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What is the RoDTEP scheme? Know benefits, rates, eligibility, and features

The RoDTEP scheme aims to offset non-refundable taxes and duties embedded in exported goods. Learn more about its rates, benefits, and process in the blog.

India’s RoDTEP scheme is designed to refund previously un-refunded duties and taxes on export products. Replacing the earlier MEIS scheme, this initiative aims to enhance global competitiveness by neutralizing costs like fuel duties and local levies. Understanding the RoDTEP framework is essential for leveraging its benefits effectively.

This blog offers a detailed guide to the RoDTEP scheme for exporters, outlining its specific features, scheme benefits, eligibility requirements, application process on ICEGATE, current rates, and recent updates.

What is the Remission of Duties or Taxes on Export Products scheme (RoDTEP)?

Remission of Duties or Taxes on Export Products, or RoDTEP, was initiated in 2021 with the primary aim to offset the taxes and duties incurred on exported goods that wouldn’t otherwise be credited, reimbursed, or refunded in any way and are integrated into the exported goods.

Under this scheme, a refund is provided for all concealed central, state, and local duties, taxes, and levies associated with the goods exported which haven’t been reimbursed through any existing program. This includes not only the exporter’s direct expenses but also the accumulated indirect taxes on goods incurred in earlier stages.

Need for RoDTEP scheme

The RoDTEP scheme aims to provide refunds for the following currently unreimbursed elements:

● Duties, taxes, and levies imposed at the central, state, and local levels on the exported product. This includes the cumulative indirect taxes incurred in prior stages related to the production of the exported product.

● Indirect duties, taxes, and levies relevant to the distribution of the exported product. It’s important to note that this scheme does not apply to duties and taxes that have already been exempted, remitted, or credited.

Features and benefits of RoDTEP scheme

The RoDTEP export scheme incorporates several key features designed to streamline the refund process and benefit exporters:

● WTO compliance:

It follows WTO rules by refunding only actual indirect taxes, not giving export subsidies.

● Refund of embedded taxes:

It specifically targets duties and taxes that are currently not refunded through other mechanisms like GST or Duty Drawback. This includes Mandi tax, VAT/Excise on fuel, electricity duty, etc.

● Automated credit system:

The entire process operates digitally through the ICEGATE portal. Refunds are issued as transferable electronic scrips (e-scrips) managed within an electronic credit ledger.

● Wide sectoral coverage:

The scheme aims to cover all export sectors, although implementation has been phased. It includes major contributors like engineering, textiles, chemicals, pharmaceuticals, agriculture, marine products, gems and jewelry, automobiles, and plastics.

● Transferable duty credits:

The e-scrips generated under the scheme are transferable. Exporters can use these scripts to pay Basic Customs Duty (BCD) on their imports or transfer them electronically to other importers.

● Rate determination:

Rebates are typically granted as a percentage of the Freight on Board (FOB) value of the exported goods. However, for certain items, rates may be subject to a value cap per unit, or a fixed rebate amount per unit might be specified.¹

Eligibility criteria of the RoDTEP scheme

The eligibility criteria of the scheme is as follows:

● All goods exporters — both merchant and manufacturer exporters — are eligible for RoDTEP benefits, provided the goods originate in India.

● Currently, only GST and basic customs duties on imported inputs used in manufacturing export products are exempted or refunded.

● There is no specific minimum revenue requirement for eligibility under the RoDTEP. However, goods that are intended for re-export are not eligible for this program.

● Special Economic Zone Units and Export-Oriented Units are also entitled to claim the benefits offered by this scheme.

● The RoDTEP scheme also applies to products exported through courier services using e-commerce platforms.²

Ineligible products and categories under RoDTEP scheme

Some of the categories that are not eligible for rebates under the RoDTEP scheme are:

● Exports of goods that were originally imported for export purposes.

● Exports involving trans-shipments refer to goods originating in a third country but rerouted through India.

● Exported products are subject to a minimum export price or export duty.

● Products restricted or prohibited for export.

● Deemed exports.

● Supplies of products made by units in the Domestic Tariff Area (DTA) to Special Economic Zone (SEZ) or Free Trade and Warehousing Zone (FTWZ) units.

● Products manufactured in Export-Oriented Units (EOUs) under the Electronic Hardware Technology Park (EHTP) and Bio-Technology Park (BTP).

