Features of the RoDTEP scheme
Key features of the RoDTEP Scheme include:
- Duty and tax remission – Refunds embedded taxes that are not covered under other schemes
- Fully digital process – Automated claims via ICEGATE with minimal paperwork
- Product-specific rates – Notified under Appendix 4R (DTA) and 4RE (AA/SEZ/EOU)
- Wide sector coverage – Includes agriculture, textiles, electronics, leather, engineering, and more
- E-commerce and SME-friendly – Provides inclusive benefits for online exporters
- Automation and transparency – Risk-based processing with instant credit to the ledger
These features make the RoDTEP Scheme efficient and focused on supporting exporters.
Why India introduced the RoDTEP Scheme
India introduced the RoDTEP Scheme to replace the WTO-incompatible MEIS and to neutralise hidden taxes on exports.
Key objectives:
- Reduce the burden of embedded costs on exporters
- Improve the global competitiveness of Indian products
- Support SMEs and promote employment generation
- Ensure compliance with WTO guidelines while encouraging exports
- Strengthen the overall export ecosystem
The scheme directly contributes to increased foreign exchange earnings and supports broader economic growth.
RoDTEP rates
RoDTEP rates are notified under Appendix 4R (for DTA exports) and Appendix 4RE (for AA/SEZ/EOU exports) on the DGFT portal.
Important 2026 update:
As per DGFT Notification No. 60/2025-26 dated 23 February 2026, the rates and value caps are currently restricted to 50% of the notified rates with immediate effect until 31 March 2026. Full rates are expected to be restored from 1 April 2026.
RoDTEP rates vary by HS code, typically ranging from 0.01% to 4.3% of the FOB value, and are designed to reflect sector-specific embedded costs. Exporters should refer to the latest Appendix 4R and 4RE documents on the DGFT website for exact rates.
Latest updates on RoDTEP Scheme
Key developments under the RoDTEP Scheme for 2026 include:
- Extension until 31 March 2026 for exports under DTA, AA, SEZ, and EOU
- Rates reduced to 50% of the notified values, as per Notification No. 60/2025-26, effective from 23 February 2026
- Full restoration of the original rates planned from 1 April 2026
- Alignment with Customs Tariff changes effective from 1 October 2024 and 1 May 2025
Exporters should regularly monitor DGFT notifications to ensure compliance and maximise available benefits.
Steps to claim RoDTEP
Wondering how to apply for the RoDTEP scheme? The process is quite simple, and exporters can easily claim the benefit by following these steps:
1. Declaration on Shipping Bill:
Exporters must declare on the shipping bill that they want to claim RoDTEP benefits. This step is compulsory for processing eligible shipments.
2. Process through ICEGATE:
After the shipping bill is processed, the exporter must submit the Export General Manifest (EGM) on the ICEGATE portal. The RoDTEP scrip is then issued and linked to the exporter’s credit ledger account.
3. Creating the RoDTEP Ledger:
Exporters with an IEC code and ICEGATE registration (using a DSC) can create a RoDTEP credit ledger on the portal to receive duty credits.
4. Generating the Scrip:
Once shipping bills are processed, exporters can log in to ICEGATE, choose the relevant bills, and generate the RoDTEP scrip to claim their rebate.
Eligibility criteria for RoDTEP scheme
To avail of the benefits under the RoDTEP scheme, certain eligibility criteria must be met:
- Registered exporters: Only exporters registered with the Directorate General of Foreign Trade (DGFT) can apply.
- Product eligibility: Exporters must deal with products that are eligible for the scheme as per the notified list.
- E-commerce exporters: Even exporters using online platforms are eligible under the scheme.
- Compliance with guidelines: Exporters must comply with all customs and export regulations to benefit from the scheme.
- Submission of required documents: Proper documentation, including tax invoices, shipping bills, and export contracts, must be submitted to avail benefits.
This eligibility framework ensures that the benefits of the scheme reach the right sectors while maintaining transparency and compliance.
Benefits under RoDTEP scheme
The RoDTEP scheme offers several key benefits for Indian exporters, significantly aiding the growth of the export sector:
- Financial relief: The scheme provides direct financial relief by remitting taxes and duties embedded in export goods.
- Improved export competitiveness: By reducing costs, exporters can offer competitive prices, allowing them to capture a larger global market share.
- Ease of doing business: Digital processing streamlines the refund process, making it faster and simpler for exporters to avail themselves of refunds.
