India's export scenario has seen a sea of change with the launch of the RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme. Effective from January 1, 2021, the scheme aims at making Indian exports competitive in the international market by compensating exporters for some taxes and duties that were otherwise non-refundable.
What is the RoDTEP Scheme
The RoDTEP Scheme is a government program with the objective of refunding embedded taxes and duties that are not refundable under any other system, i.e., GST or customs duty drawback. These are:
Central and state taxes on fuel
Mandi tax
Stamp duty on export documents
Electricity duties
Embedded labor welfare contributions
The program ensures WTO-compatible assistance to Indian exporters, replacing previous schemes such as MEIS (Merchandise Exports from India Scheme) that were found incompatible with international trade rules.
Objectives of RoDTEP
Enhance Export Competitiveness
Through refunding embedded taxes, the program reduces the cost of exports, which results in improved price competitiveness in international markets.
Ensure WTO Compliance
RoDTEP conforms to international trade regulations by giving support in an equitable and transparent manner.
Benefit MSMEs and Labor-Intensive Industries
The scheme gives prominence to sectors that are job-intensive and have a high export basket contribution to India.
Major Features of RoDTEP
Digital Refunds: The refunds are made through transferable duty credit scrips in the form of an electronic credit ledger that is held by the customs portal.
No Separate Application: The scheme is within the Shipping Bill itself. Exporters are required to declare intention at export.
Customs-Based Implementation: RoDTEP is administered via the ICEGATE portal and interfaced with Electronic Credit Ledger (ECL).
Sectoral Coverage: So far, thousands of products are included under RoDTEP, as per product-wise rates notified by the DGFT (Directorate General of Foreign Trade).
Eligibility Criteria
To get the benefit under RoDTEP:
The exporter should be Indian-registered and complying with customs regulations.
The exporting product should be included under the notified RoDTEP list.
The intent for availing RoDTEP has to be declared by the exporter in the shipping bill while exporting.
Advance Authorization/EOU/SEZ units can be prohibited, subject to government notifications.
Process to Avail RoDTEP Benefits
Submit the Shipping Bill with a declaration for the RoDTEP claim.
Check that Electronic Bank Sure Certificate (E-BBC) is uploaded for related exports.
See ROTAP -Credit laser on the Issgate portal.
Use the credit scrips to discharge Basic Customs Duty or assign them to other importers/exporters.
Advantages to Exporters
Lower export cost resulting in improved prices and margins.
Transparent and computerized refund procedure, avoiding delays and corruption.
Competitiveness at the global level as a result of reduced effective tax incidence.
Restrictions and Challenges
Exclusion of industries such as SEZs and EOUs from the initial phase has been criticized.
Late notification of rates and procedural changes caused confusion.
System glitches on ICEGATE have occasionally halted credit flow.
Recent Updates
As of 2025, the government has widened the RoDTEP scheme to cover more sectors such as chemicals, iron & steel, and engineering goods. Exporters are requested to remain updated with DGFT notifications and ICEGATE releases regarding latest rates and processes.
Conclusion
The RoDTEP scheme is an important milestone towards assisting Indian exporters in a globally compliant fashion. By refunding erstwhile non-recoverable taxes in a structured manner, it enhances profitability for the exporter while also helping make Indian exports more competitive in overseas markets.
With professional guidance from sites such as e-Startup India, exporters can streamline the process, stay clear of compliance traps, and receive their due refunds in time.
