RoDTEP Scheme Explained: Maximize Your Export Benefits in 2026

What Is the RoDTEP Scheme?

RoDTEP stands for Remission of Duties and Taxes on Exported Products. It is a Government of India scheme administered by the Directorate General of Foreign Trade (DGFT) that reimburses exporters for embedded central, state, and local duties and taxes that are not otherwise refunded through GST input tax credits or existing duty drawback mechanisms.

Think of it this way: when you manufacture a product for export, you pay electricity duty, mandi tax, stamp duty on procurement, fuel taxes on transport, and dozens of other levies that never show up on a GST invoice. These embedded costs make your product more expensive than it should be. RoDTEP gives that money back.

The scheme was introduced on 1 January 2021 as a WTO-compliant replacement for the Merchandise Exports from India Scheme (MEIS). Unlike MEIS, which offered flat-rate incentives, RoDTEP rates are calculated based on actual embedded tax incidence for each product category.

Who Can Apply for RoDTEP?

The eligibility criteria are straightforward, but there are a few exclusions that trip people up. Here is a clear breakdown:

To claim RoDTEP, you need a valid Import Export Code (IEC). If you haven't registered yet, sort that out first — the IEC application takes about 1-2 working days and costs just Rs 500.

RoDTEP Rates by Sector (2026 Update)

RoDTEP rates are notified HS-code-wise, so the rate you receive depends on the exact 8-digit tariff classification of your product. The table below shows indicative rate ranges for major export sectors. Always verify your specific HS code on the DGFT notification.

How to Claim RoDTEP: Step-by-Step

The claim process is fully electronic and integrated with ICEGATE (Indian Customs Electronic Gateway). Here is exactly what you need to do, from shipping bill to credit in your ledger:

1. Declare RoDTEP in your Shipping Bill — When filing your shipping bill on ICEGATE, select "Yes" for the RoDTEP claim flag. Enter the applicable rate and HS code. This must be done at the time of export, not after.
2. Ensure proper Let Export Order (LEO) — Your goods must physically leave India with a valid LEO from customs. No LEO, no claim.
3. Realise export proceeds — The bank realisation certificate (BRC) or e-BRC confirming receipt of foreign exchange is required. You have the standard FEMA timeline to realise proceeds.
4. Scroll generation by Customs — After the shipping bill is processed and EGM (Export General Manifest) is filed by the shipping line, customs generates a RoDTEP scroll automatically.
5. Duty Credit Ledger entry — The RoDTEP credit appears in your electronic duty credit ledger on ICEGATE. Log in to verify the amount.
6. Generate scrip or use directly — You can use the credit to pay customs duties on your own imports, or transfer the scrip to another importer via the ICEGATE platform.
7. Transfer or utilise within validity — Scrips are valid for 2 years from the date of generation. Use them or sell them before expiry.

RoDTEP vs MEIS: What Changed?

Exporters who used MEIS will notice several important differences. The shift from MEIS to RoDTEP wasn't just a name change — the entire philosophy behind the incentive changed.

The rates are generally lower under RoDTEP than they were under MEIS. However, the scheme is on much firmer legal ground. India faced a WTO dispute over MEIS, and the new structure removes that risk. For exporters, this means long-term policy stability rather than the constant threat of scheme withdrawal.

5 Common RoDTEP Mistakes (and How to Avoid Them)

1. Not Declaring RoDTEP on the Shipping Bill

This is the most common error and the most painful. If you don't tick the RoDTEP flag in your shipping bill at the time of export, you cannot claim it retroactively. There is no amendment process for this. Train your customs broker and your documentation team to treat the RoDTEP declaration as mandatory for every eligible shipment.

2. Using the Wrong HS Code

Your RoDTEP rate depends entirely on your 8-digit HS code. If you classify your product incorrectly, you either claim the wrong rate (which triggers a recovery notice from customs) or miss out on a higher rate you were entitled to. Get your HS classification right — it affects not just RoDTEP but also FTA preferential tariffs and duty drawback.

3. Exporting Under Advance Authorisation and Claiming RoDTEP

You cannot claim RoDTEP on exports made under an Advance Authorisation. This is explicitly excluded. If you use duty-free imports for manufacturing your export product, you need to choose one benefit — not both. Some exporters split production: duty-free inputs for AA shipments, domestic inputs for RoDTEP-eligible shipments.

4. Delayed Bank Realisation

Your RoDTEP scroll won't be generated until customs confirms that export proceeds have been realised. Delays in getting your e-BRC from the bank directly delay your credit. Follow up with your bank proactively and ensure your buyer's payment terms don't push you past the FEMA deadline.

5. Letting Scrips Expire

RoDTEP scrips have a two-year validity. If you don't import goods yourself and don't transfer the scrip to someone who does, the credit simply lapses. Set calendar reminders for scrip expiry dates. If you have no import needs, sell the scrip through a broker within the first few months — don't wait.

How the EU-India FTA Multiplies Your RoDTEP Benefits

Here is where things get interesting for exporters targeting Europe. The EU-India Free Trade Agreement eliminates or reduces import duties on the European side. RoDTEP reimburses embedded taxes on the Indian side. The two schemes stack — your European buyer pays less duty, and you recover more of your production costs.

Let's run the numbers on a practical example. Say you export engineered castings (HS 7325) with an FOB value of $10,000:

• RoDTEP credit: 1.5% of FOB = $150 back in your duty credit ledger
• EU FTA tariff saving: EU tariff drops from 2.7% to 0% = $270 saved by your buyer
• Combined effect: Your product is $420 more competitive than before, or about 4.2% of FOB value

For textiles (where both RoDTEP rates and EU tariffs are higher), the combined benefit can exceed 15% of FOB value. That's the difference between losing a bid and winning it.

Getting Started with Your First Export

If you're new to exporting from India, RoDTEP is just one piece of the puzzle. You'll also need to sort out your IEC registration, understand shipping documentation, and find reliable buyers. Our complete guide to exporting from India walks through the full process end-to-end.

The bottom line: RoDTEP is free money that many exporters leave on the table simply because they don't declare it on the shipping bill or don't understand the process. It takes zero additional investment to claim — just accurate documentation and a conversation with your customs broker. If you're exporting from India and not claiming RoDTEP, you're subsidising your competitors.