Table of Contents
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was launched by the Government of India on 1 January 2021, replacing the earlier MEIS (Merchandise Exports from India Scheme). Unlike MEIS which was a fixed percentage incentive, RoDTEP is a WTO-compliant scheme that specifically remits actual taxes and duties embedded in the cost of exported goods.
RoDTEP refunds central, state, and local duties and taxes incurred in the production of exported goods but not refunded under any other existing mechanism. This includes: taxes on electricity used in production, mandi tax, duty on fuel used in transportation, and various local levies that add to production cost but are not part of GST or customs refund chains.
Key Features of RoDTEP
- WTO-compliant scheme unlike MEIS which was challenged at WTO
- Benefit issued as transferable electronic scrips on ICEGATE portal
- Scrips can be used to pay Basic Customs Duty on imports or transferred to other importers
- Rates notified product-wise (HS Code wise) - typically 0.5% to 4.3% of FOB export value
- No cap on per-exporter benefit
- Available to all eligible exporters including SEZ and EOU units
Sectors Covered Under RoDTEP
- Textiles and garments
- Engineering goods
- Chemicals and pharmaceuticals
- Leather and footwear
- Agriculture and processed food products
- Handicrafts and handlooms
- Plastics and rubber products
How to Claim RoDTEP - Step by Step
When filing your Shipping Bill on ICEGATE, declare the intent to claim RoDTEP by selecting Y in the RoDTEP field. This must be done at the time of export - it cannot be claimed retrospectively.
After the shipment departs, the Export General Manifest (EGM) must be filed by the shipping agent. Only after EGM filing does the Customs system process the RoDTEP claim.
After processing, the RoDTEP credit is automatically posted as a transferable electronic scrip on your ICEGATE account. Typically processed within 7-30 days after EGM.
Use the scrip to offset Basic Customs Duty on your own imports. Alternatively, transfer (sell) it to another importer through the ICEGATE platform. Transfer price is typically at a slight discount to face value.
RoDTEP is designed to complement other schemes. An exporter can simultaneously claim RoDTEP plus Duty Drawback plus IGST Refund on the same shipment - as long as they are for different taxes and duties. This stacking is perfectly legal and is the standard practice for maximising export incentives.
RoDTEP is one of the most significant tools in an Indian exporter margin-management toolkit. Yet many exporters leave money on the table by not declaring RoDTEP claims at the time of Shipping Bill filing. Legal Chanakya provides end-to-end RoDTEP advisory - from eligibility check and Shipping Bill declaration to scrip utilisation and compliance documentation.
Need Help with Import & Export?
Get expert assistance from our CA/CS & legal professionals — fast, affordable, and 100% compliant.