RoDTEP Scheme: Rates, Eligibility & Claim Process
TL;DR - Summary
- What is the RoDTEP scheme? - RoDTEP (Remission of Duties and Taxes on Exported Products) is a Government of India scheme that refunds embedded state and local taxes on exported goods.
- Who is eligible for RoDTEP? - Manufacturer and merchant exporters of Indian-origin goods are eligible for RoDTEP with no minimum turnover, provided they hold a valid Importer-Exporter Code and a verified account on the ICEGATE customs portal.
- What are the current RoDTEP rates? - RoDTEP Rates range roughly from 0.3% to 4.3% of a shipment's value depending on the exact product code, and the scheme currently runs through 30 September 2026.
- How is RoDTEP different from Duty Drawback? - RoDTEP refunds embedded taxes like fuel duty as a transferable digital credit, while Duty Drawback refunds customs duty on imported inputs as cash, and both can be claimed together.
What Is Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme is a Government of India initiative introduced in 2021 to help exporters recover eligible taxes, duties and levies that remain embedded in the cost of exported goods but cannot be reclaimed through existing tax refund mechanisms.
Under RoDTEP, eligible exporters receive a digital duty credit called an e-scrip. The benefit is generally calculated as a percentage of the shipment's Free on Board (FOB) value, although certain products may qualify for a fixed amount per unit.
Eligible costs can include fuel-related taxes, electricity duties, mandi fees, market cess and certain non-creditable taxes on inputs and services, subject to the applicable product conditions.
RoDTEP replaced the Merchandise Exports from India Scheme (MEIS) and was introduced to address unrefunded taxes and duties embedded in exported goods rather than provide a general export incentive. For the latest applicable rates and updates, always check the RoDTEP scheme rates, notifications and benefits.
Who Is Eligible for RoDTEP Scheme?
Manufacturer exporters and merchant exporters of Indian-origin goods are eligible for RoDTEP, with no minimum turnover requirement, provided several specific conditions are also met.
Who is eligible
No turnover threshold applies to either manufacturer or merchant exporters, which keeps the scheme open to small and large exporters alike. Additionally,
- A valid Importer-Exporter Code, along with a registered, verified ICEGATE account carrying a valid Digital Signature Certificate, is required. Without both, e-scrips cannot be received even if every other condition is met.
- The exported product must fall under the RoDTEP schedule of notified items, and the correct HS code has to be declared on the shipping bill itself.
- Two schedules apply here, i.e., Appendix 4R for exporters operating from Domestic Tariff Areas and Appendix 4RE for exporters in Special Economic Zones, Export Oriented Units, and Advance Authorisation holders. Coverage for this second group has shifted across successive notifications, so checking the current DGFT notification before assuming eligibility for a shipment in these categories is worth doing every time.
- The RoDTEP option must be explicitly selected at the time of filing the shipping bill. It cannot be added retroactively once that filing is complete.
Who is not eligible
Products under export restrictions or prohibitions, deemed exports, and goods manufactured in bonded warehouses all fall outside the scheme. Apart from this,
- Re-exported imported goods are excluded too, since RoDTEP applies only to goods of genuine Indian origin.
- Exports through trans-shipment and specifically notified ineligible categories do not qualify, nor do shipping bills filed without the RoDTEP declaration or without ICEGATE EDI-generated documents.
✅ PRO TIP
An eBRC is the proof that export payment was actually received. If funds arrive through a payment route that is not RBI-compliant, eBRC generation can be delayed, and a delayed eBRC holds back the RoDTEP claim itself.
Beyond RoDTEP, several other export incentive schemes exist for Indian exporters, covered in export promotion schemes.
How Does the RoDTEP Scheme Work?
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme provides a rebate on eligible central, state and local duties, taxes and levies that remain embedded in exported goods and are not refunded through another mechanism. The benefit is generally calculated against the Free on Board (FOB) value of the export at the rate notified for the relevant tariff line, subject to any applicable per-unit cap.
The benefit is issued electronically as a transferable RoDTEP e-scrip through the Indian Customs Electronic Gateway (ICEGATE). The e-scrip can be used to pay Basic Customs Duty (BCD) on eligible imports or transferred to another eligible ICEGATE user.
Covered vs Uncovered Expenses Under RoDTEP
- Covered expenses: RoDTEP can cover eligible embedded costs such as central and state taxes on fuel used for self-transport or machinery, electricity duty, mandi fees, market cess, municipal or property-related taxes and certain non-creditable Goods and Services Tax (GST) on input services, subject to the applicable scheme conditions.
