How the RoDTEP scheme works, which products are eligible, how rates are set, how to claim the rebate and how it differs from MEIS and RoSCTL.
The Rebate of Duties and Taxes on Exported Products (RoDTEP) scheme is the Indian government's flagship export incentive for goods shipped from 1 January 2021 onwards. It replaces the older MEIS (Merchandise Exports from India Scheme) and rebates duties and taxes that are "not otherwise refunded" under any other mechanism. This article explains how RoDTEP works in practice.
Why RoDTEP exists
The earlier MEIS scheme was challenged at the WTO as an export subsidy. India agreed to transition to a WTO-compliant scheme that rebates only "un-rebated" duties and taxes borne on exported products. RoDTEP is the result — designed to be neutral under WTO rules.
What RoDTEP rebates
RoDTEP rebates duties and taxes paid on inputs and at the export stage that are not otherwise refunded. This includes:
- Electricity duties.
- Mandi tax.
- Stamp duty on export-related documents.
- Fuel taxes embedded in transportation.
- Certain central and state levies on inputs.
It does not refund GST (which is already refunded through LUT/IGST refund), or customs duty on inputs (which is handled by Advance Authorisation or Drawback).
Which products are eligible?
The Department of Revenue notifies the RoDTEP schedule (Appendix 4RE of the Foreign Trade Policy). The list covers most HS chapters but with some exclusions:
- Most chapters 1–99 are covered, but at widely varying rates.
- Some chapters are excluded (e.g., certain mineral fuels, gold/diamond jewellery in some cases).
- Rates differ by HS code (8-digit), not by exporter category.
Rates are reviewed periodically and can change with each notification.
How the RoDTEP rate is expressed
Rates are expressed as a percentage of FOB value (with a cap on per-unit amount in some cases):
``` RoDTEP amount = Rate (%) × FOB value (capped where applicable) ```
For example, a rate of 1.5% on an FOB value of INR 10,00,000 yields INR 15,000 as the rebate scrip value.
How to claim RoDTEP — step by step
- 1**Ship the consignment** under the proper shipping bill with the RoDTEP flag enabled.
- 2**Obtain the Let Export Order (LEO)** from customs.
- 3**Realise the export proceeds** in your bank account (within the RBI time limit).
- 4**File the RoDTEP claim** on the DGFT Common Digital Platform after LEO and realisation.
- 5**DGFT processes the claim** — issues RoDTEP scrips to the exporter's electronic credit ledger.
- 6**Use the scrips** — for payment of customs duties on imports, or transfer them to another exporter.
Time limits and realisation
- The export must be made on or after the RoDTEP start date (1 January 2021 onwards, with extensions).
- Foreign exchange realisation must happen within the time prescribed by RBI (typically 9 months for goods).
- Claims must be filed within 12 months of LEO (extendable in specific cases).
RoDTEP scrips — how to use
RoDTEP scrips are electronic credits in the exporter's DGFT ledger. They can be:
- Used to pay BCD on future imports (including capital goods).
- Transferred to another exporter through the DGFT transfer module.
- Used by the same exporter on subsequent imports.
Scrips carry an 18-month validity from the date of issue.
RoDTEP vs RoSCTL
RoSCTL (Rebate of State and Central Levies and Taxes) is a parallel scheme for textile exports. From 1 January 2021, textiles fall under RoSCTL, not RoDTEP. The two schemes should not be confused:
- **RoDTEP** — most non-textile exports.
- **RoSCTL** — textiles and apparel (chapters 50–63).
RoDTEP vs MEIS
| Aspect | MEIS | RoDTEP | |---|---|---| | Legal basis | FTP 2015-20 | FTP 2023 | | WTO status | Withdrawn (subsidy challenge) | WTO-compliant | | Coverage | Broad, by category | Specific HS codes | | Rate basis | FOB % by category | FOB % by HS code | | Scrip usage | Wide, including some GST | Customs duty only |
Common mistakes
- Forgetting to enable RoDTEP on the shipping bill — claim is denied.
- Filing the claim before realisation — rejected by DGFT.
- Misclassifying the HS code, leading to a lower (or higher) rate than expected.
- Not using scrips before the 18-month expiry.
- Assuming textiles fall under RoDTEP (they fall under RoSCTL).
FAQ
**Q: Can merchant exporters claim RoDTEP?** A: Yes. Merchant exporters with their own IEC and shipping bills can claim RoDTEP, subject to product eligibility and realisation.
**Q: Do RoDTEP scrips expire?** A: Yes. Scrips are valid for 18 months from the date of issue.
**Q: Is RoDTEP available for exports to all countries?** A: Yes, RoDTEP is not country-restricted. However, the rate is the same regardless of destination.
**Q: Can RoDTEP scrips be sold?** A: Yes. RoDTEP scrips are transferable through the DGFT platform.
Key Takeaways
- RoDTEP rebates un-refunded duties and taxes on exported products (not GST or customs duty).
- Rates are HS-code-specific and reviewed periodically.
- Claims require shipping bill flag, LEO and forex realisation.
- Scrips are valid for 18 months, transferable, and used for customs duty payment.
- Textiles fall under RoSCTL, not RoDTEP.
Blueroute Exim, as a Surat-based merchant exporter, structures shipments to maximise eligible incentive compliance. References available on request.