The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is a government initiative designed to refund embedded, non-recoverable taxes and duties that are incurred in the production and distribution of exported goods. Introduced on January 1, 2021, RoDTEP replaces the MEIS (Merchandise Exports from India Scheme) and aims to enhance India’s global export competitiveness.
Why RoDTEP?
🔹 Replaces the MEIS scheme (withdrawn as per WTO ruling).
🔹 Reimburses non-GST and non-refundable taxes & levies paid on exported goods.
🔹 Encourages exports by reducing hidden costs.
🔹 Makes Indian products globally competitive.
📌 Ideal For: All exporters of goods falling under notified HS codes.
Key Features of RoDTEP Scheme
✅ Refund of Embedded Taxes: Covers duties not refunded through other schemes, such as:
- Electricity duty
- Mandi tax
- Fuel tax on transport
- Stamp duty on export-related documents
- Embedded GST on raw materials
- Local body taxes and other uncredited levies
✅ Electronic Credit Mechanism:
- Refunds are issued as transferable duty credit scrips.
- These can be used for future duty payments or sold in the market.
✅ WTO Compliant: Unlike MEIS, RoDTEP follows World Trade Organization (WTO) guidelines, ensuring sustainability for Indian exports.
✅ Sector-Wide Applicability:
- Covers all export products, including previously ineligible ones like steel, chemicals, and textiles.
- Rates vary by product, typically between 0.3% to 4.3% of FOB value.
✅ Automated Processing via ICEGATE:
- Fully digital application and refund process through the Customs ICEGATE portal.
Eligibility Criteria for RoDTEP
✔ Manufacturer and Merchant Exporters can avail the scheme.
✔ Export must be done under free shipping bills (non-bonded, non-EOU).
✔ Goods should be manufactured in India.
Benefits of RoDTEP for Exporters
✔ Cost Reduction: Refund of hidden taxes lowers production costs.
✔ Enhanced Competitiveness: Helps Indian products compete in global markets.
✔ Boost for MSMEs: Small exporters benefit from easier refund processes.
✔ Increases Profit Margins: By reducing tax burdens, exporters gain higher profits.
2. Digital & Automated Refund Process
✔ RoDTEP credits are issued digitally in exporters’ ICEGATE accounts.
✔ Refunds are processed via electronic scrips (transferable & tradable).
✔ No human intervention, ensuring transparency & efficiency.
3. Eligibility for All Exporters
✔ Manufacturer and Merchant Exporters can avail the scheme.
✔ Export must be done under free shipping bills (non-bonded, non-EOU).
✔ Goods should be manufactured in India.
✔ Available for all goods exported under notified HS codes.
✔ Applies to both MSMEs and large exporters.
🚫 Exclusions:
🔹 Exports under Advance Authorization, DFIA, or EPCG are NOT covered.
RoDTEP Rates & Product Coverage
The DGFT periodically releases RoDTEP rates for different products. These rates vary based on:
✔ Product category & HS code
✔ Tax incidence on inputs
✔ Economic conditions & industry requirements
Latest RoDTEP Rates (Issued by DGFT)
| Product Category | HS Code | RoDTEP Rate (%) | |
|---|---|---|---|
| Cotton Yarn | 5205 | 3.80% | |
| Iron & Steel Articles | 7308 | 1.10% | |
| Leather Footwear | 6403 | 2.90% | |
| Pharmaceutical Products | 3004 | 2.50% | |
| Automobile Components | 8708 | 1.40% | |
| Chemicals | 3824 | 1.90% |
📌 Complete list of RoDTEP rates can be accessed on the DGFT website or through our expert assistance.
