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What is the RoDTEP scheme?: A Complete Guide (2026 Updates)
RoDTEP scheme aims to refund embedded taxes and duties on exported goods. Explore rates, eligibility, AA/SEZ/EOU updates, process, and how to claim benefits.
July 31, 2026 | 20 min read
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For years, hidden taxes and levies reduced exporter margins, deterring Indian exporters from competing in the global market. The earlier Merchandise Exports from India Scheme (MEIS) offered some relief. However, it was limited by dependence on subsidies, budget constraints, and administrative delays. The Remission of Duties and Taxes on Exported Products, or the RoDTEP scheme, was introduced in 2021 to address this issue. It reimburses embedded costs that exporters could not recover elsewhere and aligns with WTO trade regulations.
For Indian exporters and e-commerce sellers, understanding how the scheme works is important for compliance and claiming the right benefits. This blog covers everything about the scheme, including RoDTEP's full form, process, required documents, eligibility, and how to apply.
For Indian exporters and e-commerce sellers, understanding how the scheme works is important for compliance and claiming the right benefits. This blog covers everything about the scheme, including RoDTEP's full form, process, required documents, eligibility, and how to apply.
Key takeaways:
● RoDTEP refunds hidden central, state, and local taxes on exported goods that GST and Duty Drawback do not cover.
● It replaced MEIS in January 2021 and is fully compliant with WTO trade rules.
● Credits are issued as electronic scrips on ICEGATE and can be used to pay Basic Customs Duty.
● Rates range from 0.3% to 3% of the FOB value, depending on the product category.
● All goods exporters, including MSMEs, merchant exporters, and more, are eligible, provided the goods are of Indian origin.
What is the Remission of Duties or Taxes on Export Products (RoDTEP) scheme?
Remission of Duties and Taxes on Exported Products (RoDTEP) is a WTO-compliant export scheme. It refunds hidden central, state, and local taxes incurred during the production and distribution of exported goods. These include levies on fuel, electricity, mandi taxes, and other embedded costs not covered under any other mechanism.
The RoDTEP scheme covers all sectors under two categories:
The RoDTEP scheme covers all sectors under two categories:
● Appendix 4R: Applies exclusively to Domestic Tariff Area (DTA) exports.
● Appendix 4RE: Covers Special Economic Zones (SEZs), Export Oriented Units (EOUs), and Advance Authorisation (AA) holders.
By removing domestic tax burdens from the cost of exported goods, the scheme helps keep Indian exports price-competitive in global markets. Previously, the value caps and rebate rates were restricted to exactly 50% of their original levels. But the Indian government has now restored full RoDTEP rates and value caps for all eligible exports.1
Need for RoDTEP scheme
The RoDTEP scheme was introduced for two main reasons: to keep exported goods free from domestic tax burdens and to remain compliant with global trade rules.
When the WTO classified MEIS as a prohibited export subsidy in 2019, India officially phased out MEIS. A prohibited export subsidy is a trade benefit that distorts fair trade competition. On January 1, 2021, it was replaced by RoDTEP, bringing India's export incentive framework in line with SCM Agreement norms.
Eligible refunds included in the RoDTEP scheme for exporters are:
When the WTO classified MEIS as a prohibited export subsidy in 2019, India officially phased out MEIS. A prohibited export subsidy is a trade benefit that distorts fair trade competition. On January 1, 2021, it was replaced by RoDTEP, bringing India's export incentive framework in line with SCM Agreement norms.
Eligible refunds included in the RoDTEP scheme for exporters are:
● Fuel-related VAT and excise duty, covering transport, power generation (plants and DG sets), and machinery operation
● Electricity duty is charged on the power purchased for production
● Local levies such as the mandi tax, municipal tax, and property tax
● Stamp duty paid on export documentation
● Non-creditable GST components (CGST, SGST, IGST, Compensation Cess) on items like passenger vehicles, food and beverages, rent-a-cab services, and works contracts.2
Features and benefits of the RoDTEP scheme
The RoDTEP scheme is designed to make the claim and refund process simple for exporters. Key features and benefits include:
● WTO compliant: The scheme follows WTO rules by refunding actual indirect taxes only, without acting as an export subsidy.
