If you export goods or services from India as a merchant, freelancer, or agency, government export incentives can directly improve your profit margins.
One such incentive supporting exporters is the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. It has replaced the earlier MEIS scheme and is now the primary export incentive available to Indian businesses.
This article is your one-stop guide to the RoDTEP scheme helping you understand the basics, check your eligibility, organise the right documents, and claim the benefits without confusion.
Key Takeaways
- RoDTEP refunds hidden taxes such as mandi fees, electricity duty and fuel charges that are not covered under GST.
- It is meant only for exporters of goods, both manufacturer and merchant exporters, with a valid IEC and shipping bill declaration.
- Refunds are calculated as a percentage of the FOB value and vary by HS Code; all rates are listed under Appendix 4R of the Foreign Trade Policy.
- Benefits are issued digitally as e-scrips on ICEGATE, which can be used to pay Basic Customs Duty or transferred to another importer.
- Major sectors covered include textiles, engineering goods, agricultural products, pharma, chemicals, marine exports, e-commerce exports and auto components.
What Is the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?
The RoDTEP scheme, launched on 1 January 2021, is a government programme that refunds the taxes and duties you pay while exporting. These taxes are not covered under GST and are usually built into your production and delivery costs. They come from central, state, and local authorities and are not refunded through any other mechanism.
RoDTEP replaced the earlier Merchandise Exports from India Scheme (MEIS). Unlike MEIS, which faced global trade objections, RoDTEP is built as a stable, long-term scheme with clear rates and a fully digital claim process.
Who Is Eligible for RoDTEP? And Who Cannot Claim It?
General Eligibility for Exporters
You can claim RoDTEP scheme if the following conditions are met:
- The scheme covers all sectors. It is divided into two categories:
- 4R: for exporters from Domestic Tariff Areas (DTA)
- 4RE: for exporters from Special Economic Zones (SEZs), Export Oriented Units (EOUs), and Advance Authorisation (AA) holders.
- Both manufacturer exporters and merchant exporters are eligible
- There is no minimum turnover requirement, which means small and large exporters can apply alike.
- The exported products must be of Indian origin, as re-exported goods do not qualify for the scheme.
- The RoDTEP option must be selected while filing the shipping bill
- The product must fall under the RoDTEP schedule of notified items
Pro Tip: You must hold a valid Importer–Exporter Code (IEC) and have a registered and verified account on the ICEGATE portal to receive RoDTEP e-scrips. These two are essential without them, you cannot claim RoDTEP benefits even if your export meets all other eligibility criteria.
Who Cannot Claim RoDTEP?
The following exports are not eligible for RoDTEP benefits:
- Products covered under export restrictions or prohibitions
- Deemed exports
- Products manufactured in bonded warehouses
- Shipping bills submitted without selecting RoDTEP at the time of export
- Exports made without ICEGATE EDI-generated documents
How Does RoDTEP Work?
To receive RoDTEP benefits, you have to follow a defined process it is not given automatically. Each step, from filing the shipping bill to generating the e-scrip, has to be done correctly. Here’s how the process works, step by step.
Step 1: Declare RoDTEP in the Shipping Bill
The process begins when you file the shipping bill. At this stage, you must clearly declare that you are claiming RoDTEP. This declaration communicates your intent to Customs and activates the benefit for that export. If the declaration is missed, the claim cannot be added later.
Step 2: Customs Processes the Claim After EGM
Once the export takes place and the Export General Manifest (EGM) is filed by the shipping carrier, Customs begins reviewing the claim. The details from the shipping bill are checked to confirm eligibility under RoDTEP.
Step 3: Scroll Generation on ICEGATE
After verification, Customs generates a scroll. This scroll contains the eligible shipping bills and the admissible RoDTEP amount for each export. It is digitally uploaded to the exporter’s ICEGATE account and serves as confirmation that the benefit has been approved.
