By Sharda Associates | CA Firm, Bhopal, Madhya Pradesh, India
You Export Goods and Your Margins Are Getting Squeezed—RoDTEP Is Money You Are Probably Leaving on the Table
Sharda Associates is a CA firm in Bhopal, Madhya Pradesh, India. Our CA team works with exporters across India on their financial documentation, project reports, CMA Reports and feasibility reports for export business loan applications. Every week we meet exporter clients who are losing money they are entitled to recover, simply because nobody told them about RoDTEP and how to claim it correctly.
If you are a manufacturer or trader of goods and export them out of India — there are hidden taxes embedded within your production cost. Electricity duty charged for the power you used to make the product. Mandi Fees on Raw Material You Procure. Fuel taxes in your transport bill. These costs are not reimbursed through GST. They are built into your product price and make you less competitive with foreign suppliers who do not have these burdens.
RoDTEP is to give that money back to you. It’s not a bonus or an incentive. It’s a rebate of what you’ve already paid. And saying it costs nothing but a statement on your shipping bill that most exporters are not doing.
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What RoDTEP Is and How It Works
RoDTEP is an acronym for Remission of Duties and Taxes on Exported Products. It is a government scheme that refunds embedded taxes to the Indian exporters—taxes paid during the production but not recovered through any other mechanism, including GST. The refund will be given as an electronic credit scrip on the ICEGATE portal, which can be used to pay customs duty or transferred to another importer.
RoDTEP had replaced the earlier MEIS scheme in January 2021. The MEIS was challenged at the World Trade Organization on the ground that it gave exporters additional incentives beyond tax recovery, which was in violation of the global trade rules. RoDTEP was a WTO-compliant scheme from the outset. It refunds only taxes actually paid and not otherwise recovered. Nothing more. What the exporter paid for it.
The 2026 Updates You Must Know
Government extends RoDTEP for 6 months till September 30, 2026 Benefits to all eligible export products will be provided at the existing rates under Appendices 4R and 4RE between April 1 and September 30, 2026.
It is worth mentioning that the Trade Notification No. 15/2026-27 dated 30 April 2026, effective from 1 May 2026, brought about some major changes—142 new tariff lines were inserted in Schedules 4R and 4RE, and 50 tariff lines were deleted, apart from revisions in rates and value caps for various product categories, including food items, herbal extracts, and chemicals. If you haven’t already looked up your HS Code rate under the May 2026 updated schedule, do it now. Maybe the rate for your product has changed. er the May 2026 updated schedule — do it now. The rate for your product may have changed.
How the Credit Scrip Works in Practice
The goods should have physically left India and you should have filed your Export General Manifest. The ICEGATE system generates an electronic scrip once you export goods and declare your RoDTEP claim in the shipping bill. This scrip is reflected in your ICEGATE account. You can use it to pay the basic customs duty on your own imports or sell the credit to another importer who has customs duty to pay. Both options turn the refund into real money for your business.
Refund rate varies with HS Code – it is generally 0.5 percent to 3 percent of the FOB value of your exports. That is Rs.1 lakh per month collected against Rs.1 crore of exports per month at the rate of 1 per cent. Rs. 12 Lakh per annum. For most small and medium exporters, that’s simply money that is being left on the table.
Who Is Eligible for RoDTEP
Manufacturer exporters and Merchant exporters are eligible. There is no minimum turnover clause A small exporter exporting Rs.10 lakh per month and a large exporter exporting Rs.100 crore per month can avail of the scheme on the same terms. Strict requirements are only a valid IEC — Import Export Code — and goods of Indian origin.
Who Is Eligible
RoDTEP can be claimed by any business registered as an exporter with a valid IEC, exporting goods manufactured or processed in India. This includes sole proprietorships, partnerships, private limited companies and LLPs. New exporters are eligible from their first export consignment.
Domestic Tariff Area exporters claim under Schedule 4R. Special Economic Zone units, Export Oriented Units, and Advance Authorisation holders claim under Schedule 4RE at separate rates.
Who Cannot Claim
Exporters of services — RoDTEP covers only goods. Steel, pharmaceutical, and chemical exporters are currently excluded from coverage — these sectors are under review for future inclusion.
Exporters already claiming duty benefits on the same goods under Advance Authorisation Scheme or Duty-Free Import Authorisation cannot claim RoDTEP on the same export — to prevent double claiming of benefits.
Re-exported foreign goods are not eligible. The goods must have Indian origin.
Quick Eligibility Table
| Condition | Eligible | Not Eligible |
| Type of Exporter | Manufacturer or Merchant | Service exporter |
| Origin of Goods | Indian origin | Re-exported foreign goods |
| IEC Status | Valid and active | Lapsed or cancelled |
| Product Sector | Most manufactured goods | Steel, pharma, chemicals |
| Other Benefits | Not claiming on same export | Claiming AA or DFIA on same goods |
| Turnover | No minimum required | No restriction |
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Documentation Required for RoDTEP Claims
The RoDTEP claim process is entirely digital and built into the export shipping bill. There is no separate application form. No offline submission. The declaration happens at the time of filing the shipping bill — and if it is not done then, it cannot be done retroactively for that consignment.