- Not covered expenses: Taxes or duties that have already been recovered through GST input tax credit, Duty Drawback or another applicable remission mechanism cannot be claimed again under RoDTEP. The benefit also does not apply where the relevant taxes or duties are already addressed through specific advance authorisation or bonded manufacturing arrangements, subject to the applicable provisions.
RoDTEP Operational Workflow
The RoDTEP claim generally moves through four stages:
- Step 1: Declaration: The exporter declares the RoDTEP claim in the shipping bill for each eligible export item. The claim needs to be selected at the time of filing because an exporter cannot simply add the RoDTEP claim later for a shipment where it was not declared.
- Step 2: Processing: After the carrier files the Export General Manifest (EGM), Customs processes the shipping bill and determines the admissible RoDTEP amount using the applicable notified rate and any relevant per-unit cap.
- Step 3: Generation: Once Customs processes the claim, a RoDTEP scroll containing the eligible shipping bills and amounts is made available in the exporter's ICEGATE account. The exporter can then create the e-scrip by selecting the relevant shipping bills through the ICEGATE e-Scrip facility.
- Step 4: Utilisation: The generated e-scrip can be used towards Basic Customs Duty (BCD) on eligible imports. It can also be transferred to another eligible IEC holder through ICEGATE.
Note: The exact RoDTEP rate depends on the product's tariff line and the notification applicable to the export. Rates and value caps can change, so exporters should check the current notified rate for their specific product rather than rely on a single scheme-wide percentage.
What Are The Benefits of RoDTEP Scheme?
RoDTEP's core benefits are the rebate of previously unrecoverable taxes, transferable e-scrips that can be monetised, a WTO-compliant structure, improved cash flow, and fully digital processing.
- Rebate of un-refunded taxes: Local levies such as municipal taxes, coal cess, and stamp duty on export documents have historically escaped both GST input credits and standard duty drawbacks. Exporters absorbed these costs on their own. RoDTEP recovers them.
- Transferable e-scrips: These digital credits, tracked on ICEGATE, can be used directly against Basic Customs Duty on imports or sold to another importer with BCD liability. An exporter with no imports of their own can still realise the cash value by selling the scrip.
- WTO compliance: The scheme is structured as a transparent tax neutralisation framework rather than an explicit export subsidy. This shields Indian exporters from the kind of international trade challenges that eventually ended MEIS.
- Improved cash flow: Recovering costs that were previously unrecoverable lowers overall production overhead and puts working capital back into active manufacturing and merchant export pipelines.
- Digital transparency: Automated processing on ICEGATE speeds up verification and credit generation, with no manual paperwork or relationship manager calls involved.
E-scrip validity is worth a direct note here, since published guides genuinely disagree on this point, quoting one year, eighteen months, or two years. The usable life is tied to each e-scrip's own creation date, shown in the exporter's ICEGATE ledger. Checking the validity printed on the actual scrip beats trusting any generic figure quoted elsewhere.
What Are the Current RoDTEP Scheme Rates?
RoDTEP rates are notified as a percentage of the Free on Board (FOB) value of exported goods, with a per-unit value cap applying to some products. The applicable rate is linked to the product's 8-digit Harmonized System (HS) code, so exporters need to check the rate for their exact tariff line rather than rely on a general sector-wide figure.
As per Directorate General of Foreign Trade (DGFT) Notification No. 74/2025-26 dated 31 March 2026, the RoDTEP Scheme was extended from 1 April 2026 to 30 September 2026 at the rates and value caps applicable on 31 March 2026. Exporters should therefore treat 30 September 2026 as the current end date unless the scheme is extended further.
A temporary 50% reduction in RoDTEP rates and value caps, introduced through DGFT Notification No. 60/2025-26 dated 23 February 2026, was withdrawn with effect from 23 March 2026. The earlier notified rates and caps were consequently restored.
Illustrative RoDTEP Rate Bands for 2026
The following bands are illustrative rather than fixed rates for every product within a sector. The actual benefit depends on the exact 8-digit HS code and the applicable notified rate and value cap.
| HS-code segment | Typical RoDTEP rate (% of FOB) | Notes |
|---|---|---|
| Base engineering goods | 0.3% to 1.0% | Per-unit value cap may apply |
| Textiles and apparel | 1.0% to 2.5% | Sector-specific caps may apply |
| Chemicals and plastics | 0.5% to 2.0% | Rate varies by tariff line |
| Higher-rebate lines | Up to 4.3% | Applies to selected notified products |
Rates can be higher for certain textile, apparel and other labour-intensive product lines. To identify the rate applicable to an export, check the exact 8-digit HS code in the current DGFT RoDTEP schedule (Appendix 4R). A mismatch in the HS code declared on the shipping bill can result in the wrong rate being applied or affect the claim.