Step 4: Create the RoDTEP Credit Ledger Account
To receive the approved credit, the exporter must log in to ICEGATE and create a RoDTEP credit ledger account. This can only be done by Importer Exporter Code IEC holders registered on ICEGATE with a valid Digital Signature Certificate (DSC). The ledger acts as a digital repository where RoDTEP credits are stored after approval.
Step 5: Generate the e-Scrip
Once the credit ledger account is active, the exporter can log in to their accounts and select the relevant shipping bills to generate an e-Scrip. Once the e-Scrip is generated, the refund is credited to the exporter’s ledger account. It can then be used to pay eligible duties during imports or transferred to another importer.
Step 6: HSN Code Determines the Rate
RoDTEP does not have a single fixed rate for all products. The refund depends on the HSN code of the exported item. The government publishes these rates through DGFT, and they typically fall between 0.3% and 4.3% of the Free On Board (FOB) value.
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Documentation Checklist for the RoDTEP Scheme
- Importer–Exporter Code: Must be valid and active
- Shipping Bill: The most critical document for the refund
- Electronic Bank Realisation Certificate (eBRC): Proof that export payment was received
- Digital Signature Certificate: Required for signing documents and accessing ICEGATE
- Registered Account on the ICEGATE Portal: For e-scrip generation and tracking
- Export Invoice and Packing List: Proof of goods sent abroad
- Bill of Lading/Airway Bill: Proof that goods were physically dispatched
- Electronic Data Interchange (EDI) Registration: Required for digital communication with customs
- GST Returns (if applicable): Helps show compliance with export-linked GST rules during verification
Pro Tip: If you receive funds from abroad without using a compliant payment route, your eBRC may get delayed, which can hold back your RoDTEP claim. Use RBI-approved payment channels with proper remittance codes to avoid delays in ledger credit.
RoDTEP Documentation Checklist
- Importer–Exporter Code
- Shipping Bill
- Electronic Bank Realisation Certificate
- Digital Signature Certificate
- ICEGATE Portal Registration
- Export Invoice & Packing List
- Bill of Lading / Airway Bill
- Electronic Data Interchange Registration
- GST Returns (if applicable)
RoDTEP Rates and Benefits
How RoDTEP Rates Are Determined (Appendix 4R)
RoDTEP does not offer a flat rate to all exporters. Instead, rates vary based on the product category and are calculated as a percentage of the FOB value of each export shipment.
These rates are officially listed in Appendix 4R of the Foreign Trade Policy and are revised periodically by the government. Each HS Code has its own RoDTEP rate, which may change based on fuel prices, logistics costs, and embedded taxes. To find your applicable rate:
- Look up your HS Code in Appendix 4R
- Check the most recent DGFT or CBIC circular
- Ensure your shipping bill reflects the correct HS Code even a minor mismatch can lead to rejection
The RoDTEP e-Scrip
When your RoDTEP claim is approved, the refund is not paid in cash. Instead, you receive an e-scrip, which is a digital credit stored in your electronic ledger on the ICEGATE portal.
Key features of the RoDTEP e-scrip:
- It is fully digital and maintained on ICEGATE
- It can be used to pay Basic Customs Duty on future imports
- It is freely transferable you can sell it to any importer if you don’t need it
Impact of RoDTEP on Key Export Sectors
- Refunds on dyes, chemicals and electricity help textile and apparel exporters offer better prices and improve export volumes.
- Agriculture exporters benefit through refunds on mandi tax and local levies that were previously non-refundable.
- Lower logistics and processing costs make marine products more competitive in the global market.
- Rebates on tanning chemicals, machinery and energy use reduce production costs for leather and footwear manufacturers.
- Cost savings on steel components, raw materials and electricity improve pricing power for engineering and auto component manufacturers.
The Real-World Challenges for Indian Exporters
Even though RoDTEP brings financial benefits, many exporters struggle to actually receive them. Below are some of the common challenges exporters face today.
