RoDTEP Scheme Explained: Eligibility, Rates, And How To Claim Your Export Refund

RoDTEP Scheme Explained: Eligibility, Rates, And How To Claim Your Export Refund

 

That scheme is RoDTEP — Remission of Duties and Taxes on Exported Products. It replaced the earlier MEIS in 2021, and the key difference is this: MEIS gave a flat incentive that the WTO eventually flagged as a prohibited subsidy. RoDTEP is structured as a remission — a refund of actual taxes embedded in the export supply chain that were never claimed back through any other mechanism. That distinction is what makes it WTO-compliant and, for India's export sector, more durable as a long-term policy.

If you export goods from India and you are not actively claiming RoDTEP on every eligible shipment, you are leaving money on the table. This guide explains the full picture — what qualifies, what the current rates look like, how the ICEGATE claim process works, and where exporters most commonly go wrong.

 

What RoDTEP Actually Covers

The full form — Remission of Duties and Taxes on Exported Products — tells you exactly what the scheme does. When a manufacturer or exporter produces goods for export, their costs include a stack of taxes that are not recoverable through GST refunds or duty drawback: VAT on fuel, mandi taxes, electricity duties, stamp duties, embedded levies paid by input suppliers. These taxes sit in the cost of the product.

The concept behind RoDTEP is that exports should be zero-rated — meaning no Indian tax should travel with the product into global markets. The scheme refunds these otherwise unrecoverable taxes at product-specific rates, expressed as a percentage of the Free on Board (FOB) export value. The refund comes in the form of a digital credit — an e-scrip — usable to pay Basic Customs Duty on eligible imports, or transferable to another registered exporter.

It is notified under the Foreign Trade Policy 2023 and administered by the DGFT (Directorate General of Foreign Trade), with the actual processing and scrip issuance handled through ICEGATE — the Indian Customs Electronic Gateway.

 

Why MEIS Went Away and RoDTEP Came In

The Merchandise Exports from India Scheme (MEIS) gave exporters a flat percentage incentive calculated on their FOB value. Simple enough — but the WTO rules treat incentives not tied to actual duty/tax remission as prohibited export subsidies. India faced a formal dispute at the WTO on this basis.

RoDTEP is different by design. Every rate under the scheme is supposedly tied to the actual embedded tax cost of that product category — not a general incentive. This makes it WTO-compliant in principle, and it is the reason the government has extended it as a long-term mechanism rather than a temporary patch.

The practical consequence: the rates under RoDTEP are generally lower than what MEIS offered, but the scheme is more defensible internationally and is intended to continue. Exporters who treated MEIS and RoDTEP as interchangeable are likely underestimating the procedural differences.

 

Who Can Claim RoDTEP — and Who Cannot

Eligible exporters

Any exporter of goods covered under the RoDTEP schedule of notified items can claim, provided:

• The exported product falls under a notified HS code in Appendix 4R (for DTA units) or Appendix 4RE (for AA holders, EOUs, and SEZ units)
• The RoDTEP declaration is made at the time of filing the shipping bill — not retrospectively
• The Export General Manifest (EGM) has been filed by the carrier
• The exporter is registered on ICEGATE with a valid IEC (Importer Exporter Code) and DSC

 

There is no minimum turnover requirement. A small manufacturer exporting ₹10 lakh worth of goods in a year can claim RoDTEP just as a large enterprise can. The scheme is open to DTA units, Advance Authorisation holders, EOUs, and SEZ units — though the rates and applicable schedules differ slightly between these categories.

 

Who cannot claim

• Exporters who did not select the RoDTEP option in the shipping bill — the declaration is mandatory at the time of filing and cannot be added later
• Products not listed in the notified schedule under Appendix 4R or 4RE
• Exports under trans-shipment arrangements
• Certain specifically excluded categories as notified by DGFT from time to time

 

Current RoDTEP Rates

The rates are product-specific, expressed as a percentage of the FOB value of exports, and are subject to a per-unit cap in some cases. They were revised with effect from 10 October 2024 following recommendations by the RoDTEP Committee.

 

Category	Current Rate Range (  of FOB value)
General range across notified products	0.3  to 3.9
Previous range (pre-October 2024)	0.5  to 4.3
Basis	Per Appendix 4R (DTA units) and Appendix 4RE (AA/EOU/SEZ units)
Per-unit cap	Applies to certain product categories — check HS-code-specific notification
Source	DGFT portal: dgft.gov.in → Regulations → RoDTEP

 

The rates were revised downward from the pre-2024 range to keep the total scheme outgo within the approved budgetary framework. The government has explicitly stated that rates may be further revised — upward or downward — depending on the annual budget allocated to the scheme.

Always check the rate applicable to your specific HS code before assuming a standard rate. Some products carry a per-unit cap that limits the actual credit even if the percentage looks attractive.

 

Current Extension Status

As of October 2024, the DGFT notified the following:

• DTA units: scheme extended until 30 September 2025
• AA holders (except deemed exports), EOUs, and SEZ units: extended until 31 December 2024 in the first instance

For exports made between 1 October 2024 and 9 October 2024, the pre-revision rates under Notification No. 70/2023 (dated 8 March 2024) continue to apply. The new rates apply from 10 October 2024 onwards.

