Paragraph 4 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraph 4.54 is the foundation of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP). It sets out the objective, who decides the rates, the budget framework, the form of the rebate as a percentage of FOB value with a value cap, the link to realisation of sale proceeds, the electronic scrip and the date from which the Scheme runs. Notification 41/2026-27 dated 30 September 2026 continues the Scheme up to 31 December 2026.
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. It also takes in Notification No. 41/2026-27 dated 30 September 2026. Later Notifications, Public Notices and Trade Notices should be checked. Exporters weighing RoDTEP against the tax refund route can start with our GST refund on exports service.
RoDTEP refunds, as a rebate, duties and taxes on exported products that are not otherwise refunded (paragraph 4.54(i)); there is no rebate on duties already exempted, remitted or credited (4.54(ii)). The rebate is a notified percentage of FOB value with a value cap per unit, in Appendix 4R and Appendix 4RE (4.54(vii)), given as a transferable electronic scrip (4.54(ix)). The Scheme applies to exports from 1st January 2021 (4.54(x)). By Notification 41/2026-27 of 30 September 2026 it continues up to 31st December 2026.
The Scheme in paragraph 4.54
The sub-paragraph numerals of the right-hand column are displaced in the copy consulted; this article follows the order of the text and uses the numerals the paragraph carries.
4.54(i): the objective
The Scheme's objective is to refund duties, taxes and levies that are currently un-refunded:
- (a) duties, taxes and levies, at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in producing the exported product; and
- (b) such indirect duties, taxes and levies in respect of distribution of the exported product.
4.54(ii): no double benefit
The rebate under the Scheme is not available in respect of duties and taxes already exempted, remitted or credited. Rates for exports by Advance Authorisation holders, EOUs and SEZ units are notified separately in Appendix 4RE (paragraph 4.54(vii)); see our article on paragraphs 4.55 to 4.55B for the categories that are not eligible.
4.54(iii) to (vi): who decides, and how much
| Sub-paragraph | Rule |
|---|---|
| (iii) | Ceiling rates are determined by a Committee in the Department of Revenue / Drawback Division, with suitable representation of the Department of Commerce, the DGFT, line ministries and experts, on sectors prioritised by the Departments of Commerce and Revenue. |
| (iv) | The overall budget or outlay is finalised by the Ministry of Finance in consultation with the Department of Commerce. |
| (v) | The Scheme operates in a budgetary framework for each financial year, with calibrations and revisions so that projected remissions are managed within the approved Budget. No provision for remission of arrears or contingent liabilities is permissible to be carried over to the next financial year. |
| (vi) | The sequence of introduction across sectors, prioritisation, and the degree of benefit within the Committee's rates and a ceiling on per item or total benefit are decided and notified by the Department of Commerce in consultation with the Department of Revenue. |
4.54(vii): the rebate itself
A rebate is granted to eligible exporters at a notified rate as a percentage of FOB value, with a value cap per unit of the exported product wherever required, on items categorised under the notified 8-digit HS Code. For some items a fixed quantum of rebate per unit may be notified. Rates and value caps are notified in Appendix 4R and Appendix 4RE (the latter for exports of products manufactured by Advance Authorisation holders, except deemed exports, EOU and SEZ units). Efforts are to be made to review the rates on an annual basis and to notify them well before the start of a financial year. The Appendices are named only; no rate or cap is stated in this article.
4.54(viii): realisation of proceeds
The rebate is subject to the receipt of sale proceeds within the time allowed under the Foreign Exchange Management Act, 1999, failing which the rebate is deemed never to have been allowed. The rebate does not depend on realisation at the time it is issued, but safeguards as in operation under the drawback scheme, integrated tax and other GST refunds on exports also apply to RoDTEP claims. On the realisation rules, see our article on export declaration and realisation period under the 2026 Regulations.
4.54(ix): the e-scrip
The Scheme is implemented through end to end digitisation: the rebate is issued as a transferable duty credit or electronic scrip (e-scrip), kept in an electronic ledger maintained by the Central Board of Indirect Taxes and Customs. The rules and procedure for claims (manner and time of application, export realisation, documentation, sampling, record keeping) are notified by the Board on an IT enabled platform. The Board also builds provisions for recovery of the rebate where foreign exchange is not realised, suspension or withholding in case of fraud and misuse, and penalty. For the ledger, see sections 51A and 51B of the Customs Act, 1962 and our guide to RoDTEP e-scrips and the annual return.
4.54(x): date of effect
The Scheme takes effect for exports from 1st January 2021. For exports by the categories under paragraph 4.55 (x), (xi) and (xii), the implementation date is decided later as per paragraph 4.55B.
Later Notification in hand: 41/2026-27
As notified on 30 September 2026 (Notification No. 41/2026-27), issued under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 1.02 of the Policy, the RoDTEP Scheme shall continue up to 31st December 2026 and shall be available for exports made by Domestic Tariff Area units, Advance Authorisation holders, SEZ units and Export Oriented Units. Paragraph 2 of the Notification says the existing RoDTEP rates and value caps, as notified in Appendix 4R and Appendix 4RE and applicable on September 30, 2026, continue unchanged during that period. Paragraph 3 says the other terms and conditions of the Scheme remain unchanged.
The Notification does not amend any paragraph of the Policy. The chapter file consulted on 2 October 2026 prints paragraph 4.54 as above and does not mention the Notification. Nothing in the Notification is stated here about the position after 31 December 2026. The copy of the Notification is headed "To be published in the Gazette of India" and carries no S.O. number.
The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (section 5 of the FTDR Act). It is not a statute; it binds through the Act and the notifications under it.
A worked example
Hegde Textiles Private Limited, an invented exporter, ships eligible goods in November 2026. The Scheme is available on the Notification's terms up to 31st December 2026 at the rates and caps that applied on September 30, 2026 (Notification 41/2026-27). The rebate is a notified percentage of the FOB value, limited by any value cap per unit (paragraph 4.54(vii)); it comes as an e-scrip in the Customs ledger (4.54(ix)). If the sale proceeds are not received within the time allowed under the foreign exchange law, the rebate is deemed never to have been allowed (4.54(viii)), and recovery follows. It cannot claim the rebate on duties that were exempted, remitted or credited already (4.54(ii)).
Need help with RoDTEP and your refund position?
Choosing between RoDTEP, drawback and a GST refund, and keeping the realisation record clean, is where exporters lose time. Our GST refund on exports team can look at the whole export file with you.
Key takeaways
- RoDTEP refunds un-refunded duties, taxes and levies on exported products, including prior-stage cumulative taxes (paragraph 4.54(i)).
- No rebate on duties already exempted, remitted or credited (paragraph 4.54(ii)).
- Rate is a percentage of FOB value with a value cap per unit, in Appendix 4R and 4RE (paragraph 4.54(vii)).
- Proceeds must be received within the time allowed, or the rebate is deemed never allowed (paragraph 4.54(viii)).
- The rebate is a transferable e-scrip in the Customs ledger (paragraph 4.54(ix)); exports from 1st January 2021 (paragraph 4.54(x)).
- Notification 41/2026-27 of 30 September 2026 continues the Scheme up to 31st December 2026 at the rates and caps applicable on September 30, 2026.
Read next
- Paragraphs 4.55, 4.55A and 4.55B of the Foreign Trade Policy, 2023: exports not eligible for RoDTEP
- Paragraphs 4.56 to 4.59 of the Foreign Trade Policy, 2023: RoDTEP e-scrip, monitoring and annual return
- Duty drawback vs RoDTEP: which to claim
- RoDTEP: e-scrips and the annual RoDTEP return
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.