A short note on currency: RoDTEP rates, eligible sectors, and the scheme's validity period are revised periodically by the DGFT through official notifications. The figures and lists below explain how the scheme works; for the rates and eligibility that apply to your specific product today, always check the latest DGFT Appendix 4R / 4RE and notifications before filing a claim.

What is the RoDTEP scheme?

An Indian exporter's final price carries more tax than the invoice shows. Fuel duty on the transport, electricity duty on the factory, stamp duty on the paperwork: layers of embedded tax that quietly raise the cost of the goods leaving the port. RoDTEP exists to refund exactly those hidden costs.

RoDTEP stands for Remission of Duties and Taxes on Exported Products. It launched on 1 January 2021 as the successor to the earlier Merchandise Exports from India Scheme (MEIS). Its purpose is to give exporters a comprehensive refund of the embedded duties and taxes that existing export incentive schemes were not offsetting, covering levies at the central, state, and local levels, and so lowering the cost of exported goods.

Crucially, RoDTEP covers not just the duties an exporter pays directly, but the indirect taxes accumulated at earlier stages of making the product. It is also designed to be WTO-compliant, which is part of why it replaced the older incentive schemes.

What RoDTEP refunds

The scheme is meant to compensate exporters for embedded taxes that previously stuck to the product with no way to reclaim them. These typically include:

• Value Added Tax (VAT) and excise duty on the fuel used for transport borne by the exporter.
• Electricity duty on the purchase of electricity.
• Mandi tax, municipal tax, and property taxes.
• Stamp duty on export documents.

The common thread is that these are indirect, embedded costs, not something a GST refund or drawback already returns. Refunding them is what brings the true cost of an exported product down.

Who is eligible for RoDTEP?

Broadly, exporters of eligible goods that are manufactured in and exported from India can benefit, and there is no turnover threshold to claim. Both manufacturer exporters and merchant exporters (traders) can be covered, and the goods must have India as their country of origin.

A few important points on scope:

• E-commerce exports count. Goods exported through e-commerce platforms via courier are covered.
• Some sectors are excluded. Certain sectors have historically been outside the scheme; pharmaceuticals, steel, and organic and inorganic chemicals are commonly cited exclusions. The eligible and excluded lists are reviewed and revised by the government over time, so this is one of the areas to verify against the current DGFT list rather than assume.
• Registration is required. Claimants generally need to be registered with the DGFT, with a valid IEC and ICEGATE registration to receive and use the benefit.

You must opt in on the shipping bill. It is mandatory to declare on the shipping bill whether you intend to claim RoDTEP on the export items. This declaration defaults to "No," meaning no claim is made unless you actively select to claim it. Missing this step is a common and avoidable way to lose the benefit.

Because eligibility (including whether SEZ units, EOUs, and Advance Authorisation holders are covered, and for which periods) has changed through successive notifications, treat the above as how the scheme is structured and confirm your specific eligibility on the DGFT portal before filing.

How RoDTEP benefits are issued

RoDTEP benefits are not paid as cash. They are issued as transferable duty credit e-scrips.

Here is how that works in practice:

• The benefit is granted as a duty credit e-scrip, which can be used to pay Basic Customs Duty.
• These e-scrips are transferable to any other party that holds a valid IEC and ICEGATE registration.
• The e-scrips are maintained and tracked electronically through the customs system, so you can monitor their status online rather than chasing paperwork.

Transferability is what gives the e-scrips practical value: an exporter who cannot fully use the credit against their own customs duty can transfer it to another registered exporter who can.

Advantages of the RoDTEP scheme

For Indian exporters, RoDTEP does more than return a few taxes. Its main advantages:

• Greater global competitiveness. Reducing the embedded tax burden lets exporters price more competitively abroad, which helps win buyers and expand market share.
• WTO compliance. The scheme is designed to align with WTO trade norms, which gives it a more durable footing than the schemes it replaced.
• A simplified, automated process. RoDTEP is built to run through the automated customs system, reducing manual effort in claiming.
• Encourages export diversification. By lowering financial barriers, it makes it easier for exporters to broaden their product range and enter new markets.
• Supports economic growth. A stronger export sector feeds economic expansion and increases the foreign exchange earnings that build national reserves.

Together these align the scheme with the government's broader Atmanirbhar Bharat (self-reliant India) and Make in India goals: by easing the tax burden on exporters, RoDTEP aims to make Indian goods more competitive while supporting the wider economy.