● Refund of embedded taxes: It covers duties and taxes left out of other mechanisms like GST or Duty Drawback, including mandi tax, VAT/excise on fuel, electricity duty, and similar levies.
● Automated credit system: The entire process runs online through the Indian Customs Electronic Gateway (ICEGATE) portal. Each RoDTEP scrip is issued as a transferable electronic credit and stored in an electronic credit ledger.3
● Wide sectoral coverage: The scheme spans all export sectors, with phased rollout across engineering, textiles, chemicals, pharmaceuticals, agriculture, marine products, gems and jewellery, automobiles, and plastics.
● Transferable duty credits: Exporters get flexibility through transferable duty credits. A RoDTEP scrip can be used to pay Basic Customs Duty (BCD) on imports or transferred to other importers.
● Rate determination: Rebates are calculated as a percentage of the FOB value of exported goods. Certain items carry a value cap per unit or a fixed rebate per unit instead.4
● Quick verification through digitization: One of the major RoDTEP scheme benefits is faster verification. The fully digital process reduces paperwork, speeds up processing, and makes it easier to track and validate claims.
Eligibility criteria for the RoDTEP scheme
Before applying to claim benefits, check whether or not you meet the set RoDTEP scheme eligibility criteria. Here are the key eligibility parameters:
● Who can apply: All goods exporters, including merchant and manufacturer exporters across all sectors, are eligible. The exported products must have India as the country of origin.
● What is excluded: Products where GST and basic customs duties on imported inputs are already exempted or refunded do not qualify for RoDTEP benefits.
● Requirements for filing: There is no minimum revenue limit to be eligible. However, if your total RoDTEP claim crosses Rs. 1 crore in a year, you must file an Annual RoDTEP Return (ARR). If no 8-digit ITC-HS code crosses ₹50 lakh in claims, submit the ARR only for the code with the highest claim amount.5
● Recent additions: Following the 2025 PIB announcement, RoDTEP for SEZ units, RoDTEP for EOU, and AA holders are now available for export incentives. It took effect on June 1, 2025.6
● E-commerce exports: The RoDTEP scheme also covers products shipped through courier services via e-commerce platforms.
Documents required for RoDTEP scheme
To successfully claim benefits under the RoDTEP scheme, exporters must provide the following documents:
Document
Purpose
Shipping bills
All shipping bills with the RoDTEP claim declaration attached. Filing this declaration at the time of shipping bill submission is mandatory to claim RoDTEP benefits.7
Export invoice
The product name, description, rate, and FOB (Free On Board) value.
Packing list
Product description and quantity for customs verification.
Bank realization certificate
Proof that the overseas buyer has paid you.
Bill of lading / Air waybill
Electronic Data Interchange (EDI) registration
ICEGATE registration to file shipping bills and communicate with customs digitally.
Self-declaration form
Confirms eligibility and compliance with RoDTEP guidelines.
GST returns (if applicable)
GST returns confirming compliance with GST rules on your exports.
Letter of undertaking (if applicable)
Required if you are exporting under GST without paying Integrated Goods and Services Tax (IGST).8
How to claim RoDTEP benefits?
Exporters can claim RoDTEP benefits online through the ICEGATE portal. Below is the complete process:
1. Register and submit declaration: Register on ICEGATE with a Class 3 DSC, a digital certificate to verify your identity for trade filing. Declare your RoDTEP claim in the shipping bill. The shipping line or airline must file the Export General Manifest (EGM) before processing begins.
2. Obtain custom approval: Customs reviews the claim after the EGM is filed. It then generates a scroll listing approved shipping bills and benefit amounts. Track this on your ICEGATE dashboard.
3. Generate your e-scrip: Create a RoDTEP Credit Ledger Account on ICEGATE. Select the approved shipping bills and generate your e-scrip.
4. Use or transfer the e-scrip: Use e-scrips to pay Basic Customs Duty on future imports. You can also transfer them to other importers.9
RoDTEP duty credit issuing process
Here is how RoDTEP duty credits are issued:
● 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 the RoDTEP scheme
The government has restored full rates under the RoDTEP scheme in view of the ongoing geopolitical disruptions. The restoration came after a temporary 50% reduction was imposed in February 2026.10
The RoDTEP rates currently range from 0.3% to 3.0% of the FOB value, depending on the export product category.
