC |
| (x) | The Scheme takes effect for exports from 1st January 2021; for the categories in 4.55 (x), (xi) and (xii), the date is decided later under 4.55B |
The Policy says "efforts would be made" to review the rates annually and to notify them well before the financial year (paragraph 4.54(vii)). Our article on paragraph 4.54 goes through each sub-paragraph. The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992.
Exports that are not eligible: paragraphs 4.55 to 4.55B
Paragraph 4.55 says these categories of exports or exporters are not eligible for the rebate:
- export of imported goods covered under paragraph 2.46 of the Policy;
- exports through trans-shipment, meaning goods originating in a third country but trans-shipped through India;
- export products subject to a minimum export price or export duty;
- products restricted for export under Schedule 2 of the export policy in ITC(HS);
- products prohibited for export under Schedule 2 of the export policy in ITC(HS);
- Deemed Exports;
- supplies of products manufactured by DTA units to SEZ or FTWZ units;
- products manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962;
- products manufactured or exported availing the benefit of Customs Notification 32/1997 dated 1st April, 1997;
- exports for which electronic documentation in ICEGATE EDI has not been generated, and exports from non-EDI ports; and
- goods that have been taken into use after manufacture.
The list is printed with eleven entries, while paragraph 4.54(x) and paragraph 4.55B speak of 4.55 (x), (xi) and (xii); the drafting is as printed. Paragraph 4.55A reserves the Government's right to modify the categories for inclusion or exclusion later. Paragraph 4.55B says inclusion of exports in the last categories, and their rates, will be decided on the recommendation of the RoDTEP Committee. Our article on paragraphs 4.55 to 4.55B covers each entry. The manufacture-in-warehouse entry connects to the scheme explained in our guide to Customs bonded manufacturing under section 65.
Notification 41/2026-27
As notified on 30 September 2026 (Notification No. 41/2026-27), issued under section 5 of the Act read with paragraph 1.02 of the Policy, the RoDTEP Scheme shall continue up to 31st December 2026 and shall be available for exports made by DTA units, Advance Authorisation holders, SEZ units and EOUs. The existing rates and value caps notified in Appendix 4R and Appendix 4RE, as applicable on September 30, 2026, continue unchanged during that period, and the other terms and conditions remain unchanged. The Notification does not amend any paragraph of the Policy, and the chapter file consulted on 2 October 2026 does not mention it. This article states nothing about the position after 31 December 2026; check the DGFT website for any later Notification. The copy is headed "To be published in the Gazette of India" and carries no S.O. number.
How RoDTEP sits with other schemes
Paragraph 4.01 lists RoDTEP with Duty Drawback and RoSCTL as duty remission schemes. Paragraph 5.04(e) of the Policy counts exports under Duty Drawback, RoSCTL and RoDTEP, among others, towards the export obligation under the EPCG Scheme. Paragraph 4.54(ii) is the guard against double relief: duties already exempted, remitted or credited are outside the rebate. For a comparison of the two remission schemes, see our guide to Duty Drawback against RoDTEP. The e-scrip and the annual return are covered in our article on RoDTEP e-scrips and the annual return and in what the Scheme looks like in October 2026.
A practical example
Sundarbans Cane Works, an invented manufacturer exporter, wants to know whether a shipment will earn the rebate. First it checks paragraph 4.55: it is not exporting an imported good under paragraph 2.46, not shipping through trans-shipment, and the goods are not subject to a minimum export price or export duty. Its shipping bill is generated in ICEGATE EDI at an EDI port, so entry 10 does not bar it. It then looks up the 8-digit HS code of the product in Appendix 4R, or in Appendix 4RE if it is an Advance Authorisation holder, to see the notified rate and any cap; this article does not state either. The rebate is issued as an e-scrip, and it is subject to receipt of sale proceeds within the FEMA period under paragraph 4.54(viii). It makes the claim while Notification 41/2026-27 continues the Scheme up to 31st December 2026.
Need help with an export incentive position?
Eligibility turns on small facts, such as the port, the policy status of the item and whether duty exemption is already used. Our legal consultation service can review the position, and our dispute resolution team can assist where a claim is withheld or recovered.
Key takeaways
- The rebate refunds un-refunded duties, taxes and levies and is not available for duties already exempted, remitted or credited (paragraph 4.54(i), (ii)).
- It is a percentage of FOB value with a value cap per unit wherever required; rates are in Appendix 4R and 4RE, not in the Policy text.
- It is issued as a transferable e-scrip in a CBIC ledger.
- Paragraph 4.55 excludes eleven printed categories, including Deemed Exports and exports from non-EDI ports.
- Notification 41/2026-27 continues the Scheme up to 31st December 2026 at the rates and caps of September 30, 2026.
Read next
- Paragraph 4.54: RoDTEP objective and operating principles
- Paragraph 4.55: exports not eligible for RoDTEP
- Paragraphs 4.56 to 4.59: RoDTEP e-scrip, monitoring and annual return
- Section 5 of the Foreign Trade (Development and Regulation) Act, 1992
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.