Features of the RoDTEP scheme
Key features of the RoDTEP Scheme include:
- Refund of previously non-reimbursable duties and taxes: Charges such as mandi tax, VAT, coal cess, central excise duty on fuel, and similar levies are now reimbursed under this scheme. All benefits earlier covered under MEIS and RoSTCL are now subsumed under RoDTEP.
- Automated credit mechanism: Refunds are issued in the form of transferable electronic duty credit scrips, which are maintained and tracked through an electronic ledger system.
- Faster verification through digitisation: The scheme uses a fully digital platform, enabling quicker processing and clearance. Exporter verification is carried out through an IT-based risk management system to ensure efficiency and accuracy.
- Multi-sector coverage: RoDTEP applies uniformly across all sectors, including textiles. A dedicated committee determines the phased rollout, benefit rates for each sector, and related policy matters.
Why India introduced the RoDTEP Scheme
The United States had challenged India’s key export subsidy programmes at the World Trade Organization (WTO), arguing that they adversely affected American workers. A WTO dispute panel ruled against India, concluding that several export incentive schemes provided by the Government of India were inconsistent with WTO rules.
The panel recommended discontinuation of these export subsidy schemes. This ultimately led to the introduction of the RoDTEP Scheme to ensure compliance with WTO obligations.
The following export incentive programmes were advised to be withdrawn and replaced by RoDTEP:
- Merchandise Exports from India Scheme (MEIS)
- Export Oriented Units Scheme
- Electronics Hardware Technology Parks Scheme
- Bio-Technology Parks Scheme
- Export Promotion Capital Goods Scheme
- Special Economic Zones (SEZ) Scheme
New 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.
Click here to see the latest RoDTEP Scheme rates for different goods.
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.
How to avail RoDTEP scheme benefits?
The ICEGATE portal (Indian Customs Electronic Gateway) records the details of credits earned by exporters. At the port, exporters must declare their claim for RoDTEP benefits in the shipping bill for the relevant export item and generate a credit scrip. These scrips can be used to pay basic customs duties, claim rebates, or be transferred to other importers, as applicable.
The steps for generating and claiming scrips under the RoDTEP Scheme are as follows:
- The exporter must declare the RoDTEP claim in the shipping bill.
- Once the Export General Manifest (EGM) is filed, Customs processes the claim.
- After processing, a scroll containing all eligible Shipping Bills and approved amounts is generated and reflected in the exporter’s account on the ICEGATE portal.
- The exporter must log in to the ICEGATE portal and open a RoDTEP credit ledger account.
- After setting up the ledger account, the exporter can generate scrips by selecting the relevant shipping bills.
- Once the scrips are generated, the refund amount is credited to the exporter’s ledger account, which can be used to pay eligible import duties or transferred to other importers.
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.
How does the RoDTEP scheme work?
The RoDTEP scheme operates primarily through a digital platform, providing exporters with a streamlined process for receiving duty credits. The step-by-step procedure is as follows:
- Step 1: Declaration in the shipping bill
Exporters must declare their intention to claim RoDTEP benefits for each eligible export item in the shipping bill. Accurate declaration, including correct HS codes and product descriptions, is essential for processing the claim. - Step 2: Customs verification and approval
Once submitted, Customs authorities verify the details provided in the shipping bill. This ensures that the exports meet the eligibility criteria under the RoDTEP Scheme. - Step 3: Issuance of duty credit e-scrips
After approval by Customs, the eligible RoDTEP benefit is generated and reflected in the exporter’s ICEGATE account as an electronic scroll. The exporter can then create a RoDTEP credit ledger account via the “Credit Ledger” section on the ICEGATE portal. - Step 4: Utilisation and transfer of e-scrips
Once generated, e-scrips can be used to pay basic customs duty on imports. They may also be transferred electronically to other Importer Exporter Code (IEC) holders who maintain a RoDTEP ledger account.
The RoDTEP Scheme, along with its procedures and related provisions, is subject to periodic updates by the Government of India. Exporters are therefore advised to refer to the latest guidelines on the official ICEGATE and DGFT websites before making any claims.
Impact of RoDTEP on export sectors
By reimbursing previously non-recoverable duties and taxes, the RoDTEP Scheme is expected to enhance the competitiveness of several key export sectors in India. These include:
- Textiles and apparel: Reduced input costs through refunds on taxes applicable to dyes, chemicals, and electricity improve the global competitiveness of Indian textile and garment manufacturers, potentially increasing export volumes.
- Agriculture and marine products: Lower international logistics and processing costs, which often include embedded taxes, make Indian agricultural and marine exports more price-competitive in global markets.
- Leather and footwear: Tax rebates on inputs such as tanning chemicals and machinery help reduce production costs, thereby strengthening the sector’s global competitiveness and export potential.
- Engineering and auto components: Savings on raw materials and energy costs, including reduced duties on imported steel components and rebates on electricity used in manufacturing, enable these sectors to offer more competitive pricing in international 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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