The government of India launched the scheme of RoDTEP to see that exporters are remunerated fairly for the non-documentary expenses on goods exported by them. Redemption of those taxes and duties that cannot be refunded otherwise is the purpose of RoDTEP, or remission of taxes and tariffs on export products. One of the significant compliance requirements under this scheme is the RoDTEP annual return that the exporters must submit so that they can continue receiving incentives. The scheme is regulated and administered by the Directorate General of Foreign Trade, or DGFT RoDTEP.
Introduction to the RoDTEP Scheme
The RoDTEP scheme was launched in January 2021 and replaced the MEIS (Merchandise Exports from India Scheme). It was a try to create a clean and WTO-approved refund system for exporters. It covers unrefunded levies and duties embedded in exported goods, such as taxes on fuel, electricity, and local charges.
These refunds are credited in the form of a RoDTEP license, which is issued electronically and can be used to pay basic customs duty or be transferred to another party.
Understanding RoDTEP Licenses
Every time an eligible product is exported, a benefit is calculated and issued as a RoDTEP license. These licenses are duty credit scrips that can be utilized to offset import duties. Since the value of these credits adds to an exporter’s bottom line, accurate documentation is crucial.
Each RoDTEP license is linked to specific shipping bills, and all the associated information must be disclosed while filing the RoDTEP annual return.
The Objective: Remission of Duties and Taxes on Exported Products
What is the RoDTEP Annual Return?
The RoDTEP annual return is a combined statement of all the RoDTEP licenses filed during a financial year. It includes the details of exports, license values, shipping bills, and HS codes.
This return helps authorities under DGFT RoDTEP to verify whether the benefits claimed are valid. It ensures there is no misuse or duplication in benefits, thus maintaining the integrity of the RoDTEP scheme.
Why Is It Mandatory?
All exporters who have claimed benefits under the program are required to file the RoDTEP yearly return. Failure to submit it may lead to license termination, benefit suspension, or possibly legal repercussions under the Foreign Trade Policy.
This filing requirement is part of the broader compliance mechanism under the remission of duties and taxes on exported products. It confirms that the exporter has followed all rules, claimed correct benefits, and has no discrepancies in their documents.
Applicability Criteria
1. Threshold of ₹1 Crore
o Any exporter (including merchant exporters) whose total RoDTEP claimed in a financial year (i.e. in shipping bills filed) equals or exceeds ₹1 crore, regardless of whether the actual benefit received is less, must file an ARR
2. HS‑Code‑Level ₹50 Lakh Threshold
o Once the ₹1 crore threshold is met:
- If any 8‑digit HS‑code’s claim is ₹50 lakh or above, you must file separate ARR for each such HS‑code
- If none of the HS‑codes reaches ₹50 lakh, file an ARR for the single HS‑code with the highest claim.
3. Merchant Exporters Included
o Merchant (trading) exporters are also subject to ARR if they benefit ≥ ₹1 crore, even if they coordinate with manufacturers to gather data
Filing Timeline & Penalties
You must file the ARR for a given financial year by:
- 31st March of the following year — without penalty
- A grace period till 30th June with a ₹10,000 composition fee.
- After June 30, filing is still possible with a ₹20,000 fee, but RoDTEP benefits are withheld until ARR is filed and the fee is paid
When and How to File
The annual return is typically due by June 30 following the financial year-end on March 31. Exporters must prepare detailed documentation that includes:
- A list of all exports made under the RoDTEP scheme
- Shipping bills and invoice references
- The corresponding RoDTEP license numbers and amounts
- Product-wise HS codes and values
- Summary of benefits claimed
All information must be filed digitally through the DGFT RoDTEP online portal, using a digital signature certificate.
Challenges in Filing
The company have faced many challenges while filing the return, especially for large exporters with high shipment volumes. Common challenges include:
- Mismatches between shipping bills and licenses
- Incorrect classification of HS codes
- Double claiming of benefits
- Non-tracking of RoDTEP licenses received
- Delay in gathering documentation
Exporters are advised to maintain an internal tracker of RoDTEP licenses, along with shipment-wise benefit records, to streamline the filing process.
Benefits of Timely Compliance
Filing the RoDTEP annual return on time ensures that:
- Exporters continue receiving RoDTEP licenses without interruptions
- There's no delay in DGFT approvals
- You avoid scrutiny or audits under suspicion of irregularities
- Your organization builds a clean track record under the DGFT RoDTEP monitoring system
Conclusion
The RoDTEP scheme plays a vital role in improving the export competitiveness of Indian businesses by reimbursing hidden duties and taxes. However, its benefits come with accountability. The RoDTEP annual return is a critical compliance requirement under the scheme, enabling DGFT to monitor usage and ensure transparent administration.
SKMC Global offers expert support through its experienced DGFT consultants and export documentation professionals. We specialize in RoDTEP license management with in-depth knowledge of rates and product eligibility. Our services are reliable, timely, and focused on compliance. With dedicated account support, we ensure a smooth experience from start to finish.