RoDTEP (Remission of Duties and Taxes on Exported Products) is India's primary export incentive scheme as of 1 January 2021, replacing the MEIS scheme that was ruled WTO-inconsistent. For FY 2025-26, RoDTEP rates are notified under the Foreign Trade Policy 2023 and cover embedded duties and taxes that exporters cannot recover through GST refunds or drawback.

This guide explains the rate structure, how to claim the scrip, and how to combine RoDTEP with the IGST refund route, Advance Authorisation, and EPCG.

## The Statutory Basis

RoDTEP is notified under **Foreign Trade Policy 2023 (FTP 2023)**, effective 1 April 2023. The scheme is governed by:

- **Customs Act 1962 (Section 75A)** — enabling provision for remission of embedded taxes
- **MoF Notification No. 19/2021-Customs (N.T.)** — original RoDTEP notification
- **DGFT Public Notice 08/2023** — updated FTP 2023 rate schedule
- **CBIC Circular 14/2021-Customs** — operational guidelines for scrip issuance on ICEGATE

RoDTEP remits embedded central and state taxes not refunded elsewhere: electricity duty, mandi tax, state GST on fuel used in transportation, central and state taxes on pesticides/fertilisers used in agriculture, and other non-recoverable embedded costs.

## The Rate Structure: Key HS Categories for FY 2025-26

RoDTEP rates are expressed as a percentage of the FOB export value and vary by HS (Harmonised System) code. The following table covers the major export sectors:

| Sector | Typical HS Chapters | RoDTEP Rate Range |
|---|---|---|
| Textiles & Apparel | 50–63 | 0.5% – 4.3% |
| Engineering Goods | 72–89 | 0.3% – 2.5% |
| Marine & Seafood | 03, 16 | 0.5% – 4.0% |
| Pharmaceuticals | 29, 30 | 0.5% – 2.0% |
| Chemicals & Plastics | 28–40 | 0.3% – 1.8% |
| Agricultural Products | 01–24 | 0.5% – 3.5% |
| Leather & Footwear | 41–64 | 1.0% – 3.5% |
| Gems & Jewellery | 71 | 0.3% (capped) |

> Note: Specific rates vary at the 8-digit HS level. Always verify against the MoF notification applicable to your export shipment date, as rates are subject to periodic revision.

## What RoDTEP Does NOT Cover

RoDTEP remits embedded duties not otherwise refundable. It does **not** cover:

- IGST paid on inputs (refundable under GST refund route — file GSTR-1 + GSTR-3B and apply in RFD-01)
- Basic Customs Duty on imported inputs (covered by Advance Authorisation or Drawback)
- GST paid on domestic inputs used in export (covered by Input Tax Credit under GSTR-3B)

This is the most common mistake exporters make — they assume RoDTEP replaces the GST refund. It does not. The two run in parallel.

## How the Scrip Mechanism Works

RoDTEP benefits are issued as **transferable electronic scrips** on the ICEGATE portal (Indian Customs Electronic Gateway). The process:

1. Declare the RoDTEP claim in your **Shipping Bill** at the time of export (select the RoDTEP column)
2. After the Export General Manifest (EGM) is filed by the shipping line, ICEGATE automatically calculates the scrip value
3. The scrip is credited to your ICEGATE e-scrip account, typically within 15–30 days
4. Scrips are transferred or used to pay Basic Customs Duty on subsequent imports via ICEGATE

**Critical:** If you do not declare RoDTEP at the time of filing the Shipping Bill, you cannot claim it retrospectively. The declaration is irrevocable once the Shipping Bill is filed.

## Combining RoDTEP with Other Export Schemes

RoDTEP can be combined with most other export incentive schemes, but with restrictions:

| Scheme | Can Combine with RoDTEP? | Notes |
|---|---|---|
| IGST Refund (LUT Route) | Yes | Claim separately via GST portal (RFD-01) |
| Duty Drawback (All Industry Rates) | Yes, but AIR covers different items | Drawback covers customs duty on inputs; RoDTEP covers other embedded taxes |
| Advance Authorisation (AA) | Yes | AA covers imported inputs duty-free; RoDTEP covers domestic embedded duties |
| EPCG Scheme | Yes | EPCG covers capital goods import duty; RoDTEP is on export value |
| MEIS | No — MEIS is discontinued | RoDTEP replaced MEIS from 1 Jan 2021 |
| Export from SEZ / EOU | No — RoDTEP not available | SEZ/EOU units have separate benefit frameworks |