The percentage rate and any applicable per-unit value cap must be checked together, since both can determine the final RoDTEP credit.
✅ PRO TIP
Check the latest DGFT or Central Board of Indirect Taxes and Customs (CBIC) notification and confirm the correct 8-digit HS code before filing each shipping bill. A classification mismatch can result in a lower credit or affect eligibility for the benefit.
RoDTEP vs Duty Drawback: Key Differences
RoDTEP and Duty Drawback can both be claimed on the same shipping bill, because the two schemes rebate different things rather than competing for the same benefit.
| Feature | RoDTEP | Duty Drawback |
|---|---|---|
| What it refunds | Embedded, non-creditable central, state, and local taxes (fuel, electricity, mandi tax) | Customs duties paid on imported inputs used in the export |
| Form of benefit | Transferable e-scrip | Cash into the exporter's bank account |
| Basis | Percentage of FOB value, per HS code | Duty content, per drawback schedule |
| Claimed via | Shipping bill declaration on ICEGATE | Shipping bill declaration, processed by customs |
| Both on one bill? | Yes, alongside Duty Drawback | Yes, alongside RoDTEP |
Where most of an exporter's cost recovery would come from customs duty paid on imported inputs, Duty Drawback becomes the more relevant scheme of the two. Exporters relying heavily on imported inputs should weigh both schemes rather than optimising for just one.
How To Claim RoDTEP Scheme: A Step-by-Step Guide
Claiming RoDTEP benefits involves a series of steps, starting with declaring the scheme in the shipping bill and ending with generating the e-scrip. Here is how the RoDTEP claim process works:
Step 1: Declare RoDTEP in the shipping bill
When filing the electronic shipping bill, explicitly select the RoDTEP scheme code for each eligible item. This declaration activates the benefit and cannot be added once the Export General Manifest is filed.
✅ PRO TIP
Declare RoDTEP intent at the shipping bill stage itself. Missing this step is the single most common reason claims get rejected, since it cannot be added retroactively once the Export General Manifest is filed.
Step 2: Customs processes the claim after EGM
Once the carrier files the Export General Manifest, the customs system checks the shipping bill for RoDTEP eligibility and computes the rebate against the notified rate and per-unit cap.
Step 3: Scroll generation on ICEGATE
After verification, customs generates a scroll listing all eligible shipping bills and the admissible RoDTEP amount for each. This scroll uploads to the exporter's ICEGATE account, tagged to their IEC, confirming the benefit has been approved.
Step 4: Create the RoDTEP credit ledger account
Logging into ICEGATE with a valid IEC, the exporter creates a RoDTEP credit ledger account under the e-scrip section. This is a one-time setup, a precondition for receiving any credits, and it requires a valid Class 3 Digital Signature Certificate.
Step 5: Generate the e-scrip
Selecting the relevant scroll and shipping bills in ICEGATE moves the credit from scroll status to usable scrip status. The e-scrip then appears in the ledger, ready for use or transfer.
Step 6: Use or transfer the e-scrip
The e-scrip can offset Basic Customs Duty on the exporter's own imports at Bill of Entry filing, or it can be sold to another domestic importer with BCD liability. E-scrips can only offset BCD, not IGST, anti-dumping duty, or other import levies.
Note: The HSN code determines the rate that applies. The refund percentage follows the notified HSN code of the exported item, typically between 0.3% and 4.3% of FOB value.
Which Documents Are Needed to Claim Benefits under RoDTEP Scheme?
Claiming RoDTEP benefits requires a valid IEC, the shipping bill, an eBRC, and a DSC. ICEGATE registration, export invoice and packing list, bill of lading, EDI registration, and GST returns where applicable complete the list.
- Importer-Exporter Code: This must stay valid and active. Without it, no ICEGATE account can be created and no e-scrip can be received.
- Shipping Bill: The single most critical document in the claim, since the RoDTEP flag has to be selected on it at the time of export filing.
- Electronic Bank Realisation Certificate: Proof that export payment was received from the overseas buyer. Funds arriving through a non-compliant or unrecognised payment route delay eBRC generation, which in turn holds back the RoDTEP claim.