RoDTEP vs. MEIS: Key Differences
| Feature | RoDTEP | MEIS (Old Scheme) | |
|---|---|---|---|
| WTO Compliant | ✅ Yes | ❌ No (WTO ruled it non-compliant) | |
| Refund Type | Tax & duty remission | Direct financial incentives | |
| Credit Type | Digital scrips | Paper-based duty credit scrips | |
| Eligibility | Manufacturers & exporters | Manufacturers & exporters | |
| Refund Coverage | Non-GST taxes & duties | Incentive on FOB value | |
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📌 25+ Years of Experience in Export-Import Consultancy
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📌 Direct Coordination with DGFT, Customs & Banks
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RoDTEP is WTO-compliant and ensures fair, transparent tax refunds for exporters.
Pragati Exim Solution helps exporters maximize their RoDTEP benefits hassle-free!
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provides exporters with refunds on embedded taxes and duties that are not reimbursed through other mechanisms. The Directorate General of Foreign Trade (DGFT) has issued detailed rate schedules under Appendices 4R and 4RE, specifying the applicable rates for various export items.
Key Highlights:
- Appendix 4R: This appendix outlines the RoDTEP rates for exports from Domestic Tariff Area (DTA) units. The latest version, effective from October 10, 2024, includes updated rates aligned with changes in the Customs Tariff Act. Exporters can refer to this appendix to determine the applicable remission rates for their products.
- Appendix 4RE: This appendix details the RoDTEP rates for exports originating from units operating under Advance Authorization (AA), Export Oriented Units (EOU), and Special Economic Zones (SEZ). The rates, effective from October 10, 2024, are designed to ensure that exporters from these units receive appropriate duty remissions.
Accessing the Rate Schedules:
Exporters can access the complete and most recent RoDTEP rate schedules through the DGFT’s official website. These documents provide comprehensive details on the remission percentages and caps applicable to specific tariff items. Staying updated with these schedules is crucial for exporters to accurately calculate their entitlements under the RoDTEP scheme.
Important Considerations:
- Regular Updates: The DGFT periodically revises the RoDTEP rates to reflect changes in taxation and international trade dynamics. Exporters should regularly consult the DGFT website to stay informed about any updates or amendments to the rate schedules.
- Product Classification: Accurate classification of export products as per the Harmonized System (HS) codes is essential. Misclassification can lead to incorrect application of rates and potential issues in claiming benefits.
- Documentation: Maintaining meticulous records and documentation is vital to support claims under the RoDTEP scheme. This includes shipping bills, tax payment proofs, and other relevant export documents.
Maximize your RoDTEP refunds with Pragati Exim Solution! Contact us today for expert guidance and hassle-free claims.
Why Choose Pragati Exim Solution for RoDTEP Claims?
📌 25+ Years of Experience in Export Incentives
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📌 Direct Coordination with DGFT & ICEGATE
📞 Want to maximize your RoDTEP refunds? Contact Pragati Exim Solution today! 🚀
- 1 What is the purpose of RoDTEP?
- It refunds hidden, uncredited taxes and levies to reduce the cost of exports.
- 2 Is RoDTEP applicable to all products?
- No, some items like steel and pharmaceuticals are excluded. Check DGFT notifications for details.
- 3 Can RoDTEP be claimed along with Duty Drawback?
- Yes, RoDTEP is separate from Duty Drawback and both can be claimed
- 4 How is the RoDTEP refund amount calculated?
- It is calculated as a percentage of the FOB value of the exported goods.
- 5 What are RoDTEP duty credit scrips?
- They are transferable electronic credit notes used to pay import duties.
- 6 How can I check my RoDTEP refund status?
- You can track it via the ICEGATE portal under the RoDTEP section.
- 7 Can I use RoDTEP scrips to pay IGST?
- No, RoDTEP scrips can only be used for customs duty payments.
- 8 Is RoDTEP applicable for services exports?
- No, it applies only to physical goods exports.
- 9 How frequently are RoDTEP rates updated?
- The government periodically reviews and updates rates based on sector needs
- 10 10. How can Pragati Exim Solution assist exporters?
- We provide end-to-end support for documentation, compliance, and maximizing benefits.