What is the RoDTEP Scheme? Benefits for Exporters Explained

India’s export business employs millions and contributes significantly to the country’s economic growth. But from time to time, hidden taxes can erode your profits. To help you save capital and support Indian goods to compete in the international markets, the Ministry of Commerce launched the RoDTEP scheme (Remission of Duties and Taxes on Exported Products). 

In this article, we’ll look at what the RoDTEP Scheme is, its eligibility, process and rates to help you claim RoDTEP benefits without any hassle.

RoDTEP full form is Remission of Duties and Taxes on Exported Products. It was launched on January 1, 2021, by the Indian Ministry of Commerce with an objective to refund central, state, and local taxes that are excluded by other programs to push competition among exporters.

It replaced the WTO-non-compliant MEIS and exporters to offer a more transparent way to reimburse indirect taxes levied on exporters of goods or services. Exporters can use these transferable credits for basic customs duty payments via ICEGATE.

This scheme is directed towards embedded costs like Mandi tax, VAT on inputs, coal cess, and fuel excise to ensure zero-rated exports. All you need to do is check if your sector is listed in DGFT Appendix 4R on their website to qualify for this scheme.

After a US dispute ruled export subsidies illegal, the Indian government launched the RoDTEP scheme in January 2021 to replace the WTO-noncompliant MEIS (Merchandise Exports from India Scheme). RoDTEP export scheme refunds unrebated taxes to enhance global competitiveness and ensures zero-rated exports. 

This is a step taken by the governments to neutralize embedded costs that are not covered by GST refunds. Here, WTO compliance is a priority, and all sectors are promoted and supported uniformly. 

RoDTEP actively supports India’s $1 trillion export goal by 2030, by aiding SMEs and labor-intensive industries.

The RoDTEP scheme is primarily designed for exporters. It refunds unrebated taxes on exports, helping you cut costs and compete in the international markets. RoDTEP benefits also cover transferable e-scrips that lower landed costs for buyers abroad. Some key benefits of the scheme are:

• Tax refunds: You can recover VAT, coal cess, fuel excise, and Mandi tax with RoDTEP. These are not refunded under any other schemes and directly improve your profit margin.
• WTO compliance and stability: It legally replaces MEIS and promises predictable incentives without any trade dispute risks for a sustained market and business growth.
• Transferable electronic scrips: It offers credits that are usable for customs duties or can be sold to others for better cash flow flexibility. This is especially beneficial for SMEs.
• Quick digital processing: With ICEGATE, you can process your claims faster with proper risk-based verification. This helps you reduce paperwork and delays.
• Broad coverage: RoDTEP scheme supports an umbrella of industries like textiles, agriculture, engineering, and e-commerce exports via HS code notifications.
• Boost to the export volume: It helps lower costs that make Indian goods cheaper on the global scale and enhances India’s market share.

Anyone with an active Import Export Code (IEC) from DGFT can claim RoDTEP benefits on eligible exports. This includes manufacturers, merchants, and even small e-commerce sellers shipping notified products.

Since the update of the RoDTEP scheme in June 2025, the scheme has opened the doors for export and business opportunities for DTA units to SEZs and EOUs. The scheme promises no minimum turnover hurdles, and this opens up international markets even for startups via simple ICEGATE registration. Here’s who qualifies and how: 

• IEC registration: You need a mandatory Import Export Code (IEC) from DGFT to qualify for the RoDTEP scheme.
• Notified products: All exports that match HS codes in DGFT schedules automatically qualify for the scheme.
• Declaration compliance: To avail RoDTEP benefits, you need to select the same in your shipping bill to avoid any possibility of double claims with the other schemes.
• SEZ/EOU access: The eligibility criteria were restored in June 2025 under separate Appendix 4RE rates for SEZ and EOU businesses.
• Advance Authorization users: If you hold a valid AA status certificate, you can avail proportionate benefits on net foreign exchange earnings.

The RoDTEP scheme covers unrebated state, central, and local taxes that are missed by other schemes. These include levies such as the Mandi tax and coal cess, so exporters don’t have to bear hidden costs. 

The scheme also includes duties that are not refundable under GST or Duty Drawback. But you need to declare these on your shipping bills and check your HS codes in DGFT schedules to ensure your eligibility. Some key taxes covered include:

• Mandi or market fees: These consist of state agriculture cesses on raw materials and inputs.
• VAT on inputs: The non-creditable value-added taxes before GST rollout. 
• Coal cess and pollution levies: These include environmental taxes on fuel and power that are used in production. 
• Stamp duties: These duties cover registration fees for all export-related documents.
• Excise on fuel: Includes central duties on petrol and diesel.

The RoDTEP claim process is a fully digital process through the ICEGATE portal. You have to start the process with a declaration of intent on the shipping bill to unlock RoDTEP export scheme refunds. 

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After the EGGM filing, customs verifies the exports and generates electronic scrips that are linked to your ledger. You can use these transferable scrips for duty payments or even sell them for quick cash flow. Here’s the step-by-step RoDTEP claim process:

• Declare RoDTEP on shipping bill: You need to first select the RoDTEP code and add the mandatory declaration on the shipping bill.
• File EGM proof: The carrier submits the Export General Manifest to the customs. They process it to create RoDTEP scrolls in your ICEGATE account.
• Register your export business on ICEGATE: You need to use IEC and DSC to create a RoDTEP credit ledger under the credit tab.
• Generate and make use of e-scrips: Next, you need to convert scrolls to e-scrips and debenture them for imports or transfer to others through the portal.
• Track your refunds online: You can then monitor the status of your claim, audit trails, and balances anytime. The platform offers reliable risk management to speed up the approval of claims without manual checks.

The RoDTEP scheme rates depend on your product’s HS code, which is listed in DGFT’s Appendix 4R or 4RE. You can check these rates on the official DGFT website for the latest schedules to calculate the exact funds.

These rates generally apply as a percentage or a fixed amount per unit, like ₹ per Kg, and are capped wherever needed to fit budgetary limits. There are regular, annual updates like the ones recorded in October 2024 and May 2025 to align with the new HS codes and to keep the scheme fair across sectors.

RoDTEP rates are mostly percentage-based. Most of the goods get 0.3% to 4.3% of FOB, while textiles often hit the high ends of the chart with 3 to 4% FOB.

RoDTEP focuses on tax remission rather than direct subsidies, and this is what makes it different from the older schemes laid out by the Ministry of Commerce. It also ensures WTO compliance and targets unrebated levies digitally for all exporters, unlike MEIS or Duty Drawback.

The RoDTEP scheme got an extension till March 31, 2026. This was announced in September 2025 to keep RoDTEP benefits flowing for exporters amid US tariff talks. Also, the Budget 2025-2026 has pumped ₹18,232 crore for the sustained support of RoDTEP.

The RoDTEP scheme has proved to be a nurturing initiative by the Government of India by refunding hidden taxes and ensuring global competition through WTO-compliant benefits. This scheme can help you scale your operations as it offers cost savings, faster claims, and stable incentives till March 2026.

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