The RoDTEP (Remission of Duties and Taxes on Export Products) scheme is the scheme under which the exporters get refund of duty and taxes involved in the price of Indian exports i.e. fuels excise, electricity duty, mandi levy and others that are not mentioned on the invoice but are included in the FOB price of export. Claim based and not an application based procedure, the claim for Remission is made on the shipping bill, the rate of which is fixed by DGFT through a notified schedule, which is percentage-wise on the value of the FOB price with a limit per unit basis, and the Remission is received as electronic duty scrips from ICEGATE.
RoDTEP Scheme: Key Facts at a Glance
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Question |
Answer |
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What does RoDTEP remit? |
Embedded taxes and duties not otherwise recovered — levies inside the FOB price that no other scheme refunds. |
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Which law governs RoDTEP? |
The FTP and DGFT notifications; rates are notified in Appendix 4R and Appendix 4RE of the Handbook schedule. |
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How is the benefit claimed? |
By declaring the RoDTEP claim on the shipping bill — there is no separate pre-registration or application. |
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How is the rate fixed? |
As a percentage of FOB value per tariff line, capped at a notified rupee amount per unit of quantity. |
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How is the benefit received? |
As an electronic RoDTEP duty scrip credited on the ICEGATE ledger, usable for customs duty payment. |
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Do rates change? |
RoDTEP rates and value caps can be periodically revised through notifications from the DGFT. The previous reductions in rates that had been made temporarily (like the 50% reduction in February 2026) have since been revoked. |
Legal Framework and Responsible Authorities
The RoDTEP scheme is governed by the Foreign Trade Policy. There are 2 appendices given in the form of notifications issued by DGFT. Appendix 4R includes export from domestic tariff areas. Whereas Appendix 4RE includes export from Advance Authorisation, EPCG, EOU and SEZ units. The notification for Appendix 4RE was issued on 1st May 2025. DGFT issues the rates, maximums etc. Whereas the claims are processed by CBIC and Customs. Claims can be made by mentioning in the shipping bill. Exporters will declare themselves eligible and upon validation of the consignment by customs, the scrip is generated. The scrips are generated against actual exports as per the electronic bank realisation certificate. The rates, maximums and negative lists are notified. It must be checked the latest text before making a claim.
Eligibility and Boundaries
- Merchandise exporters shipping from DTA units, and exporters operating under Advance Authorisation, EPCG, EOU or SEZ regimes, can claim under the respective schedule.
- The claim is self-declared on the shipping bill; no RCMC or separate application is a precondition for the remission itself.
- Export evidence: e-BRC serves as proof of export proceeds earned in foreign exchange.
- Sector-specific negative list: Certain sectors such as pharmaceuticals, steel and some chemical sectors are mentioned under negative list (the list can be amended by notifying). It is essential to check the latest text.
- Supplies to SEZ/EOU units from DTA, deemed exports, exports on Minimum Export Price and Export Duty basis and a few others do not come under this scheme.
- The scrip can be used for basic customs duty payment and is transferable under the prescribed conditions.
- Claim combinations — with duty drawback, other incentive schemes and GST refunds — follow the scheme's interplay conditions and should be verified before claiming.
Documents and Records for Claims
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Category |
Documents and records |
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Claim basis |
Shipping bill with the RoDTEP declaration; IEC active and particulars current |
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Realisation |
Electronic bank realisation certificate matching each shipping bill |
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Product mapping |
Tariff-line classification against the current Appendix 4R/4RE schedule entry, rate and cap |
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Scrip records |
ICEGATE ledger statements of scrip credits, usage and transfers |
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Retention |
Export invoices, declarations and correspondence retained for audit verification |
There is no application form to build — the working discipline is declaration accuracy, schedule verification and realisation matching.
Claim Process: Step by Step
- Verify the schedule: map each export product to its current Appendix 4R or 4RE entry, rate and cap before the shipment cycle.
- Declare on the shipping bill: ensure the RoDTEP claim declaration and correct tariff classification are carried on every shipping bill.
- Full realization: Realization of export proceeds and generation of e-BRCs against each shipping bill.
- Tracking of Scrips: Tracking of ICEGATE Ledger for scrips credited against realized exports.
- Application/Transfer: Application and/or transfer of Scrips as per stipulated conditions for payment of customs duty.
Matching & Explanation: Matching of claims with schedule and realization. Explanation with documents for queries, discrepancies and audits.
Benefits and Limitations
- Refunds of hidden costs - refunds will include embedded duty that cannot be recovered through input credit/drawback arrangements.
- Marginally improves pricing - the benefit can be included within pricing.
- No administration involved - refunds are based on a shipment invoice. There is no need to register for the scheme.
- The benefit has a maximum rate - This changes when notified. For example – the rates were reduced to half in 2026 during the rationalisation process.
- The benefit will only apply if the realise has proceeds - If the proceeds are not realised or delayed on export then the refund cannot be claimed.