- Digital Signature Certificate: Required for signing documents and accessing ICEGATE for ledger and e-scrip operations, with a Class 3 DSC needed specifically for the authorised signatory.
- Registered ICEGATE Portal Account: Needed for scroll receipt, credit ledger creation, and e-scrip generation and tracking.
- Export Invoice and Packing List: Proof of goods sent abroad, and the values on these documents must match the shipping bill exactly to avoid processing delays or partial credits.
- Bill of Lading or Airway Bill: Proof that the goods were physically dispatched.
- EDI Registration: Required for digital communication with customs.
- GST Returns, where applicable: These help demonstrate export-linked GST compliance during verification.
What Is RoDTEP Annual Return (ARR)?
The RoDTEP Annual Return, officially Appendix 4RR, is a mandatory yearly compliance filing submitted on the DGFT portal. It reconciles the e-scrips an exporter earned during the year against their actual factory expenses.
Why the ARR exists
- WTO Compliance Proof: The ARR gives DGFT data-backed evidence that India is neutralising actual domestic un-refunded taxes per shipment and not distributing arbitrary export subsidies.
- Preventing Over-Claiming: RoDTEP issues e-scrips using a standard formula rather than measuring actual tax paid per shipment. The ARR forces high-volume exporters to confirm their real un-refunded taxes match or exceed the benefit received.
Who must file and when
- Exporters with total RoDTEP claims under ₹1 crore in the financial year are exempt from filing the ARR.
- Exporters whose total RoDTEP claims exceed ₹1 crore must file the ARR, submitted on the DGFT portal by 31 March of the subsequent financial year.
What the ARR covers, the ₹50 lakh rule
- Exporters do not report every product individually. Filtering happens by 8-digit HS code.
- Separate detailed ARR filings are required only for individual HS codes where claims exceed ₹50 lakh.
- If total claims exceed ₹1 crore but no single HS code crosses ₹50 lakh, only a data sheet for the single highest-claimed HS code is required.
Data the ARR requires
The return covers production and export values; meaning total units manufactured, quantities exported, and FOB value realised. It also needs an input tax breakdown, line-by-line consumption data for raw materials, electricity, and fuels, including the specific un-refunded tax paid on each. A final comparison then demonstrates to DGFT that the cumulative embedded tax value matches or justifies the e-scrips collected.
Consequences of missing the ARR
Missing the deadline causes ICEGATE to automatically suspend scroll generation, freezing all pending and future RoDTEP claims at the port until compliance is restored. A composition fee also applies for late filing. DGFT has set this fee at different amounts across recent extension notices, so confirming the current figure directly with DGFT is worth doing before assuming a specific number. Raw material bills, fuel logs, and utility records also need preserving for 5 years from the filing date, in case of risk-based scrutiny.
⚠️ COMMON MISCONCEPTION
Missing the ARR deadline is not just a fine. ICEGATE freezes all RoDTEP scroll generation until the return is filed, which further means future claims stop accumulating too and not just the one tied to the missed return.
RoDTEP Scheme Real-World Example
Consider an Indian garment exporter shipping USD 15,000 worth of readymade garments to a buyer in the US. If the applicable exchange rate is approximately ₹83 per USD, the shipment has an illustrative FOB value of ₹12,45,000.
Assume the product's applicable RoDTEP rate is 0.5%. The actual rate must be checked against the product's exact HS code and the prevailing RoDTEP schedule.
RoDTEP credit = 0.5% × ₹12,45,000 = ₹6,225.
Once the eligible RoDTEP amount is available in the exporter's ICEGATE ledger, the exporter can generate the e-scrip. If the exporter later imports a textile machinery part carrying ₹6,225 in Basic Customs Duty (BCD), the e-scrip can be used to pay that BCD, thereby reducing the cash duty outflow by ₹6,225. ICEGATE confirms that RoDTEP e-scrips can be used for BCD on imports.
For a larger example, suppose a mid-sized textile exporter records ₹10 crore in annual FOB exports and the applicable average RoDTEP rate across its products is 1.2%. The resulting credit would be approximately ₹12 lakh. If the exporter later has a ₹12 lakh BCD liability on an eligible machinery import and has sufficient valid e-scrip credit available, that credit could cover the BCD liability.
The basic RoDTEP cycle is therefore:
Export goods > declare RoDTEP in the shipping bill > eligible credit becomes available on ICEGATE > generate the e-scrip > use or transfer the e-scrip.
Note: The 0.5% and 1.2% rates above are illustrative. RoDTEP rates are product- and HS-code-specific. The applicable rate and any per-unit cap should always be checked before calculating the expected credit.
