RoDTEP Scheme 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.
The RoDTEP scheme remits embedded central, state and local duties and taxes on exported goods that are not refunded through any other mechanism — such as VAT on transport fuel, electricity duty and mandi tax. The benefit is a transferable electronic duty credit, claimed through a declaration on the Shipping Bill on ICEGATE.
Overview
RoDTEP (Remission of Duties and Taxes on Exported Products) replaced the earlier MEIS scheme to make India's export incentives WTO-compliant. Its guiding principle is that taxes and duties embedded in the export supply chain, which are neither creditable under GST nor refundable elsewhere, should be remitted so that exports carry no hidden domestic tax burden.
Legal Basis
RoDTEP is a scheme of the DGFT under the Foreign Trade Policy 2023, with rates notified by the Department of Commerce and operationalised by the CBIC through the ICEGATE electronic ledger. The remission is delivered as a transferable duty credit under the Customs Act framework for such scrips.
What RoDTEP Covers
| Embedded levy | Illustration |
|---|---|
| VAT/excise on fuel | Diesel/petrol used in transport and generation |
| Electricity duty | Duty on power consumed in production |
| Mandi tax / stamp duty | State/local levies in the supply chain |
| Other un-refunded levies | Taxes not creditable under GST or drawback |
Step-by-Step Claim Process
- Declare on the Shipping Bill: The exporter must select "yes" to the RoDTEP declaration for each item at the time of filing the Shipping Bill — it cannot be added later.
- Processing: After the Let Export Order and EGM, the system computes the RoDTEP amount using the notified rate and cap for the tariff line.
- Ledger credit: The credit appears in the exporter's RoDTEP ledger on ICEGATE.
- Scrip creation: The exporter creates an e-scrip from the ledger, which is transferable.
- Utilisation: Use the scrip to pay Basic Customs Duty on imports, or transfer/sell it to another importer.
Worked Example
An exporter ships goods with FOB value ₹30,00,000 where the notified RoDTEP rate for the tariff line is 1.2% with no binding cap breached.
- RoDTEP credit = 1.2% × ₹30,00,000 = ₹36,000
- This ₹36,000 is credited to the RoDTEP ledger and can be converted to a transferable e-scrip.
- Always verify the current rate and per-unit value cap for the exact HS code, as rates are revised periodically.
Common Pitfalls
- Not selecting the RoDTEP declaration on the Shipping Bill — the benefit is permanently lost for that shipment.
- Assuming eligibility for excluded categories or units without checking the notification.
- Letting scrips lapse — e-scrips have a validity period from creation.
- Confusing RoDTEP with the IGST refund; they are separate and both may apply.