REMISSION OF DUTIES AND TAXES ON

EXPORTED PRODUCTS (RoDTEP)

Scheme Guide for Indian Exporters

This guide covers the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme — India's WTO-compliant export incentive that replaced the MEIS (Merchandise Exports from India Scheme) from January 2021. RoDTEP refunds embedded taxes and duties that are not refunded through any other mechanism, providing Indian exporters with a credit that can be used for customs duty payment.

1. Background and Policy Context

India's earlier export incentive scheme, MEIS (Merchandise Exports from India Scheme), was found by the WTO Appellate Body (DS541 — US challenge) to constitute a prohibited export subsidy under the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement). India was required to bring its export incentives into WTO compliance.

RoDTEP was designed as a WTO-compliant replacement — instead of being a profit subsidy, it remits only those taxes, duties, and levies embedded in the cost of production that are not refunded through other mechanisms (such as GST refund, duty drawback, or other rebate schemes). The principle is border tax adjustment — ensuring that Indian exports are not disadvantaged by embedded domestic taxes that other countries' exporters do not bear.

The taxes remitted under RoDTEP include:

Central and state taxes on fuel (diesel, natural gas, coal cess) used in manufacturing and transport that are not covered by GST input tax credit.

Electricity duty paid by manufacturers.

Mandi taxes and cesses on agricultural produce used as inputs.

Stamps and court fees on export-related transactions.

Embedded levies on inputs used in the manufacturing process not covered by GST.

Note: RoDTEP does not remit customs duty on imported inputs (covered by advance authorisation or DFIA), IGST on exports (covered by GST refund), or basic customs duty on inputs used in the export product (covered by duty drawback). It fills the gap — the taxes that fall through all other refund mechanisms.

2. How RoDTEP Works

2.1 Automatic Credit Generation

RoDTEP credits are generated automatically on ICEGATE when the Let Export Order (LEO) is granted on a Shipping Bill. The exporter does not need to file a separate claim — the system generates the credit based on:

The 8-digit HSN code declared on the Shipping Bill.

The FOB value of the export consignment.

The applicable RoDTEP rate for that HSN code (expressed as a percentage of FOB value or as a fixed amount per unit).

2.2 Electronic Credit Ledger — e-Scrip

RoDTEP credits are credited to the exporter's Electronic Credit Ledger on ICEGATE as an e-Scrip (a digital scrip with a unique identifier). The e-Scrip can be:

Used by the exporter to pay customs duties on imports — by assigning the e-Scrip against a Bill of Entry on ICEGATE.

Transferred to another entity — the e-Scrip is transferable. Exporters who do not have significant import duty payments can sell their RoDTEP scrips to importers in the secondary market.

The e-Scrip cannot be encashed directly into INR — it is a duty credit, not a cash rebate. The secondary market for RoDTEP scrips provides an indirect monetisation route — scrips typically trade at a discount to face value depending on market demand.

3. RoDTEP Rates by Sector

RoDTEP rates are notified by the Ministry of Commerce and Industry and are expressed as a percentage of the FOB value of exports. Rates vary by HSN code and product. The following illustrative ranges apply to major export sectors — always verify the current rate for your specific HSN code on the DGFT website or ICEGATE.

The above rates are indicative only. RoDTEP rates are subject to revision by the government. Always verify the current rate on the DGFT website (dgft.gov.in) or through ICEGATE for your specific 8-digit HSN code before calculating export economics. Rates for some sectors (steel, fertilisers, certain chemicals) have been set at 0% or excluded due to existing support mechanisms.

4. Eligibility and Conditions

4.1 Eligible Exporters

• RoDTEP is available to all exporters — including merchant exporters, manufacturer exporters, and exporters under advance authorisation — subject to the following conditions:
• The export is a physical export on a Shipping Bill filed on ICEGATE.
• The export is not made against duty-free or concessional duty inputs (exports under advance authorisation claim duty drawback on customs duty but may still claim RoDTEP — verify current policy).
• The HSN code is in the notified list of eligible products.
• The exporter has a valid IEC and GSTIN.
• The Shipping Bill is filed with the RoDTEP flag enabled.

4.2 Ineligible Transactions

• Exports through SEZ / EOU — have separate incentive schemes; RoDTEP generally not applicable.
• Export of services — covered by separate SEIS or not applicable.
• Deemed exports (domestic supplies to EPC holders, supply to projects under EPCG, etc.).
• Exports of products not in the notified RoDTEP schedule.
• Exports where the government announces temporary suspension of RoDTEP for specific products (e.g. suspension for steel products during high domestic demand periods).

5. Step-by-Step — Claiming RoDTEP

• File the Shipping Bill on ICEGATE — ensure the Shipping Bill includes the correct 8-digit HSN code and the RoDTEP claim flag is selected.
• The Let Export Order (LEO) is granted by customs after examination (if required) or facilitation.
• After the Export General Manifest (EGM) is filed by the carrier confirming the goods have left India, ICEGATE automatically processes the RoDTEP credit.
• The RoDTEP e-Scrip is generated and credited to the exporter's Electronic Credit Ledger on ICEGATE — this typically occurs within a few days of EGM filing.
• Log in to the ICEGATE portal and verify the credit in the Electronic Credit Ledger.
• To use the scrip: assign the e-Scrip against a Bill of Entry for imports — the customs duty payable is reduced by the amount of the e-Scrip used.
• To transfer or sell the scrip: transfer the e-Scrip to another registered entity through ICEGATE. The transferee can use the scrip for their own customs duty payments.

6. RoDTEP and Duty Drawback — Interaction

Duty drawback and RoDTEP are separate and largely non-overlapping schemes:

Duty Drawback (All Industry Rates): Refunds customs duty paid on imported inputs used in the exported product. Not to be confused with RoDTEP which covers domestic taxes.

RoDTEP: Remits domestic embedded taxes not covered by drawback, GST refund, or other mechanisms.

For most products, both drawback (on customs duty on imported inputs) and RoDTEP (on embedded domestic taxes) can be claimed simultaneously. However, there are caps and interactions — for example, if a product is exported under advance authorisation (duty-free imports), the drawback claim may be limited. Always confirm the specific drawback-RoDTEP interaction for your HSN code with a customs broker or CBIC circular.

7. RoDTEP Checklist

Doc 58 — India RoDTEP Scheme Guide — Neutral Template