The Documents That Must Be in Order
Shipping Bill with RoDTEP Declaration — This is the most critical step. Your CHA — Customs House Agent — or your own export documentation team must tick the RoDTEP declaration in the shipping bill at the time of filing. No declaration means no credit, even if your product and your business are fully eligible. This is the single most common reason eligible exporters receive nothing under this scheme.
Valid IEC — Your Import Export Code must be active. An expired or suspended IEC invalidates the claim. Check your IEC status on the DGFT portal before each export shipment.
GST Registration and Returns — You must be a registered GST taxpayer with filed returns. ICEGATE verifies GST compliance as part of the scrip generation process. Businesses with pending GST returns may find their credits held.
Export General Manifest — Filed by your shipping line or airline after the goods physically depart India. The EGM is what triggers the system to process your credit. Without a filed EGM, the scrip is not generated.
Bank Realisation Certificate or eFIRC — Confirming that export proceeds were received in foreign exchange. This is required for final settlement. The government has issued clarification that benefits may still be considered in specific cases of short realisation of export proceeds — cases where the full payment was not received due to genuine trade reasons.
What to Tell Your CHA Right Now
If you use a Customs House Agent to handle your shipping documentation, send them a message today confirming that every export shipment must carry the RoDTEP declaration in the shipping bill. Many exporters assume their CHA is already doing this. Many CHAs assume the exporter has not opted into the scheme. This communication gap is costing Indian exporters crores every month in unclaimed credits.
At Sharda Associates our CA team helps export businesses structure their complete financial documentation — including the Project Reports and CMA Reports banks require for export working capital loans, pre-shipment credit, and term loans. We also prepare Feasibility Reports for exporters setting up new manufacturing capacity. Starting at Rs.2,999, delivered in 24 to 48 hours. Call +91 89899 77769.
Conclusion
RoDTEP is not a complicated scheme. It is a refund of taxes you already paid — given back to you through a digital credit that you can use or sell. The only action required is a declaration in your shipping bill at the time of export.
The exporters who are claiming it every month are recovering lakhs annually without any additional cost, effort, or risk. The exporters who are not claiming it are simply giving that money away — to no one’s benefit except the government’s unspent export budget.
Check your HS Code rate on the DGFT portal. Confirm with your CHA that the declaration is in every shipping bill. And if your export business needs bank finance — pre-shipment credit, working capital, or a term loan for expanding capacity — our CA team at Sharda Associates prepares the complete documentation that gets those applications approved. Call or WhatsApp +91 89899 77769 Get Your Feasibility Report →
Frequently Asked Questions
1. What is RoDTEP in simple language?
RoDTEP is a government scheme that refunds to Indian exporters the taxes they paid during production—electricity duty, mandi fees, and fuel taxes—which are not recovered through GST. The refund comes as an electronic credit scrip usable for paying customs duty or transferable to another importer.
2. What is the difference between RoDTEP and MEIS?
MEIS gave exporters additional incentives beyond tax recovery, which the WTO ruled as trade-distorting subsidies. RoDTEP only refunds actual taxes paid and not otherwise recovered — making it WTO-compliant. RoDTEP replaced MEIS from 1 January 2021.
3. What is the RoDTEP rate and how much will I actually receive?
Rates vary by HS code of your product, ranging from approximately 0.5 percent to 3 percent of FOB export value under the May 2026 updated schedule. Your specific rate is listed under Appendix 4R on the DGFT portal against your product’s HS Code. Check this for your specific product before estimating benefits.
4. Is RoDTEP still valid in 2026?
Yes. The scheme has been extended to September 30, 2026 with all eligible export products continuing to receive benefits at existing rates under Appendices 4R and 4RE.
5. Can small exporters with low turnover claim RoDTEP?
Yes. There is no minimum turnover or shipment value requirement. A business exporting Rs.5 lakh per month and a business exporting Rs.50 crore per month access the scheme on exactly the same terms. The rate and eligibility depend on the product HS Code, not the exporter’s size.
6. What happens if I forget to declare RoDTEP in the shipping bill?
The credit is permanently forfeited for that consignment. The declaration in the shipping bill must be made at the time of filing — it cannot be added or corrected after the bill is submitted. This is the most common and most costly mistake in RoDTEP compliance.
7. Who files the RoDTEP declaration — me or my CHA?
Your CHA files the shipping bill on your behalf. But it is your responsibility to confirm with your CHA that the RoDTEP declaration is included in every eligible shipment. Many exporters have been losing this credit for years because neither party confirmed who was responsible for this specific step.
8. Are pharmaceutical and steel exporters eligible for RoDTEP?
Not currently. Steel, pharmaceuticals, and chemicals are excluded from RoDTEP coverage as of 2026. These sectors are under review for potential future inclusion. Exporters in these categories should monitor DGFT notifications for updates.
9. How long does it take for the RoDTEP credit scrip to appear?
Credits typically appear on ICEGATE within 2 to 4 weeks after the shipping bill is filed and the Export General Manifest is processed. The EGM — confirming the goods physically departed India — is the trigger for scrip generation.
10. Can I sell my RoDTEP credit scrip if I do not import anything?
Yes. RoDTEP scrips are freely transferable. If your business does not import goods and has no customs duty to pay, you can sell the scrip to any importer who needs it. This converts the credit into direct cash for your business.
