The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is one of the most significant changes India has made in its export policy in recent years. Introduced by the Government of India to replace the Merchandise Exports from India Scheme (MEIS), RoDTEP officially came into effect on January 1, 2021.
Its goal is straightforward: refund previously non-refundable duties and taxes to exporters, making Indian goods more competitive in the global market. While the concept sounds simple, the system has specific eligibility rules, procedures, and calculation methods exporters must understand to take full advantage of it.
Let’s break it down step-by-step.
What is the RoDTEP Scheme?
The full form of RoDTEP is Remission of Duties and Taxes on Export Products. The scheme’s purpose is to refund taxes and levies at the central, state, and local level that were incurred during the production and distribution of exported goods but were not reimbursed through any other mechanism. This includes hidden taxes on things like fuel, electricity, and local levies.
The scheme issues benefits in the form of electronic scrips, which are a kind of credit that can be used to pay for certain customs duties. This digital system makes the process more efficient and transparent than previous paper-based schemes.
Key Features of the RoDTEP Scheme
The RoDTEP scheme is a major step toward making Indian exports more competitive. Its key features include:
- Refund of Non-Refundable Duties: It refunds various taxes that were previously not refunded, such as Mandi tax, VAT, Coal cess, and Central Excise duty on fuel.
- Automated System: The benefits are issued as electronic scrips, which are tracked and maintained through a digital ledger system. This reduces paperwork and streamlines the process.
- Electronic Scrips: The credits are issued as electronic scrips or licenses that can be used to pay applicable customs duties or be transferred to others.
- Product based Rebate: The rebate rate for each product is determined by its HSN code and is applied to the FOB (Free on Board) value of the goods exported.
- Quick Verification: The digital platform on the ICEGATE portal expedites the clearance process. A risk management system is used for quick and accurate verification of claims.
- Multi Sector Scheme: The scheme applies to all sectors, including the textile sector, and is designed to provide benefits across a wide range of product categories.
- WTO Compliant: Unlike the MEIS scheme, which was challenged by the US, the RoDTEP scheme is compliant with World Trade Organization (WTO) regulations.
Eligibility and Requirements
To take advantage of the RoDTEP scheme, exporters must meet certain requirements and eligibility criteria.
Eligible Exporters and Products:
- Manufacturer exporters and merchant exporters (traders) are both eligible.
- Special Economic Zone (SEZ) and Export Oriented Units (EOUs) also qualify.
- There are no turnover limits to claim RoDTEP benefits.
- The exported goods must have their country of origin as India.
- Goods exported via courier services or e commerce platforms can also be eligible if they meet the necessary conditions.
- Re exported goods are not eligible.
Requirements to Claim:
- You must be registered with the Indian Customs and Central Excise and Service Tax Authorities.
- A crucial requirement is to make a mandatory declaration on the shipping bill stating that you are claiming the RoDTEP benefit.
- You must have an Import Export Code (IEC) and be registered with the ICEGATE portal using a Digital Signature Certificate (DSC).
How to Claim RoDTEP: A Step-by-Step Guide
The process for claiming RoDTEP benefits is fully automated and done through the ICEGATE portal.
Step 1: Declaration on the Shipping Bill The first and most important step is to declare your intent to claim RoDTEP benefits on the shipping bill. This is a mandatory field that must be selected at the time of filing to trigger the claim process. Without this declaration, your claim will not be processed.
Step 2: Processing through ICEGATE Once the shipping bill and the Export General Manifest (EGM) are filed and processed by customs, the RoDTEP scrip is generated. This is then linked to your credit ledger account on the ICEGATE portal.
Step 3: Creating a RoDTEP Ledger If you have an IEC code and are registered with ICEGATE using a Digital Signature Certificate (DSC), you can create a RoDTEP credit ledger on the portal. This is where your duty credits will be stored.
Step 4: Generating the Scrip After your shipping bills have been successfully processed, you can log in to your ICEGATE account. From there, you can select the relevant bills and generate your RoDTEP scrip to claim the rebate amount.
How to Calculate Your RoDTEP Benefit
- Find Your Product’s RoDTEP Rate
Check the DGFT-issued RoDTEP schedule using your HSN code. - Determine the FOB Value
FOB (Free on Board) value is the cost of goods at the port, excluding freight and insurance. - Apply the Formula
RoDTEP Amount = FOB Value × Applicable RoDTEP Rate
Example:
FOB Value: ₹1,00,000
RoDTEP Rate: 2%
Benefit = ₹1,00,000 × 2% = ₹2,000 - Verify on ICEGATE
Always cross-check your processed claims on the portal.
Benefits of the RoDTEP Scheme
- No turnover cap – exporters of all sizes can benefit
- Simple process – everything is digital
- Faster refunds – claims can be processed within a week of invoice submission
- Cost reduction – makes Indian exports more competitive by reducing tax burden
RoDTEP vs MEIS: A Quick Comparison
The RoDTEP scheme was designed to replace MEIS, with several key differences that improve the system:
| Feature | MEIS | RoDTEP |
| WTO Compliance | Not compliant with WTO rules | Fully compliant with WTO rules |
| Nature of Benefit | Incentives provided as scrips | Reimbursement of taxes and duties |
| Coverage | Provided fixed incentives for specific products | Provides a refund for a wider range of embedded taxes |
| Issuance | Issued as physical transferable scrips | Issued as electronic, transferable scrips |
RoDTEP is a more transparent, automated, and globally compliant scheme that addresses the shortcomings of its predecessor.
Conclusion
For exporters, RoDTEP is more than just a refund system. It’s a competitive advantage. By recovering more of the taxes and duties that used to eat into margins, exporters can price more aggressively in global markets and reinvest the savings into growth.
The key is to integrate the RoDTEP claim process into your export workflow so every eligible shipment gets claimed without delay. With the system being fully digital and linked to customs filings, the process is efficient if you set it up right from the start.
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