India trade reform news – update 1 - Practical guide to RoDTEP incentives for exporters

RoDTEP - The Remission of Duties and Taxes on Exported Products scheme is one of the most talked-about incentives for India’s exporters. Extended recently by the Government of India until March 31, 2026.

In this update, we’ll break down what RoDTEP actually is, how exporters can claim it, where it applies, practical timelines, typical challenges, and key resources you can use right now.

What Is RoDTEP? A practical definition

RoDTEP stands for Remission of Duties and Taxes on Exported Products — a WTO-compatible export support system that refunds embedded central, state, and local taxes/levies that are not otherwise remitted or refunded through other programmes like Duty Drawback.

Example of eligible embedded taxes include:

• VAT on fuel

• Electricity duty

• Mandi fees

• Stamp duty

• Certain GST components
  (Not all taxes are covered — see challenges section below.)

The rebate is not paid in cash — instead, exporters receive RoDTEP e-scrips (electronic duty credit) that can be used to pay basic customs duty, or sold/transferred to other IEC holders.

Important: You must declare RoDTEP intent when filing your shipping bill — if you forget this, you cannot add it later.

 Step by Step guide -  How RoDTEP works (Practical Process as per our experience)

1. Shipping Bill Declaration
   While filing your export Shipping Bill via the DGFT/ICEGATE system, select RoDTEP as a claim.

2. Customs Verification
   Once the goods are shipped, Customs verifies details digitally.

3. RoDTEP Credit Allocation
   If approved, the rebate is credited to your ICEGATE electronic ledger as an e-scrip.

4. Use or Transfer
   You can use these scrips to pay future basic customs duty on imports — or transfer/sell them to other businesses.

Tip: These e-scrips have a validity and compliance timeline tied to export realisation and usage - so plan their use within fiscal timelines.

Useful Indian government portals and websites link are as below -
ICEGATE — https://www.icegate.gov.in (to track e-scrip credits and status).

Timeline & recent policy changes

The scheme was first implemented on 1 January 2021 as a successor to MEIS to comply with WTO norms.

Recent Developments in it

• The RoDTEP scheme was temporarily paused for Advance Authorisation (AA), SEZ, and EOU exports earlier in 2025, causing uncertainty.

• It was reinstated for AA/SEZ/EOU exporters effective 1 June 2025 via DGFT notification.

• The scheme has currently been extended until March 31, 2026, providing continuity and giving exporters pricing predictability.

Export Coverage:
RoDTEP now covers over 10,000 HS tariff lines for goods exported from domestic tariff areas and similar numbers for AA/SEZ/EOU sectors.

Who can claim RoDTEP?

Eligible exporters include:

• Manufacturer exporters

• Merchant exporters

• MSMEs with valid IEC

• Goods exported from Domestic Tariff Area (DTA), AAs, SEZs, EOUs (subject to policy timing)

Not eligible:

• Service exports (use SEIS or other schemes)

• Transhipments and goods under certain exemptions.

Incentive Value — What to Expect

RoDTEP rates vary by HS Code and are notified by DGFT in the Appendix 4R. Typical rebate rates range between 0.3% and 4.3% of the FOB value of exports.

Example:
If you export ₹10 lakh worth of goods with a 3% RoDTEP rate, you can receive ₹30,000 as a duty credit e-scrip — usable for customs duty or sale.

Real Challenges Exporters Face

Despite the benefits, exporters consistently report operational hurdles:

• Delays in E-scrip Credit - Delays in customs crediting RoDTEP can block working capital — a big issue for MSMEs.

• Documentation Complexity - Confusion over shipping bill entries (if RoDTEP is not properly declared, you lose eligibility) is common.

• Eligibility & Sector Variations - Different products receive different rates, and some categories receive limited support, leaving exporters uncertain about pricing.

• Annual Return Compliance - Exporters must file Annual RoDTEP Returns on DGFT within prescribed timelines — gathering detailed tax cost data (transport, electricity duty, etc.) is proving painful and retroactive.

• Low Awareness - Many SMEs and new exporters are unsure about how to claim or track RoDTEP claims — leading to missed incentives.

An example — A small exporter’s workflow

Let’s say you export leather accessories:

1. Generate Shipping Bill via ICEGATE and select RoDTEP claim.

2. Customs verifies your export and HS code.

3. After export, RoDTEP e-scrip of 2.5% is credited to your ICEGATE ledger.

4. Use this e-scrip to pay customs duty on an imported machine part next quarter.

5. File your Annual RoDTEP Return on DGFT portal by the deadline to keep eligibility active.

If any step is done incorrectly (wrong declaration, missing eBRC upload, late annual return), your RoDTEP rebate can be delayed or rejected — so operational accuracy matters.

Key Resources for Exporters

DGFT – Foreign Trade Policy & Notifications - https://www.dgft.gov.in

ICEGATE – E-scrip Ledger & Export Filings - https://www.icegate.gov.in

Engineering Export Promotion Council FAQs (RoDTEP handbook & HS code rates)
 - https://eepcindia.org/backend/export-benefits

Annual Return Guidelines (DGFT portal) - Accessible through DGFT dashboard (login required). Check deadlines annually.

What Exporters Should Do Now

Always declare RoDTEP at Shipping Bill stage.
Check if your HS code is covered and rate is correctly applied.
Track your RoDTEP e-scrips on ICEGATE.
File your Annual Return before the deadline.
Plan usage of e-scrips for customs duty or transfer/sale.

RoDTEP is more than just an incentive — it’s a cost-neutralizing tool that can significantly improve competitiveness if managed accurately. Understanding both the policy and the operational steps makes the difference between claiming benefits and losing them due to errors.

You can mail us at logisticswall2311@gmail.com for any case - based guidance. Please follow us for further updates.