Confirm current extension status and applicable rates at dgft.gov.in before filing shipping bills. Scheme coverage and rates are subject to revision.

 

How the RoDTEP Claim Process Works

The entire process is digital — no paper applications, no physical submissions. It runs through ICEGATE from the moment you file the shipping bill to the point where you have a usable e-scrip. Here is each step.

 

Step 1: Declare RoDTEP in the shipping bill

When filing the electronic shipping bill through ICEGATE's EDI system, the exporter must declare the intention to claim RoDTEP for each eligible item. This declaration is item-specific — if a shipment contains multiple product lines, each must be individually declared. Do this for every eligible shipment, every time. There is no way to go back and add it.

 

Step 2: File the Export General Manifest (EGM)

After the goods physically leave India, the carrier (shipping line or airline) files the EGM. This triggers the Customs processing side. Until the EGM is filed, the RoDTEP claim remains in a pending state.

 

Step 3: Customs processes the claim and generates the scroll

Once the EGM is filed and the shipping bill is processed, Customs verifies the declared details against the HS code and the applicable rate in the notified schedule. A scroll is generated in the exporter's ICEGATE account listing all the eligible shipping bills with the admissible RoDTEP amount for each.

 

Step 4: Create a RoDTEP Credit Ledger Account on ICEGATE

If you haven't already, register on ICEGATE (icegate.gov.in) with your IEC and DSC. Under the Credit Ledger section, create your RoDTEP Credit Ledger Account. This is where your e-scrips are held.

 

Step 5: Generate the e-scrip

Log into ICEGATE, go to the e-Scrip facility, select the relevant shipping bills from the scroll, and generate the e-scrip. The scrip reflects the total admissible RoDTEP amount for those bills. Each scrip has a validity period — check the expiry date in your ICEGATE ledger.

 

Step 6: Use or transfer the e-scrip

The RoDTEP e-scrip can be used to pay Basic Customs Duty (BCD) on eligible imports — it works as an offset against your import duty liability. Alternatively, it is transferable to another eligible ICEGATE-registered entity. If you are a pure exporter with minimal imports, the transfer option is how many exporters monetise their RoDTEP credits.

 

Annual RoDTEP Return (ARR) — Don't Overlook This

If your total RoDTEP claim across all shipping bills in a financial year exceeds ₹1 crore, you are required to file an Annual RoDTEP Return (ARR) by the specified deadline. Missing this filing results in denial of RoDTEP benefits — not a penalty, an outright denial of credits already in your scroll.

The ARR requirement catches many larger exporters off guard because the RoDTEP claim process feels complete once the e-scrip is generated. The ARR is a separate compliance layer that sits on top of the transaction-level process. Track your cumulative RoDTEP claim amount through the year and build the ARR deadline into your compliance calendar.

Check the current ARR deadline with your CA or on the DGFT portal. The deadline is set by notification and is subject to change.

 

RoDTEP and Duty Drawback — Can You Claim Both?

Yes, in most cases — and this matters because many exporters assume they are mutually exclusive.

Duty Drawback under the Customs Act refunds customs duties on imported inputs used in the manufacture of exported goods. RoDTEP covers a different set of embedded costs — domestic taxes and levies like VAT on fuel, electricity duty, mandi tax — that Drawback does not touch.

Since they address different embedded costs, an exporter can claim both Drawback and RoDTEP on the same shipment, provided the specific item is eligible under both schemes. What you cannot do is claim the same tax twice through overlapping schemes — RoDTEP will not cover anything already reimbursed through Drawback or any other mechanism.

Similarly, RoDTEP and GST refunds operate independently. GST input tax credit and RoDTEP address entirely different cost streams.

 

The Mistakes That Cost Exporters Most

 

Not declaring RoDTEP on the shipping bill

This is it — the number one issue. Every shipping bill without a RoDTEP declaration is permanently lost. In operations with high export volumes, a missing declaration on even a fraction of shipments adds up to a significant unclaimed amount by year-end. Make the declaration a mandatory checklist item, not an afterthought.

 

Wrong HS code on the shipping bill

RoDTEP rates are tied to specific HS codes. An incorrect HS code — even a minor mismatch — either results in rejection or in the wrong rate being applied. Export documentation teams should verify HS codes against the current Appendix 4R before filing, not after a rejection notice arrives from Customs.

 

Not registering on ICEGATE or not creating the Credit Ledger Account

Some exporters complete the shipping bill declaration but never set up their ICEGATE account or Credit Ledger. The scroll sits there, unactioned, until the scrips expire. The refund effectively goes unclaimed even though it was earned.

 

Missing the ARR filing for claims above ₹1 crore

As described above — this is a compliance step that is separate from scrip generation and carries severe consequences. An exporter whose cumulative annual claim crosses ₹1 crore and misses the ARR deadline loses the benefits outright.