For Export Oriented Unit (EOU), Special Economic Zone (SEZ), and Advance Authorization (AA) exports, rates under Schedule 4RE range from 0.30% to 1.80% of the FOB value.11
The scheme covers 10,780 HS codes for DTA exports and 10,795 HS codes for AA, EOU, and SEZ exports. In the latest revision, 142 new tariff lines were added, and 50 were removed to align with the Customs Tariff Act.12
Always refer to the latest notification on the DGFT portal for the most current rates applicable to your product.
The RoDTEP rates currently range from 0.3% to 3.0% of the FOB value, depending on the export product category.
For Export Oriented Unit (EOU), Special Economic Zone (SEZ), and Advance Authorization (AA) exports, rates under Schedule 4RE range from 0.30% to 1.80% of the FOB value.11
The scheme covers 10,780 HS codes for DTA exports and 10,795 HS codes for AA, EOU, and SEZ exports. In the latest revision, 142 new tariff lines were added, and 50 were removed to align with the Customs Tariff Act.12
Always refer to the latest notification on the DGFT portal for the most current rates applicable to your product.
RoDTEP scheme vs MEIS scheme
Here is how the RoDTEP vs MEIS scheme differs:
Key areas
RoDTEP Scheme
MEIS Scheme
Refund coverage
Central, state, and local taxes, including fuel taxes, electricity duty, mandi tax, toll tax, and stamp duty
No coverage for VAT on fuel, mandi tax, or electricity duty13
Scrip type
Electronic, transferable duty credit scrips
Physical, transferable scrips
Ledger/tracking
Fully automated digital system with a computerized ledger
Manual, paper-based system
Scrip usage
Basic customs duty only
Any customs duty payment14
Sector coverage
All industries, including MSMEs, merchant exporters, and e-commerce exporters
HS code-based, narrower scope
Incentive rate
Fixed per unit, subject to ceiling rates
0.5% to 4.3% of FOB value
Latest notifications around RoDTEP scheme
The RoDTEP scheme has seen several key updates since 2025 that exporters should factor into their compliance planning. Below is a summary of recent RoDTEP notifications and updates:
● May 2026: RoDTEP refund rates were revised from May 1, 2026. All exporters, including those under AA, EOU, and SEZ schemes, should check how the new rates affect their shipments.
● November 2025: The ARR filing deadline for FY 2023–24 was extended to March 31, 2026. Exporters filing during the extended period are required to pay a composition fee of ₹15,000.15
● May 2025: RoDTEP benefits were restored for AA, EOU, and SEZ exporters from June 1, 2025.16 Eligible shipments under these schemes can be claimed again.
Impact of RoDTEP on key export sectors
RoDTEP has had a clear impact on India's export competitiveness since its launch in 2021. Here is what the data and research show:
● Dairy, meat, and marine sector: RoDTEP helps exporters recover embedded taxes incurred during production and transportation, reducing overall export costs.
● Textile sector: Even a small rebate can translate into significant savings due to the sector's high export volumes. RoDTEP helps textile exporters improve margins and remain competitive in global markets.
● Aluminium sector: Exporters can recover embedded taxes on raw materials, manufacturing, and logistics. This lowers export costs and supports more competitive pricing in international markets.
● Other export sectors: RoDTEP also helps recover unreimbursed costs such as fuel levies, electricity duty, and mandi tax, reducing the overall tax burden on exports.
Conclusion
The RoDTEP scheme is a tax remission scheme, not an export incentive or subsidy. To claim benefits, exporters must make the required declarations on their shipping bills and maintain accurate documentation.
Registering on ICEGATE and activating the electronic credit ledger can help avoid delays. Since RoDTEP rates and eligibility conditions may change, it is important to stay updated with the latest DGFT notifications.
Registering on ICEGATE and activating the electronic credit ledger can help avoid delays. Since RoDTEP rates and eligibility conditions may change, it is important to stay updated with the latest DGFT notifications.
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Frequently Asked Questions
Who can claim the RoDTEP scheme?
Manufacturers, MSMEs, and merchant exporters can claim benefits under RoDTEP scheme. The exported goods must be of Indian origin and meet the scheme's eligibility requirements.
When did the RoDTEP scheme start?
The scheme started in January 2021. It replaced the earlier MEIS scheme.
