RoDTEP Scheme for Exporters: A Detailed Guide

Exports are the lifeblood of boosting the inflow of foreign currency within the country. Given that, the government of India, through various bodies, often introduces schemes to help out exporters. The RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme is one such scheme.

As its name suggests, it provides some refunds on the taxes you paid for exporting your products. But let’s get in-depth with it and find out what it is and how you can make use of it. 

What is the RoDTEP Scheme?

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme offers a reimbursement mechanism for taxes, duties, and levies that are not refunded through any other system at the central, state, or local level. 

These costs are incurred during the manufacturing and distribution of exported products. Eligible exporters receive e-scrips as refunds, which are transferable and can be used to pay basic customs duty.

Under this scheme, exporters get benefits based on a percentage of the Free on Board (FOB) value or a fixed amount per unit of the exported goods, as given in Appendix 4R/4RE.

RoDTEP was introduced by the Department of Commerce and is managed by the Department of Revenue. To handle any unresolved issues, a RoDTEP Policy Committee (RPC), led by the Director General of Foreign Trade (DGFT), has been set up.

The scheme has been in effect since January 1, 2021, supporting Indian exporters by reducing their cost burden. It was earlier known as MEIS (Merchandise Exports from India Scheme).

What Is Refunded Under The RoDETP Scheme?

The RoDTEP scheme refunds various central, state, and local taxes and duties that are not reimbursed under other duty remission programs. This ensures exporters are not burdened with hidden costs, making Indian exports more competitive.

Here’s what RoDTEP covers:

• Inbound Transport Costs
• Outbound Transport Costs
• Electricity Duty
• Stamp Duty
• Fuel for Captive Power
• Embedded GST
• Other Taxes
• Other Taxes on Inputs
• Farm Sector Taxes
• Embedded GST on Farm Inputs

Since RoDTEP rates are fixed for each product category, the refund amount varies based on the notified percentage of FOB value or a fixed per-unit cap. 

To check specific refund rates, refer to these government notifications: RoDTEP Notifications.

Key Benefits for RoDTEP

The RoDTEP scheme does a lot for exporters, especially helping them compete in the global market. Here’s how it can help you:

• Reimbursement of Unrefunded Taxes: Many central, state, and local taxes aren’t refunded under other schemes. RoDTEP steps in to cover these costs, reducing the overall expense of exporting goods

• Automated and Transparent Processing: No more complicated paperwork. Everything runs through ICEGATE, making the process smooth, efficient, and hassle-free. The refund will be provided as transferable electronic scrips, with duty credits managed and tracked via an electronic ledger

• Flexible Credit Utilization: Exporters can generate duty credit scrips, which can either be used to offset import duties or transferred to other IEC holders, offering greater financial flexibility

• Encourages Export Growth: By reducing costs, RoDTEP makes Indian products more competitive in global markets, helping businesses expand and increase their profits

• Wide Industry Coverage: The scheme applies to a broad range of exported goods, ensuring that multiple industries benefit from tax neutralization

Do you want these benefits? Of course, you do. So, let’s find out if you can get these. 

Eligibility Criteria for Accessing the RoDTEP Scheme

It’s important to understand who can benefit from it. Here’s what you need to know:

• All Sectors Are Covered: The scheme applies to various sectors. It is classified into two categories:  4R (for exporters in Domestic Tariff Area(DTA) ) and 4RE (AA, SEZ, EOU)

• Both Manufacturer and Merchant Exporters Can Apply: Whether you're producing the goods yourself or trading them, you're eligible to claim RoDTEP benefits

• No Turnover Threshold: Unlike some other export incentive schemes, RoDTEP doesn’t require a minimum turnover to qualify

• Country of Origin Must Be India: The exported products must be of Indian origin—re-exported goods don’t qualify

• E-Commerce Exports Are Covered: If you’re exporting goods via courier or e-commerce platforms, you can still claim RoDTEP benefits

Additional Rules You Should Know

• Declare Intent While Filing Shipping Bills: If you want to claim RoDTEP, you must indicate it when filing your shipping bill. Missing this step means losing out on benefits

• Only Notified Goods Are Covered: The scheme applies only to products listed under the notified ITCHS codes, which are updated periodically. Always check if your exports qualify

• Processed Through ICEGATE: You must be registered on ICEGATE and create a RoDTEP credit ledger account to manage your claims

• No Changes After EGM Filing: Once the Export General Manifest (EGM) is filed, your claims can’t be modified. Ensure all details are correctly declared upfront

By following these guidelines, you can maximize your benefits under the RoDTEP Scheme and ensure a smooth claims process.

Claim Processing, Utilization & Documentation for RoDTEP

Applying for the RoDTEP scheme might seem complex, but once you know the steps, it’s a straightforward process. 

Here’s how you can claim, track, and utilize your RoDTEP benefits smoothly.

Step 1: Claiming RoDTEP in the Shipping Bill

To avail of RoDTEP benefits, exporters must declare their claim while filing the Shipping Bill. Without this declaration, the benefit cannot be claimed later.

Step 2: Claim Processing

Once the Export General Manifest (EGM) is filed, Customs processes the claim. A scroll with the admissible amount for each Shipping Bill is generated and made available in the exporter’s ICEGATE account under the e-Scrip module, which facilitates digital access to incentive benefits.

