RoDTEP — Remission of Duties and Taxes on Exported Products | ISLF

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was introduced by the Government of India with effect from January 1, 2021, replacing the Merchandise Exports from India Scheme (MEIS) that was found to be non-WTO compliant. Unlike MEIS (which provided incentives as a percentage of FOB value across broad product categories), RoDTEP is designed to remit actual embedded taxes and duties that are borne by Indian exporters but not refunded through any other mechanism — making it WTO-compliant under the Agreement on Subsidies and Countervailing Measures (ASCM).

RoDTEP covers taxes at the central, state, and local government levels that are embedded in the cost of exported goods — including central and state excise duties on inputs not covered by GST (certain fuels, alcohol, electricity), stamp duties on export documents, mandi taxes on agricultural inputs, and other local levies. The rate schedule (published in DGFT Notification No. 19/2015-20 and subsequent amendments) specifies the RoDTEP rate for each HS code (at the 8-digit level) as a percentage of FOB value.

RoDTEP benefit is available to all exporters of goods (both direct and through merchant exporters), except those specifically excluded — exports from SEZ/EOU units (which already receive duty exemptions), exports of imported goods (re-exports), and certain product categories that are explicitly excluded in the rate schedule. For most Indian goods exporters, RoDTEP represents an additional 0.5% to 4.3% of FOB value in additional incentive — a meaningful contribution to export profitability.

The RoDTEP process begins at the time of Shipping Bill filing on ICEGATE. The exporter (through their Customs Broker) must declare the claim for RoDTEP in the Shipping Bill under SB003 — by selecting the applicable RoDTEP rate and confirming that the export is eligible for RoDTEP benefit. This declaration is critical — if the SB003 declaration is not made at the time of Shipping Bill filing, the RoDTEP benefit cannot be claimed retrospectively for that shipment.

After the Let Export Order (LEO) is granted by customs and the shipping bill is registered as 'RoDTEP eligible', the system generates a duty credit scrip on the ICEGATE/RoDTEP portal. The scrip has a specific value (FOB value × RoDTEP rate), a unique scrip number, and a validity period (typically 12 months from the date of LEO). The scrip can be transferred once — to another registered importer — or used directly by the exporter to pay Basic Customs Duty on future imports.

ISLF manages the complete RoDTEP process for its exporter clients: SB003 declaration in every eligible Shipping Bill, ICEGATE scrip tracking and download, scrip value reconciliation against expected entitlement, and scrip utilization advisory (direct use versus sale to other importers). We maintain a monthly RoDTEP entitlement register for each client showing the total benefit generated and utilized, providing full transparency and documentation for audit purposes.

The RoDTEP rate schedule is complex — different rates apply to different HS codes within the same chapter, and the rates have been revised multiple times since the scheme's introduction. Some high-value export categories (chemicals, pharmaceuticals, engineering goods) have rates as low as 0.5%, while labor-intensive sectors (textiles, leather, footwear) have rates as high as 4.3%. The current RoDTEP rate schedule is published on the DGFT website and the ICEGATE portal.

For exporters with a diverse product portfolio or those who export to multiple countries with different Incoterms structures, RoDTEP optimization requires careful analysis. ISLF's RoDTEP advisory service includes: rate verification for each HS code exported by the client, identification of any HS code reclassification opportunities that might result in a higher RoDTEP rate, review of export documentation to ensure SB003 declarations are being made on every eligible shipment, and annual RoDTEP benefit summary for accounts and audit purposes.

RoDTEP scrips are tradeable — exporters who prefer to monetize their RoDTEP benefit immediately (rather than using scrips for their own imports) can transfer scrips to importers who pay a premium (typically 95-98% of face value) for RoDTEP scrips as an alternative to paying customs duty in cash. ISLF helps clients identify buyers for their RoDTEP scrips and facilitates the transfer on the ICEGATE portal, converting RoDTEP entitlement into immediate cash — an important cash flow benefit for exporters.