What Are The Common Mistakes While Claiming RoDTEP Scheme and How to Fix Them?
The most common RoDTEP mistakes revolve around skipping the declaration step, mapping the wrong HS code, letting data mismatch across documents and assuming e-scrips cover more than they actually do.
- Mistake 1: Not selecting RoDTEP on the shipping bill: If the RoDTEP flag is not selected at filing, the claim cannot be made later. The fix is a checklist shared with the Customs House Agent that explicitly marks "Claim RoDTEP" on every export job sheet.
- Mistake 2: Wrong or outdated HS code mapping to Appendix 4R: An incorrect HS code produces a lower credit or none at all. Reviewing HS codes periodically with a CHA or consultant, and cross-checking the current Appendix 4R before quoting rates prevents this.
- Mistake 3: Mismatch between invoice and shipping bill data: Value or quantity mismatches cause processing delays or partial credits. Building internal procedures so invoice, packing list and shipping bill data align before EGM filing closes this gap.
- Mistake 4: Not creating the ICEGATE RoDTEP credit ledger: Some exporters stop right after scroll generation and never create the e-scrip ledger thereby leaving approved credits idle. Treating ICEGATE registration and ledger creation as a one-time onboarding task, completed before the first shipment avoids this.
- Mistake 5: Ignoring DGFT or CBIC notifications on rate changes: Planning export margins on outdated rates leads to over-promising or under-pricing. Subscribing to DGFT updates or a trusted trade advisory and reviewing RoDTEP notifications quarterly, keeps pricing current.
- Mistake 6: Assuming e-scrips can offset all import duties: E-scrips only pay Basic Customs Duty, not IGST, anti-dumping duty, or other import levies. Training finance and CHA teams that RoDTEP is BCD-only, with other import duties planned separately, avoids the confusion.
- Mistake 7: No reconciliation between RoDTEP credits and Bill of Entry payments: Using e-scrips without reconciling against Bill of Entry records leads to lost tracking and compliance gaps. A running register of e-scrips generated, applied, and remaining, matched against BOE records, closes this loop.
How Does Skydo Help Receive International Payments?
RoDTEP benefits depend on proper export documentation and realisation of export proceeds. Receiving international payments through a compliant channel and maintaining the required FIRA and eBRC records can help exporters keep their export documentation in order and support their incentive claims.
Skydo is a cross-border payment aggregator that helps Indian goods exporters, freelancers and Amazon sellers receive international payments. It is designed for receiving money from abroad rather than sending international payments.
Skydo provides virtual receiving accounts in USD, EUR, GBP, SGD, AUD and CAD, with account setup taking about 5 minutes and no monthly fees. Its pricing is transaction-based:
- $19 for payments up to $2,000
- $29 for payments between $2,001 and $10,000
- 0.3% for payments above $10,000.
Skydo also uses live FX rates with zero FX margin. Every transaction includes an automatically generated FIRA (Foreign Inward Remittance Advice), giving exporters a digital record of the foreign payment received.
For eligible exporters, Skydo also supports eBRC generation by linking the Directorate General of Foreign Trade (DGFT) account, bulk-uploading shipping bills and matching IRMs with the relevant export records. This reduces the manual work involved in reconciling export payments with shipping bills.
Skydo also provides EDPMS closure assistance, helping exporters manage the documentation associated with export proceeds without relying entirely on manual bank follow-ups.
Payments are settled within 24 hours, with real-time payment tracking so exporters can monitor the status of their transactions. Skydo also offers India-based customer support through multiple channels, thereby giving exporters a local support option when they need help with payment or compliance-related issues.
How is the RoDTEP amount calculated on my shipment?
The RoDTEP amount is calculated using the rate notified for the shipment's exact 8-digit Harmonized System (HS) code, applied to the eligible Free on Board (FOB) value and subject to any applicable per-unit value cap. A shipment with an FOB value of ₹12,50,000 at a 0.5% RoDTEP rate would generate an e-scrip of ₹6,250.
What is the difference between the RoDTEP scheme and duty drawback?
Who is required to file the RoDTEP Annual Return (ARR) and by when?
What does the RoDTEP claim rate actually mean in practice?
Can RoDTEP e-scrips be transferred or sold?
Is RoDTEP available for SEZ and EOU exporters?
What happens if I forget to declare RoDTEP on the shipping bill?
Are there any taxes that RoDTEP does not cover?
What is the current status of the RoDTEP scheme in 2026?