Step 3: Generating your RoDTEP scrips

The e-Scrip module on ICEGATE allows exporters to generate RoDTEP e-Scrips digitally. Follow these steps to claim and generate your RoDTEP e-Scrips.

1. Accessing the e-Scrip Module

1. Login to ICEGATE (https://www.icegate.gov.in/) using your IEC credentials
2. Navigate to the Dashboard and select “e-Scrip – Credit Ledger” 

3. Click on “e-Scrip – Ledger Management” to access scheme details

2. Creating an e-Scrip Account

1. If you haven't created an e-Scrip account, click on “Add New Account” 

2. Select “RoDTEP” from the dropdown list and click Submit
3. Once created, your account details will be displayed in a grid view

3. Generating an e-Scrip

1. From the Schemes page, select “Scrip Generation”

2. Choose the Shipping Bills for which you want to generate the e-Scrip
3. Click Generate to create a unique e-Scrip number, which will be added to your credit ledger 

4. Viewing e-Scrip Details

1. Go to the Schemes page and select “Scrip Details” 

2. Filter e-Scrips using status options like:
   • Active (Usable e-Scrips)
   • Utilized (Already used e-Scrips)
   • Transferred (E-Scrips sent to another IEC holder)
3. Click on “View Scrolls” to see details of Shipping Bills linked to an e-Scrip

Step 4: Using your RoDTEP scrips

Your RoDTEP scrips can be used for import duty payment or transferred to another IEC holder via ICEGATE.

• To use the scrip for import duties, apply it in the Bill of Entry under the scheme code "RD" with the relevant notification number
• To transfer a scrip, the recipient must also have an ICEGATE credit ledger account
• Every transfer requires OTP verification, ensuring secure transactions

By following these steps, you can easily claim, track, and use your RoDTEP benefits without any hassles.

RoDTEP Scheme Rates 

The RoDTEP scheme offers exporters rebates on unrefunded central, state, and local taxes. These rebates are given as a percentage of the Free on Board (FOB) value of exports, with some products also having a maximum cap per unit.

The government updates Appendix 4R and Appendix 4RE, listing eligible products and their rebate rates. As per the latest update (Notification No. 39/2024-25), some new products were added while others have been removed.
For example:

• Chocolate-coated products (Tariff Item 19059051) – 0.90% rebate, no per-unit cap
• Natural Menthol (Tariff Item 29061110) – 1.60% rebate, capped at Rs. 26.5 per kg

To check the latest rates for your exports, refer to the official DGFT documents here.

Staying updated helps you maximize your RoDTEP benefits and reduce export costs.

Avail The Benefits of RoDTEP With Bluno

Ok, so we went through a lot of steps, complex ones at that, and a lot of numbers that are there on the new Annexure. It’s a lot of work, so much so that you might get tired just going through the referenced documents without even reaching the end. 

You don’t want to exhaust yourself with measly paperwork, but you want the benefits that they bring, too. Well, then, you definitely need Bluno. 

Bluno makes sure that you get all the benefits that you are eligible for without having to go through any of the hassles. We also take care of all your compliance-related woes. So, get ahead of your competition and partner up with Bluno now.

Frequently Asked Questions

1. What is the RoDTEP scheme?

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme refunds uncredited central, state, and local taxes on exported goods. This helps exporters lower costs and stay competitive in global markets. It replaces the earlier MEIS (Merchandise Exports from India Scheme) and aims to make Indian exports tax-neutral.

2. How are RoDTEP rates determined?

RoDTEP rates are fixed as a percentage of the Free on Board (FOB) value of exports. Some products also have a maximum per-unit cap to prevent excessive claims. The rates vary by product and are notified in Appendix 4R and Appendix 4RE by DGFT. For example, Natural Menthol (Tariff Item 29061110) has a 1.60% rebate, capped at Rs. 26.5 per kg.

3. Where can I find the latest RoDTEP rates?

The government periodically updates RoDTEP rates through official DGFT notifications. You can check the latest rates on the DGFT site.

4. Are all products eligible for RoDTEP?

No, only notified tariff items (ITCHS codes) qualify for RoDTEP.

5. How do I claim RoDTEP benefits?

To claim RoDTEP, you must:

1. Declare your intent in the Shipping Bill at the time of export by selecting RODTEPY
2. Once the Export General Manifest (EGM) is filed, your claim will be processed by Customs and ICEGATE
3. After approval, you can generate RoDTEP scrips from your ICEGATE credit ledger account and use them for import duty payments or transfers

If you forget to claim RoDTEP in the Shipping Bill, you cannot claim it later.

6. Can RoDTEP scrips be transferred?

Yes. RoDTEP scrips can be sold or transferred to other IEC holders through ICEGATE. However, the recipient must have a valid RoDTEP credit ledger account. The transfer process requires OTP verification for security.

7. How are RoDTEP scrips utilized?

You can use RoDTEP scrips to pay customs duties on imports. To apply them:

• Mention the scrip details in the Bill of Entry under Scheme Code “RD” with the relevant notification number
• If you don’t need the scrip, you can sell or transfer it to another IEC holder through ICEGATE

9. Can RoDTEP be claimed along with other schemes?

You can claim RoDTEP alongside Drawback as long as it covers different cost components.

10. How often are RoDTEP rates updated?

The DGFT and CBIC review and update RoDTEP rates periodically based on industry feedback, export trends, and tax changes. New notifications are issued as needed to revise Appendix 4R and 4RE.