● Products made partially or entirely within a warehouse, such as Manufacture and Other Operations in Warehouse (MOOWR).

● Goods manufactured or exported to fulfil export obligations under advance authorizations, Duty-Free Import Authorizations (DFIA), or Special Advance Authorizations issued within a duty exemption scheme.

● Goods manufactured or exported by units licensed as 100% Export Oriented Units (EOUs).

● Goods manufactured or exported by units located in Free Trade Zones (FTZ), Export Processing Zones (EPZ), or Special Economic Zones (SEZ).

● Exports for which electronic documentation in ICEGATE EDI has not been generated or exports originating from non-EDI ports.

● Second-hand goods, which are goods put into use after manufacturing.³

Documents required for RoDTEP scheme

To successfully claim benefits under the RoDTEP scheme, exporters must provide documents including:

● Shipping bills: Submit all relevant shipping bills with the RoDTEP claim declaration, as these are essential for processing benefits.

● Export invoice: Include details like product name, description, rate, and FOB (Free On Board) value.

● Packing list: Include the product description and quantity; customs will use this to verify the shipment contents.

● Bank realization certificate: Use this as proof that you’ve received payment from the overseas buyer.

● Bill of lading / airway bill: Provide the appropriate document — bill of lading for sea freight or airway bill for air freight — to confirm goods were dispatched.

● Electronic data interchange (EDI) registration: Make sure you’re registered on ICEGATE to enable digital communication with customs.

● Self-declaration form: Submit this to confirm that you meet the RoDTEP guidelines and eligibility.

● GST returns (if applicable): Share these if required to show compliance with GST rules related to your exports.

● Letter of undertaking (if applicable): Provide this if you’re exporting under GST without paying IGST.⁴

Process for applying for RoDTEP scheme

Exporters can follow these steps to apply for the RoDTEP scheme:

Declaration in shipping bill:

The exporter must make a mandatory declaration in the electronic shipping bill filed for exports, indicating their intention to claim RoDTEP benefits for the specific export items. This usually involves selecting ‘RoDTEP’ for each eligible item.

ICEGATE registration:

Exporters must be registered on the ICEGATE portal with a valid Class 3 Digital Signature Certificate (DSC).

EGM filing:

The Export General Manifest (EGM) must be filed correctly by the shipping line or airline.

Claim processing:

Once the EGM is filed, the Customs system processes the shipping bill details based on the exporter’s declaration.

Scroll generation:

After processing, a scroll containing details of admissible shipping bills and the corresponding RoDTEP benefit amount is generated and made available in the exporter’s ICEGATE account.

Credit ledger account creation:

The exporter needs to create a ‘RoDTEP Credit Ledger Account’ within their ICEGATE login. This is a one-time setup.

Scrip generation:

Upon logging into the ICEGATE portal, the exporter can access their RoDTEP Credit Ledger, select the relevant shipping bills from the generated scroll, and generate the RoDTEP e-scrip.⁵

Procedure to issue duty credit for exported items under RoDTEP scheme⁶

The issuance of duty credit under the RoDTEP scheme involves the following procedure:

● Filing of shipping bills: Exporters must file shipping bills with the necessary RoDTEP declaration.

● Customs verification: Customs authorities verify the claims and process the shipping bills accordingly.

● Generation of scrolls: Post-verification, scrolls containing details of eligible RoDTEP benefits are generated.

● Credit Ledger update: The duty credits are then updated in the exporter’s ledger on the ICEGATE portal.

● Utilization of credits: Exporters can use these credits to offset basic customs duty or transfer them to other entities.

Rates under RoDTEP scheme

RoDTEP scheme rates are notified by the government and vary by product. They are officially listed in Appendix 4R (for DTA exports) of the Foreign Trade Policy Procedures.

Rates are generally a percentage of the FOB value but often include value caps per unit or may be fixed amounts per unit; exporters must check the applicable appendix for specifics. As rates are periodically reviewed and updated (e.g., revised rates took effect October 10, 2024), it is crucial to consult the official source for the most current information. Exporters can find the applicable appendices, rates, and the RODTEP scheme latest notification on the Directorate General of Foreign Trade (DGFT) portal.⁷

RoDTEP scheme vs MEIS scheme

RoDTEP scheme

MEIS scheme

This scheme allows the refund of only those duties and taxes that are not currently reimbursed by any other scheme.

