RoDTEP Scheme (Remission of Duties and Taxes on Exported Products)

What is RoDTEP?

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is the flagship export promotion scheme of the Government of India, introduced with effect from 1st January 2021. It replaces the earlier MEIS (Merchandise Exports from India Scheme) which was found to be WTO-incompatible. RoDTEP is fully WTO-compliant as it only remits taxes and duties embedded in the cost of exported goods that are not rebated through any other mechanism.

What Does RoDTEP Remit?

RoDTEP rebates a range of taxes and levies incurred during the production and distribution of exported goods, including:

  • Central and State taxes on fuel (electricity, coal, petroleum) used in manufacturing
  • Mandi tax and other agricultural produce market committee (APMC) levies
  • Stamp duty on export documents
  • State and local taxes, levies, and cess on goods used in production

How Does RoDTEP Work?

RoDTEP benefits are credited electronically as Duty Credit Scrips in the exporter's ICEGATE account, directly based on the Shipping Bill. The scrips can be used for payment of Basic Customs Duty on imports or transferred to other importers. The rates are product-specific and are notified by the DGFT in the Appendix 4R of the Handbook of Procedures.

Our RoDTEP Services

  1. Review of export product HS codes to determine applicable RoDTEP rates
  2. Verification of correct declaration on Shipping Bills for RoDTEP benefit
  3. Monitoring of RoDTEP credit generation in ICEGATE account
  4. Assistance in RoDTEP scrip utilisation or transfer
  5. Rectification of errors in RoDTEP declarations on Shipping Bills
  6. Advisory on combining RoDTEP with other incentive schemes (Advance Authorisation, Duty Drawback)

Frequently Asked Questions – RoDTEP

Q: Can RoDTEP be claimed along with Advance Authorisation?

Yes. RoDTEP can be claimed simultaneously with Advance Authorisation. However, Duty Drawback (AIR) and RoDTEP cannot be claimed simultaneously for the same product — you must choose one.

Q: Are SEZ exports eligible for RoDTEP?

No. Exports from Special Economic Zones (SEZs), EOUs, and Advance Authorisation holders (where duties on inputs are waived) are not eligible for RoDTEP as the embedded taxes are already zero or rebated.

Q: When are RoDTEP scrips credited?

RoDTEP scrips are credited to the exporter's ICEGATE account after the EGM (Export General Manifest) is filed and the Let Export Order is given. Most scrips are generated within 2–4 weeks of export completion.

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Frequently Asked Questions

What is an IEC (Importer Exporter Code) and why is it mandatory in India?

An Importer Exporter Code (IEC) is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India. It is the primary business identification number required for any person or business engaged in import or export of goods and services.

IEC is mandatory because no import or export can be made without it (unless specifically exempted under the Foreign Trade Policy). It is required for Customs clearance, DGFT scheme applications, and receiving or making foreign trade payments through banks.

What are the main documents required for import-export in India?

Key documents for import-export operations in India include:

  • Shipping Bill (for exports) or Bill of Entry (for imports) — filed with Customs for clearance.
  • Commercial Invoice cum Packing List — details of goods, quantity, value, and packaging.
  • Bill of Lading / Air Waybill — transport document issued by the carrier.
  • Certificate of Origin (COO) — certifies the country of origin, needed for FTA benefits and some import requirements.
  • IEC Code — the importer/exporter identification number.
  • GST Invoice / LUT — for GST compliance on exports.
  • FSSAI Certificate — for food and agricultural imports.
  • BIS Certificate / NOC — for products under mandatory BIS certification.

What does DGFT do and why is it important for importers and exporters?

The Directorate General of Foreign Trade (DGFT) is the apex government body under the Ministry of Commerce and Industry responsible for formulating and implementing India's Foreign Trade Policy (FTP). Its key roles include:

  • Issuing and managing Importer Exporter Codes (IEC)
  • Administering export incentive schemes: Advance Authorisation, EPCG, RoDTEP, RoSCTL, SEIS
  • Granting export licences for restricted and SCOMET items
  • Issuing import licences for restricted items
  • Recognising Star Export Houses (status holders)
  • Fixing Standard Input Output Norms (SION)

Every Indian exporter and importer must interact with DGFT at some point — whether for obtaining an IEC, applying for export incentives, or seeking licences for restricted goods.

How can I find out if my product requires a special import licence in India?

India's import policy is classified under the ITC(HS) Classification of Export and Import Items published by DGFT. Every item has an import policy designation:

  • Free: Can be imported without any licence.
  • Restricted: Requires a specific import licence from DGFT before import.
  • Prohibited: Cannot be imported under any circumstances (e.g., beef in some categories).
  • Canalised: Can only be imported by government-designated agencies.

You can check the policy on the DGFT website by your ITC(HS) code, or contact Samarth EXIM for a free preliminary import policy check for your specific product.

What is the difference between Advance Authorisation and EPCG scheme?

Both are export promotion schemes under India's Foreign Trade Policy, but they serve different purposes:

  • Advance Authorisation (AA): Allows duty-free import of raw materials and inputs that are physically used in manufacturing export goods. The export obligation is the value of goods exported. Applicable before production.
  • EPCG (Export Promotion Capital Goods): Allows duty-free import of capital goods (machinery, equipment, tools) used in production of export goods. The export obligation is 6 times the duty saved, over 6 years.

They can be used together — EPCG for capital goods and Advance Authorisation for input materials — giving double duty savings on both machinery and raw materials.

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