- Support for small businesses: SMEs can benefit from the relief provided by RoDTEP, enhancing their ability to expand their market presence.
- Diversification of markets: Competitive pricing enables exporters to explore new markets, boosting international trade.
By addressing hidden costs in exports, the scheme strengthens India's position as a global trade player. For more details, you can also explore ICEGATE.
Working of RoDTEP scheme
Declaration in the Shipping Bill:
The exporter must clearly state in the shipping bill that they want to claim RoDTEP benefits for each eligible item. This declaration is compulsory for the claim to be processed.
Customs Processing:
After the carrier files the Export General Manifest (EGM), Customs processes the claim based on the shipping bill declaration. A risk management system checks the records to ensure fast and accurate processing.
Issuance of E-Scrips:
Once the claim is approved, the eligible rebate amount is prepared as a “scroll” and made available in the exporter’s ICEGATE account.
Credit Ledger Account Creation:
The exporter must log in to the ICEGATE portal using their Digital Signature Certificate (DSC) to create a RoDTEP credit ledger account, if not already done, to receive and manage credits.
Scrip Generation and Use:
The exporter can then log in, choose the relevant shipping bills, and generate electronic scrips (e-scrips). These can be used to pay basic customs duty on imports or transferred (sold) electronically to other importers.
Impact of RoDTEP on export sectors
By refunding taxes and duties that were not previously reimbursed, the RoDTEP scheme helps make many of India’s key export sectors more competitive. Some of these include:
Textiles and apparel:
Refunds on taxes linked to dyes, chemicals, and electricity help reduce production costs. This makes Indian textile and garment products more competitive globally and can lead to higher export volumes.
Agriculture and marine products:
Lower logistics and processing costs—many of which include hidden taxes—make Indian farm and seafood products more affordable in international markets.
Leather and footwear:
Tax refunds on inputs like tanning chemicals and machinery help reduce manufacturing costs. This strengthens the global position of India’s leather and footwear industry and increases export opportunities.
Engineering and auto components:
Savings on raw materials and energy—such as reduced duties on steel parts and refunds on electricity used in production—allow these sectors to offer more competitive pricing in global markets.
Challenges related to RoDTEP scheme
While the RoDTEP scheme offers significant benefits, exporters face some challenges:
- Complex documentation: The documentation process can be cumbersome for small businesses, causing delays in refund claims.
- Rate disparities: Different sectors receive different refund rates, leading to inconsistencies.
- Limited awareness: Some exporters may not be fully aware of the scheme or how to utilise it effectively.
- Compliance challenges: Exporters must maintain strict compliance with government regulations to avoid issues with refunds.
- Technical issues: The online processing system may face technical glitches that hinder smooth operation.
Despite these challenges, the scheme continues to support India’s export sector, with efforts being made to improve its accessibility and efficiency.
Difference between MEIS and RoDTEP
The Merchandise Exports from India Scheme (MEIS) and the RoDTEP scheme both aim to boost exports, but they have distinct differences, as shown below:
| Feature | MEIS | RoDTEP |
| Type of benefit | Duty-free scrips for exporters | Remission of taxes and duties on goods |
| Sector focus | Primarily for goods and services | Broad range of sectors including agriculture |
| Refund method | Scrip-based refund | Direct cash refund to exporters’ accounts |
| Eligibility | Based on HS code of exports | Product-based eligibility |
| Implementation | Managed by DGFT and customs authorities | Managed digitally via the customs department |
Conclusion
The RoDTEP scheme plays a crucial role in boosting India’s export sector by offering financial relief to exporters. By remitting indirect taxes and duties on exported goods, it makes Indian products more competitive in global markets. Although challenges remain, the digitalisation and ease of processing provided by RoDTEP show significant promise. For businesses involved in exports, this scheme is an important tool for achieving growth and success in international trade.
For entrepreneurs looking to expand their business ventures, applying for a business loan to complement export initiatives can provide additional financial flexibility. You can also use a business loan EMI calculator to plan your repayments effectively and estimate monthly instalments in advance. Understanding the applicable business loan interest rate can help you make informed borrowing decisions, while checking your business loan eligibility ensures a smooth application process.
With Bajaj Finserv Business Loan, you can avail financing of up to Rs. 80 lakh, with competitive interest rates, flexible repayment tenures, and quick disbursal, supporting your business growth and export ambitions.
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