Which industries are covered under the RoDTEP scheme?
RoDTEP scheme covers most manufacturing and employment-intensive sectors. These include textiles, agriculture, engineering, automotive, machinery, and several other export-focused industries.
Is RoDTEP available for SEZ and EOU exporters in 2026?
Yes. RoDTEP benefits were restored for SEZ units, EOUs, and Advance Authorization holders from June 1, 2025.
What is the difference between Appendix 4R and Appendix 4RE under RoDTEP?
Appendix 4R applies to exporters operating in the Domestic Tariff Area (DTA). Appendix 4RE applies to exports made by SEZ units, EOUs, and Advance Authorisation holders.
What taxes are covered under RoDTEP that are not refunded under GST?
RoDTEP covers fuel taxes, electricity duty, stamp duty, mandi tax, and certain state-level cesses. These are not refunded through GST or Duty Drawback.
What is the RoDTEP rate range, and how is it calculated on FOB value?
RoDTEP rates generally range from 0.3% to 3% of the FOB value, depending on the product. The applicable rate is linked to the product's HS code and is notified by the government.
Published on December 8, 2021.
Last updated on July 31, 2026.
Sources:
1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2244147®=3&lang=1
2. https://indiantradeportal.in/vs.jsp?lang=0&id=0,55,23222
3. https://icea.org.in/wp-content/uploads/2024/10/FAQ-RoDTEP.pdf
4. https://icea.org.in/wp-content/uploads/2024/10/SCHEME-RoDTEP.pdf
5. https://content.dgft.gov.in/Website/RoDTEP_User_Guide.pdf
6. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2131526®=48&lang=2
7. https://indiantradeportal.in/vs.jsp?lang=0&id=0,55,23222
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9. https://indiantradeportal.in/vs.jsp?lang=0&id=0,55,23222
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11.8 https://content.dgft.gov.in/Changes+to+be+made+in+Appendix+4R+and+Appendix+4RE.pdf
12. https://worldtradescanner.com/15-Ntfn-DGFT-30.04.2026.htm
13. https://economictimes.indiatimes.com/engage/industry/banking/finance/banking/from-key-features-and-eligibility-to-major-differences-between-rodtep-and-meis-heres-all-you-need-to-know-about-the-rodtep-scheme-/et_icicibank_show/96762977.cms
14. https://razorpay.com/blog/meis-rodtep-export-incentives-india/
15. https://fieo.org/uploads/files/file/Arr(2).pdf
16. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131526®=48&lang=2
Last updated on July 31, 2026.
Sources:
1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2244147®=3&lang=1
2. https://indiantradeportal.in/vs.jsp?lang=0&id=0,55,23222
3. https://icea.org.in/wp-content/uploads/2024/10/FAQ-RoDTEP.pdf
4. https://icea.org.in/wp-content/uploads/2024/10/SCHEME-RoDTEP.pdf
5. https://content.dgft.gov.in/Website/RoDTEP_User_Guide.pdf
6. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2131526®=48&lang=2
7. https://indiantradeportal.in/vs.jsp?lang=0&id=0,55,23222
8. https://tutorial.gst.gov.in/userguide/refund/Furnishing_of_Letter_of_Undertaking_for_Export_of_Goods_or_Services.htm
9. https://indiantradeportal.in/vs.jsp?lang=0&id=0,55,23222
10. https://content.dgft.gov.in/Website/dgftprod/55c4afae-8aac-4c2d-b3a4-221f774594c8/RODTEP%20NOTIFICATION%20NO%2060%20DATED%2023.02.2026-%20ENGLISH_0001.pdf
11.8 https://content.dgft.gov.in/Changes+to+be+made+in+Appendix+4R+and+Appendix+4RE.pdf
12. https://worldtradescanner.com/15-Ntfn-DGFT-30.04.2026.htm
13. https://economictimes.indiatimes.com/engage/industry/banking/finance/banking/from-key-features-and-eligibility-to-major-differences-between-rodtep-and-meis-heres-all-you-need-to-know-about-the-rodtep-scheme-/et_icicibank_show/96762977.cms
14. https://razorpay.com/blog/meis-rodtep-export-incentives-india/
15. https://fieo.org/uploads/files/file/Arr(2).pdf
16. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131526®=48&lang=2
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