Lack of Digital Tools for Documentation
Many exporters still rely on manual paperwork and email follow-ups. Without a proper digital system, documents like eBRC, invoices, and shipping bills get scattered across teams. This delays RoDTEP claims and increases compliance risks. A central digital file system can solve most of these issues but adoption is still low among MSMEs and service exporters.
Confusion Over Eligibility
Many exporters are still unsure about who can actually claim RoDTEP. The scheme is meant only for goods, but some businesses still believe service exports may qualify. At the same time, several manufacturers and merchant exporters miss out on benefits because they are unsure whether their HS Code is covered or whether documentation is sufficient. This lack of clarity leads to hesitation, under-claiming, or incorrect filings.
Errors in the Shipping Bill
A major reason for rejection under RoDTEP is a missing declaration in the shipping bill. Exporters often fail to clearly state that they are opting for RoDTEP during submission. Once the shipping bill is filed without this declaration, the benefit cannot be added later. Even a minor mistake such as a wrong HS Code or incomplete details can block the refund.
Delays in Ledger Credit
Even after all documents are filed correctly, some exporters face delays in receiving e-scrips on ICEGATE. These delays usually occur when the eBRC is not uploaded on time, the invoice format doesn’t match customs requirements, or the shipment is held for additional verification by customs. Lack of visibility into the claim status makes tracking difficult for smaller businesses.
Currency Exchange Losses
Exporters often face losses while receiving international payments due to unfavourable currency conversion rates, bank charges, or settlement delays. When such losses occur, it reduces the overall benefit of RoDTEP. Optimising your payment method and settlement currency is just as important as claiming the refund itself.
How Razorpay Helps Exporters Manage Operations While Waiting for Incentives
RoDTEP benefits take time to reflect, and compliance processes often slow down cash flow. Razorpay bridges this gap by enabling exporters to continue business smoothly without waiting for refunds. It ensures faster payments, fewer errors, and complete compliance while exporters focus on production and shipping.
Seamless International Payment Collection
Razorpay allows exporters to collect payments from 180+ countries and 130+ currencies using multiple methods such as international cards, Apple Pay, PayPal, Google Wallet, SWIFT transfers, and bank transfers. This ensures that payments are not delayed due to limited options, improving cash flow while RoDTEP credits are still pending.
No Currency Losses with Real-Time Forex Rates
Currency conversion losses reduce export profits. Razorpay’s MoneySaver Export Account helps exporters receive payments at live Google forex rates with zero markup, allowing them to retain more margin on every transaction. It also provides complete transparency on charges, preventing unexpected costs when funds are repatriated to India.
One Platform for Every Export Model
Razorpay supports multiple export business models including e-commerce exports, B2B shipments, Amazon Global sales, and direct client billing. Exporters do not need multiple payment accounts or plugins. Instead, a single dashboard manages all international collections, allowing businesses to save time and reduce operational dependency. This helps exporters focus on manufacturing, fulfilment, and RoDTEP documentation instead of juggling multiple payment tools.
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FAQs
1. What is the RoDTEP scheme in simple terms?
The RoDTEP scheme is a government initiative that refunds the taxes and duties you silently pay while exporting taxes that don’t show up on invoices and cannot be claimed under GST.
2. Can freelancers or service exporters claim RoDTEP?
Only exporters who file a shipping bill and follow standard customs procedures can claim RoDTEP.
3. What industries are covered under the RoDTEP scheme?
Most major export sectors are included textiles, engineering goods, agriculture, chemicals, pharmaceuticals, e-commerce, and more. Coverage depends on the HS Code notified under Appendix 4R.
4. Which sectors are currently excluded from RoDTEP?
RoDTEP benefits cannot be claimed for products under export restrictions or prohibitions, deemed exports, or goods manufactured in bonded warehouses.
5. How long will the RoDTEP scheme be in effect?
The government has extended the RoDTEP scheme, and it will now remain applicable on exports up to 31 March 2026.