- Exclusion lists bind - a wrong tariff-line claim on an excluded item invites recovery and penal consequences.
RoDTEP and Related Remission Schemes
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Parameter |
RoDTEP |
Duty Drawback |
RoSCTL |
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Refunds |
Embedded, non-recoverable taxes |
Customs duty on imported inputs |
State and central levies on textiles |
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Basis |
% of FOB, schedule-capped |
% of FOB or value-cap per tariff item |
Prescribed rates for textile articles |
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Claim route |
Shipping-bill declaration |
Shipping-bill claim at export |
Shipping-bill declaration |
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Sector scope |
Merchandise exports per schedule |
All eligible exported goods |
Textiles and apparel |
The schemes refund different cost layers; interplay conditions determine what can be claimed together on the same shipment.
Compliance, Reconciliation and Disputes
Claims are audited after the fact, so the working discipline is reconciliation. Every shipping bill's declaration should be matched to the schedule entry, the e-BRC realisation and the scrip credit on the ICEGATE ledger, with variances investigated rather than absorbed — exporters who reconcile systematically retain most of their entitled value. Some common errors include wrong tariff line classification, claims on non allowable items, lack of realization and scrips not being reconciled. This will lead to a refund turning into a recovery notice. If there are issues raised by DGFT or customs such as demand notes or audit issues, then documentation will be required including the declaration, tariff line used in schedule, realization evidence and scrips. Rates and exclusions must be re-verified at each notification cycle — the exporter who claims on a stale schedule is the exporter who repays.
Risks and Common Mistakes
- Claiming on a stale schedule after a rate revision — including the 50% rationalisation applied from February 2026.
- Misclassifying the tariff line, claiming a rate the product's actual classification does not carry.
- Declaring RoDTEP on excluded categories - deemed exports, DTA supplies to SEZ and EOU units, or items on the exclusion list.
- Leaving realisation incomplete, so the e-BRC never anchors the shipping bill's claim.
- Credits appear on the ICEGATE ledger for unreconciled scrips
- Credits are left till year end to be reconciled
- Combinations of claims and drawback / other schemes treated as free of charge without ensuring conditions for interaction are met.
How SKMC Global Can Assist
- Advising on RoDTEP eligibility, schedule interpretation and tariff-line mapping against current notifications
- Building declaration discipline across the shipping-bill cycle so claims are accurate at source
- Reconciling claims, realisation and ICEGATE scrip credits, and investigating variances
- Handling queries, demand notices and audit objections with documentary representation
- Tracking schedule revisions, exclusion lists and interplay conditions before each claim cycle
- Advising on scrip utilisation and transfer within the prescribed conditions
The responsibility of remission schedules, claims verification and scrip creation lie completely with DGFT and customs. SKMC will give advice relating to these issues, as well as maintaining records and reconciling.
FREQUENTLY ASKED QUESTIONS
RoDTEP — Remission of Duties and Taxes on Export Products — refunds the embedded, non-recoverable duties and taxes built into an export's FOB cost, such as fuel excise, electricity duty and mandi levies, as a WTO-consistent remission.
No. The claim is made by declaration on the shipping bill itself. An active IEC and accurate tariff classification are what the claim needs — no RCMC or scheme enrolment is a precondition for the remission.
DGFT notifies a schedule — Appendix 4R for DTA exports and Appendix 4RE for exports by Advance Authorisation, EPCG, EOU and SEZ units — fixing a rate as a percentage of FOB value per tariff line, subject to a rupee cap per unit of quantity.
Yes. RoDTEP rate schedules and value caps are revised periodically via DGFT notifications. While a short-lived 50% benefit reduction was introduced on 23 February 2026 (DGFT Notification 60/2025-26), it was subsequently withdrawn and full rates were restored (Notification 66/2025-26). Exporters must always verify their entitlement against the active Appendix 4R/4RE schedule in force on the shipping-bill date.
As an electronic RoDTEP duty scrip credited against realised exports on the ICEGATE ledger, which can be used for payment of basic customs duty and transferred under the prescribed conditions.
Yes — the Appendix 4RE schedule, effective from 1 May 2025, extends remission to exports by units operating under these regimes, on the notified terms and exclusions.
Deemed exports, DTA supplies to SEZ and EOU units, exports subject to minimum export price or export duty, and items on the notified exclusion list — which has covered categories such as pharmaceuticals and steel in past schedules. Verify the current list before claiming.
The two schemes refund different cost layers — drawback returns customs duty on imported inputs, RoDTEP returns embedded taxes — but the interplay conditions prescribe what can be combined on one shipment. Verify the combination before declaring both.
Realisation evidenced by the electronic bank realisation certificate anchors the claim; where proceeds remain unrealised, the scrip credit is blocked and the claim stays incomplete until realisation is completed.
Incorrect declarations — wrong tariff line, excluded item or stale rate — invite recovery of the remission with interest and can attract penal action. Queries, demand notices and audit objections are answered with the declaration, schedule entry, realisation evidence and scrip accounting.