RoDTEP Scheme — Remission of Duties & Taxes on Exported Products

RoDTEP covers most merchandise exports from India, but there are exclusions. Products exported under Advance Authorization, exports from SEZ/EOU units, products receiving specific PLI benefits, and products where embedded taxes are deemed negligible (zero rate) are excluded. The eligible product list with applicable rates is notified by DGFT and updated periodically. Check the latest notification for your specific HS code.

MEIS provided incentives of 2–7% of FOB value as a flat export subsidy, which was WTO non-compliant. RoDTEP refunds only the actual embedded taxes (0.3–4.3%) identified through supply chain analysis, making it WTO-compliant. MEIS was product-and-country specific; RoDTEP is product-specific but not country-specific. RoDTEP rates are generally lower than MEIS rates but are sustainable and cannot be challenged at WTO.

Yes. RoDTEP scrolls (duty credits) are freely transferable. You can sell them to any importer who can use them to pay Basic Customs Duty. Transfers are done electronically through ICEGATE. The market typically values scrolls at 97–99% of face value. This is particularly useful for exporters who don't import goods themselves and want to monetise the credit immediately.

No. RoDTEP claims are integrated into the shipping bill filed on ICEGATE. When you file the shipping bill, you simply declare the RoDTEP claim with the applicable scheme code. After export completion and EGM filing, the scroll is automatically generated and credited to your ICEGATE account. No separate application, documentation, or post-export filing is required — the process is fully automated.

Yes, you can claim both simultaneously. However, when claiming RoDTEP, Duty Drawback is available only at the lower (reduced) rate. The reduced rate excludes the customs duty component on inputs that is already covered conceptually under RoDTEP. Alternatively, you can choose to claim only Duty Drawback at the higher (composite) rate without RoDTEP. A CA/CS expert can help determine which combination maximises your total benefit.

RoDTEP refunds embedded taxes that are not covered under GST credit or Duty Drawback. These include: electricity duty/cess on power used in manufacturing, mandi tax on agricultural produce, fuel taxes (excise on diesel used in transportation and generators), stamp duty on export documents, property tax on factory/warehouse, toll charges, and other local body levies. These taxes get embedded in product costs and make Indian exports less competitive globally.

RoDTEP duty credit scrolls are typically valid for 1 year from the date of generation. Within this period, the credit must be utilised for import duty payment or transferred to another party. Expired scrolls cannot be used or revived. Exporters should plan their import schedule or transfer timing accordingly. If you don't have import needs, selling the scroll shortly after generation is advisable to avoid expiry risk.