 

Letting e-scrips expire

Each RoDTEP e-scrip has an expiry date. Scrips that are not used against BCD and not transferred before expiry simply lapse. Track your ICEGATE ledger. If you have more scrip value than you can use for imports, identify a buyer or transfer recipient before the expiry window closes.

 

What This Looks Like for a Real Exporter

A mid-sized engineering goods manufacturer from Pune — ₹8 crore in exports annually to buyers in Germany and the UAE. Their products fall under an HS code with a RoDTEP rate of 1.2  of FOB value.

On ₹8 crore of exports, that is ₹9.6 lakh per year in RoDTEP credits — generated automatically through the ICEGATE scroll process, provided the declaration is made on every shipping bill. The manufacturer uses some of it to offset customs duty on imported steel and transfers the balance to a related trading company that imports more regularly.

Before they had a proper system in place — about two years before we engaged with them — roughly 30  of their shipping bills were going out without the RoDTEP declaration. On a ₹6 crore export base at the time, that was roughly ₹2.16 lakh in annual credits permanently lost. Not from fraud, not from a dispute. Just from a missed checkbox.

The fix was a two-line addition to their pre-shipment checklist and a quarterly ICEGATE ledger review. Total time investment: negligible. The savings were immediate.

 

RoDTEP Compliance Checklist for Exporters

1. Register on ICEGATE (icegate.gov.in) with a valid IEC and DSC if not already done
2. Create a RoDTEP Credit Ledger Account under the Credit Ledger section on ICEGATE
3. For every export shipment, verify HS code against Appendix 4R or 4RE and confirm the product is in the notified schedule
4. Declare RoDTEP intent on every eligible shipping bill at the time of filing — this step cannot be done retroactively
5. After EGM filing by the carrier, monitor your ICEGATE account for the Customs-generated scroll
6. Generate e-scrips promptly and track expiry dates in your Credit Ledger
7. Use e-scrips against BCD on eligible imports or transfer them before expiry
8. Track your cumulative annual RoDTEP claim — if it crosses ₹1 crore, file the Annual RoDTEP Return (ARR) by the notified deadline
9. Check DGFT portal (dgft.gov.in) for rate revisions and scheme extensions at least quarterly

 

Are Your RoDTEP Credits Being Claimed Correctly?

CA Dhiraj Ostwal   Associates | Pune

RoDTEP is one of those schemes where the benefit is real but the process is detail-dependent. A missed declaration, a wrong HS code, an uncreated ICEGATE ledger — any one of these quietly eliminates credits that should have been yours. If you are not sure whether your export documentation process is capturing every eligible shipping bill, or if you have unclaimed scrolls sitting in your ICEGATE account, that is worth looking at.

We work with manufacturing exporters, trading firms, and MSME exporters on:

 

• RoDTEP eligibility review and HS code verification
• ICEGATE account setup and Credit Ledger activation
• Shipping bill declaration compliance audit
• ARR (Annual RoDTEP Return) filing
• E-scrip utilisation planning and transfer assistance
• Export incentive review — RoDTEP, Duty Drawback, EPCG, Advance Authorisation

 

FAQs

 

What is the full form of RoDTEP?

Remission of Duties and Taxes on Exported Products. It is administered by the DGFT under the Foreign Trade Policy 2023 and replaces the earlier MEIS.

 

What are the current RoDTEP rates?

As of October 2024, the revised rates range from 0.3  to 3.9  of the FOB export value, down from the earlier range of 0.5  to 4.3 . Rates are product-specific, tied to HS codes, and listed in Appendix 4R (DTA units) and Appendix 4RE (AA/EOU/SEZ units) on the DGFT portal. Some products also have a per-unit value cap.

 

Can I claim RoDTEP if I also claim Duty Drawback?

Generally yes. Drawback covers customs duties on imported inputs; RoDTEP covers domestic taxes like VAT on fuel, electricity duty, and mandi tax. Since they address different cost components, both can be claimed on the same shipment — as long as there is no double-claiming of the same underlying tax.

 

What if I forgot to declare RoDTEP on a shipping bill?

The benefit for that shipping bill is permanently lost. The declaration must be made at the time of filing the shipping bill — it cannot be added after the fact. This is the most common and most avoidable loss under the scheme.

 

Is RoDTEP available to SEZ and EOU exporters?

Yes, though the rates and applicable schedule differ. SEZ units and EOUs use Appendix 4RE rather than Appendix 4R. The scheme was extended for AA holders, EOUs, and SEZ units until 31 December 2024 in the latest notification. Confirm current extension status on the DGFT portal.

 

What is the RoDTEP e-scrip and how do I use it?

When your RoDTEP claim is approved by Customs, the refund is issued as a digital credit called an e-scrip, stored in your ICEGATE Credit Ledger. You can use it to pay Basic Customs Duty on eligible imports, or transfer it to another registered exporter on ICEGATE. It is not a cash refund.

 

What is the ARR and do I need to file it?

The Annual RoDTEP Return (ARR) is a compliance filing required if your total RoDTEP claim across all shipping bills in a financial year exceeds ₹1 crore. Missing the ARR deadline results in denial of RoDTEP benefits. The deadline is notified by DGFT — check the current date on their portal or with your CA.