Paragraphs 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.
Once a RoDTEP claim is credited as an electronic scrip, the Policy says what the scrip may pay for (paragraph 4.56), how the claims are audited (paragraphs 4.57 and 4.57A) and who settles leftover questions (paragraph 4.58). The Handbook adds the Annual RoDTEP Return in paragraph 4.94, which is the paragraph with the deadlines and composition fees.
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. The procedure is taken from Chapter 4 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Notifications, Public Notices and Trade Notices should be checked before you act.
Paragraph 4.56 says RoDTEP e-scrips pay only Basic Customs Duty. Paragraph 4.57 requires the exporter to keep records that support every claim, and a risk management system run by CBIC can pick cases for physical verification. Paragraph 4.94 of the Handbook requires an Annual RoDTEP Return by 31st March of the next financial year from exporters whose total RoDTEP claim is more than Rs. 1 crore in a financial year. Not filing it stops further scroll-out of claims at the port after a three-month grace period.
What the Policy says in paragraphs 4.56 to 4.59A
Paragraph 4.56 (nature of the rebate). The e-scrips are to be used only for payment of Customs duty leviable under the First Schedule to the Customs Tariff Act, 1975, which the paragraph describes as Basic Customs Duty. The scrip is therefore not a general-purpose credit. The duty credit ledger in which it sits is the subject of our article on Sections 51A and 51B of the Customs Act, 1962; the Policy paragraph does not explain that ledger and neither do we.
Paragraph 4.57 (monitoring, audit and risk management). For audit and verification the exporter must keep records that substantiate the claims made under the Scheme. CBIC, Department of Revenue, is to put in place a monitoring and audit mechanism with an IT-based Risk Management System (RMS) to verify the exporters' records physically on a sample basis. The RMS draws the sample cases objectively, on risk and other relevant parameters.
Paragraph 4.57A. For broad-level monitoring an Output Outcome framework is to be maintained and monitored at regular intervals. The paragraph gives no further detail.
Paragraph 4.58 (residual issues). Residual issues related to the Scheme that arise later are to be considered by an Inter-Ministerial Committee named the "RODTEP Policy Committee (RPC)". It is chaired by the DGFT and comprises members of the Department of Commerce and the Department of Revenue. Its decisions are binding.
Paragraph 4.59 and paragraph 4.59A. Paragraph 4.59 says the eligible RoDTEP export items, rates and per-unit value caps, wherever applicable, are in Appendix 4R. Paragraph 4.59A covers exports of products manufactured by Advance Authorisation holders (except deemed exports), EOU and SEZ units, and puts their items, rates and caps in Appendix 4RE. This article names the two Appendices and does not read out anything inside them; no rate or cap is stated here. RoDTEP is a scheme on the export side; the separate question of recovering GST on exports is covered on our GST refund on exports page.
The continuation notified on 30 September 2026
As notified on 30 September 2026 (Notification 41/2026-27), the RoDTEP Scheme continues up to 31st December 2026 for exports by domestic units, Advance Authorisation holders, SEZ units and EOUs. The rates and value caps in Appendix 4R and Appendix 4RE that applied on 30 September 2026 continue unchanged during that period, and the other terms and conditions remain unchanged. No paragraph of Chapter 4 is amended by it. This article says nothing about the position after 31 December 2026.
Procedure under the Handbook: paragraph 4.94, the Annual RoDTEP Return
The Handbook's stated purpose is to assess the nature of inputs used in export production and the actual taxes and duties incurred, as permissible under paragraph 4.54 of the Policy. Its six sub-paragraphs work as follows.