This scheme is no longer implemented and has been replaced by RoDTEP. It used to facilitate incentives to the exporters in the case of infrastructural and any cost inefficiency.

It is compliant with WTO norms.

It is non-compliant with WTO norms.

This scheme issues transferable duty credit or electronic scrips maintained via an electronic ledger.

This scheme issues physical transferable scrips.

Latest Notifications around RoDTEP Scheme

The following is an overview of some key steps involved in international shipping:

● March 2025 (Notification No. 66/2024-25):

○ Clarified final RoDTEP eligibility for AA/EOU/SEZ exports only up to February 5, 2025.

○ Confirmed AA/EOU/SEZ exports ineligible for RoDTEP February 6, 2025 onwards.

● March 2025 (Public Notice No. 51/2024-25):

RoDTEP Return (for FY 2023-24) from March 31, 2025, to June 30, 2025 (grace period until Sep 30, 2025).¹⁰

● October 2024 (Public Notice No. 27/2024-25):

Introduced mandatory Annual RoDTEP Return (ARR) filing for claims exceeding ₹1 crore annually, due by March 31 of the following year.¹¹

● September 2024 (Notification No. 32/2024-25):

○ Extended RoDTEP for DTA unit exports until Sep 30, 2025.

○ Extended RoDTEP for AA/EOU/SEZ exports only until Dec 31, 2024 (later updated).

○ Introduced revised RoDTEP rates (Appendix 4R & 4RE) effective Oct 10, 2024.¹²

● September 2024 (CBIC Circular 15/2024 & Notif. 60/2024-Customs (NT)):

Enabled processing of RoDTEP benefits for exports via courier mode using the ICES system.¹³

● Obtain proof of delivery and verify order completion.⁴

● March 2024 (Notification No. 70/2023):

RoDTEP benefits initially extended to Advance Authorization holders & EOUs (from March 11, 2024); SEZ inclusion planned. Rates revised for 25 HS codes.¹⁴

Amazon Global Selling: Easy e-commerce exports and hassle-free shipping

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Guide to export with Amazon

Frequently Asked Questions

1. Who can claim the RoDTEP scheme?

From manufactures, MSMEs to merchant exporters, all sectors can avail the benefits of this scheme. There is no minimum export or turnover criteria for availing this scheme. However, all exported products should be Indian origin, meaning Made in India. E-commerce export products are also included in this scheme.

2. When did RoDTEP scheme start?

This scheme came into effect in January 2021 replacing the old MEIS scheme.

3. Which industries are covered under the RoDTEP scheme?

Sectors with a strong focus on generating employment, such as marine, agriculture, leather, gems and jewelry, and textile industry, are included in the RoDTEP scheme. Additionally, sectors like automobiles, plastics, electrical/electronics, machinery, and others receive support from the RoDTEP scheme.

Published on December 8, 2021.
updated on June 18, 2025.

Sources:
1. https://www.businessgo.hsbc.com/en/article/rodtep-scheme-benefits-and-requirements-for-indian-exporters
2. https://www.businessgo.hsbc.com/en/article/rodtep-scheme-benefits-and-requirements-for-indian-exporters
3. https://www.indiantradeportal.in/vs.jsp?lang=0&id=0,55,2322.
4. https://www.skydo.com/blog/rodtep-scheme-rates-notifications-and-benefits
5. https://taxguru.in/dgft/step-step-process-rodtep-scheme.html
6. https://www.dgft.gov.in/CP/?opt=RODTEPARR
7. https://worldtradescanner.com/32-Ntfn-DGFT-30.09.2024.htm
8. https://www.dgftguru.com/meis-scheme-vs-rodtep-scheme/#:~:text=According%20to%20the%20WTO%20regulations,comes%20under%20the%20HS%20codes.
9. https://chemexcil.in/circulars/viewcirculars/6395/742bea0ac6b209af728eaede5bf3a06b.html#:~:text=66/2024%2D25%20dated%2020th,has%20now%20been%20officially%20notified.
10. https://files.capexil.org/2025/03/PN-51-Eng.pdf
11. https://taxguru.in/dgft/annual-rotdep-return-arr-appendix-4rr.html
12. https://content.dgft.gov.in/Website/Notification+32+Eng.pdf
13. http://pib.gov.in/PressReleasePage.aspx?PRID=2054782
14. https://content.dgft.gov.in/Website/Notification%20No.70%20dated%2008.03.2024%20English.pdf

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