## A Worked Example: Pharmaceutical Exporter, Vizag

A pharmaceutical manufacturer in Visakhapatnam exports API (Active Pharmaceutical Ingredients) with:
- FOB value: ₹2 Cr per month (₹24 Cr annually)
- HS Chapter 29, RoDTEP rate: 1.2%
- IGST paid on domestic inputs: ₹18 lakh annually (refundable via GSTR-3B + RFD-01)
- Imported raw material: ₹4 Cr at 10% BCD (₹40 lakh) — covered under Advance Authorisation

**RoDTEP annual benefit:** ₹24 Cr × 1.2% = **₹28.8 lakh in e-scrips** (usable against import duty payments)
**IGST refund:** ₹18 lakh (cash refund to bank account)
**AA savings:** ₹40 lakh (duty waived on imports)

**Total annual export incentive stack: ₹86.8 lakh** on ₹24 Cr of exports — a 3.6% effective benefit rate. None of these three schemes conflict with each other.

## Common Errors That Cost Exporters Millions

**1. Not declaring RoDTEP at Shipping Bill stage.** Once the Shipping Bill is filed without RoDTEP, the benefit is lost permanently.

**2. Treating RoDTEP as cash income.** RoDTEP scrips are not cash — they can only be used to pay BCD on imports. If you have no imports, the scrips must be sold to an importer (they are freely transferable). The discount on scrip sales is typically 1–3%.

**3. Claiming RoDTEP on SEZ/EOU exports.** SEZ units and EOUs are not eligible — this is a common error in companies that export through both DTA and SEZ units.

**4. Not tracking HS code changes.** RoDTEP rates are notified at the 8-digit HS level. A change in product classification (which happens when you add or change a process) changes your rate. Always verify the rate before shipping.

**5. Missing the IGST refund separately.** Exporters under LUT/bond are not charged IGST on the export itself, but they accumulate ITC on domestic inputs. This ITC must be claimed via RFD-01 — it is separate from RoDTEP and runs on a different timeline.

## How HRA Handles Export Incentive Compliance

Our export incentive practice covers RoDTEP Shipping Bill declarations and scrip management, IGST refund filings (RFD-01), Advance Authorisation and EPCG applications with DGFT, duty drawback claims, and STPI/SEZ compliance for technology exporters.

[See our Indirect Tax & Export Incentives services →](/services/indirect-tax)

## Frequently Asked Questions

**Q: What replaced MEIS and when?**
MEIS (Merchandise Exports from India Scheme) was replaced by RoDTEP from 1 January 2021. The transition was mandated by a WTO ruling that MEIS constituted a prohibited export subsidy. RoDTEP is structured as a remission of embedded taxes and is WTO-compliant.

**Q: How long does it take to receive the RoDTEP scrip?**
Typically 15–30 days after the EGM is filed by the shipping line. For SEA exports, this is usually within 30 days of vessel departure. For AIR exports, it is faster.

**Q: Can I transfer my RoDTEP scrips?**
Yes. RoDTEP scrips are freely transferable via ICEGATE. Exporters who do not import can sell their scrips to importers through licensed scrip brokers.

**Q: Is RoDTEP income taxable?**
Yes. The benefit received under RoDTEP is taxable income. However, the embedded taxes being remitted are costs — so the net tax impact depends on your profitability. Consult your CA for the correct treatment in your specific case.

**Q: What is the last date for resolving pending RoDTEP claims?**
There is no fixed expiry for filed claims, but unresolved discrepancies in Shipping Bill data must be addressed through ICEGATE's query resolution mechanism. Scrips not utilised or transferred within their validity period (typically 24 months from issuance) expire.

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*Prepared by Harun Raaj & Associates, Chartered Accountants, Visakhapatnam. For export incentive advisory, DGFT filings, and GST refund management, [contact our team](/contact).*

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## See Also

- [Advance Authorisation under Foreign Trade Policy: Routes, SION Norms, and Closing Export Obligation](https://www.harunraaj.com/blog/advance-authorisation-foreign-trade-policy-sion-export-obligation)
- [GSTR-9 Annual Return — Complete Filing Guide for FY 2025-26](https://www.harunraaj.com/blog/gstr-9-annual-return-filing-guide)
- [GST Registration in India — Complete Process, Documents & Timeline (2026)](https://www.harunraaj.com/blog/gst-registration-india-complete-guide)

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