| Sub-paragraph | What it requires |
|---|---|
| 1 | Exporters claiming RoDTEP benefits file the Annual RoDTEP Return (ARR) in the format of Appendix 4RR of the Handbook. The ARR for claims filed in a financial year is filed on the DGFT portal by 31st March of the next financial year. The paragraph's own example: information for 2023-24 by 31.03.2025. The requirement begins with exporters (IECs) whose total RoDTEP claim exceeds Rs. 1 crore in a financial year across all 8-digit HS Codes. |
| 2 | Non-reporting leads to denial of benefits, and no further scroll out of RoDTEP claims for shipping bills is permitted at the Customs port of export after the grace period of three months, that is, after 30th June. |
| 3 | A composition fee of Rs. 10,000 for delayed filing up to 30th June (the 2023-24 example: by 30.06.2025). After 30th June, a composition fee of Rs. 20,000. After payment, scrolls resume within 45 days, until an online API-based message exchange is set up between DGFT and Customs. Resumption also covers shipping bills not scrolled earlier because of non-compliance. |
| 4 | The physical or digital records that support the duty remission claims, as filed in the ARR, are kept for five years and may be produced before the authority assessing the ARR. |
| 5 | ARR filings may be assessed periodically for due diligence and placed before the RoDTEP Committee for revision of rates, including higher rates where warranted. |
| 6 | Some ARR cases may be picked by IT-assisted risk-based criteria for scrutiny. After the authority's assessment, the scrip holder is liable to refund or surrender any excess claim under the relevant customs head, and failure to regularise the excess within the specified time frame stops further benefits under the Scheme. |
The Handbook does not say, in paragraph 4.94, what the "specified time frame" in sub-paragraph 6 is. It is silent on that, so check the order passed after scrutiny.
Two examples with invented names
Example 1: the threshold. Meridian Fabrics Pvt Ltd has RoDTEP claims in a financial year that add up to more than Rs. 1 crore across all 8-digit HS Codes. Under sub-paragraph 1 it must file the ARR on the DGFT portal by 31st March of the next financial year. Harbour Gifts LLP, whose total claim in the year stays at or below Rs. 1 crore, falls outside the starting requirement as the paragraph is worded.
Example 2: a late return. Meridian files its return after 30th June. Under sub-paragraph 3 it pays the Rs. 20,000 composition fee, and scroll-out of its shipping bills resumes within 45 days of payment. Had it filed on or before 30th June, the fee would have been Rs. 10,000. Until the filing is regularised, sub-paragraph 2 means no further scroll out at the port.
Where this article stops
Rates, value caps and the contents of Appendices 4R, 4RE and 4RR are not stated here. How RoDTEP compares with drawback is in Duty Drawback vs RoDTEP; the annual return is also discussed in RoDTEP: E-Scrips and the Annual RoDTEP Return, and the scheme's objective and operating principles are in our article on paragraph 4.54. Policy under paragraphs 4.56 to 4.59A is made under section 5 of the Act; see Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. The Handbook is issued by the Director General: see Section 6 of the Act.
Need help with RoDTEP claims and your annual return?
If your RoDTEP claims are stuck at the port or the annual return is overdue, our team can review the shipping bill and ledger position and help you regularise it. See our GST refund on exports support for the neighbouring claim that exporters usually reconcile at the same time.
Key takeaways
- Paragraph 4.56: RoDTEP e-scrips pay only Basic Customs Duty.
- Paragraph 4.57: keep records for every claim; CBIC's risk management system can sample them physically.
- Paragraph 4.58: the RODTEP Policy Committee, chaired by the DGFT, settles residual issues and its decisions are binding.
- Paragraph 4.94 of the Handbook: Annual RoDTEP Return by 31st March of the next financial year, starting with total claims above Rs. 1 crore.
- Late filing: Rs. 10,000 up to 30th June, Rs. 20,000 after it; records for five years.
- Notification 41/2026-27 of 30 September 2026 continues the Scheme up to 31st December 2026 at the rates and caps applicable on 30 September 2026.
Read next
- Paragraph 4.54 of the Foreign Trade Policy, 2023: RoDTEP objective and operating principles
- Paragraph 4.55 of the Foreign Trade Policy, 2023: exports not eligible for RoDTEP
- Sections 51A and 51B of the Customs Act, 1962: electronic cash ledger and duty credit ledger
- Duty Drawback vs RoDTEP
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.