Do you know how much tax refund you're eligible for on your exports? Indian export values climbed to $778.21 billion in 2023-24, representing a 67% growth over the past decade. As more businesses export, knowing how to recover embedded taxes becomes critical to maintaining competitive pricing.
You're exporting goods from India and competing in global markets where every percentage point on pricing matters. You've paid taxes on fuel, electricity, warehousing, and logistics, but most of these don't get refunded through regular channels. That's where RoDTEP comes in.
In this guide, we break down in detail what the RoDTEP rates are, how they work, and how to find your specific rate. Let’s get started.
RoDTEP rates are the percentage of your export's FOB value that you can claim as a tax refund under the Remission of Duties and Taxes on Exported Products scheme. These rates are set by the Directorate General of Foreign Trade (DGFT) and published in official documents.
The rates currently range from 0.3% to 4.3% of your FOB value. This refund comes as an electronic duty credit (e-Scrip) that you can use to pay import customs duties or sell to other businesses. The rate for your specific product depends on your 8-digit Harmonised System (HS) code.
RoDTEP rates are determined based on the embedded central, state, and local duties and taxes that exporters pay but cannot recover through other refund schemes. The government calculates these rates by analyzing the actual tax incidence in production and distribution for each product category.
The DGFT assigns rates according to your product's 8-digit HS code. This ensures each product gets a specific rate reflecting its actual tax burden. The rate structure accounts for sector-specific costs that impact competitiveness.
Some products have value caps per unit in addition to the percentage rate. This means your refund cannot exceed a certain amount per kilogram, piece, or other unit of measurement, even if the percentage calculation would be higher. These caps prevent excessive claims and ensure the scheme stays within budget allocations.
To find your product's RoDTEP rate, you need to know your HS code and check the official DGFT schedules. Here's how to find your rate:
The DGFT portal updates these schedules whenever rates change, so checking before each export cycle ensures you're using the most up-to-date information.
Calculating your RoDTEP refund is simple once you know your rate and FOB value.
Use this formula: Refund Amount = FOB Value × RoDTEP Rate (%)
For example, if your FOB value is ₹10,00,000 and the RoDTEP rate for your product is 1.2%, your refund calculation is ₹10,00,000 × 1.2% = ₹12,000. This amount gets credited as an e-Scrip to your ICEGATE account after customs processing.
For businesses exporting multiple product lines, calculate separately for each HS code and add up your total refund. This helps you accurately estimate how much duty credit you'll receive and plan your working capital accordingly.
RoDTEP refunds the embedded taxes you've already paid but couldn't recover through GST input tax credit or other schemes. These are taxes that increase your product cost but remain hidden in your supply chain.
Here's what gets typically covered:
The scheme specifically targets taxes that are not refunded under GST or the Duty Drawback scheme, which means you can claim RoDTEP and Duty Drawback together for different tax components without any conflict.
Claiming RoDTEP benefits requires completing these steps before and during your export process.
Register on the ICEGATE portal using your Importer Exporter Code (IEC). Create your RoDTEP credit ledger account in the system where your e-Scrips will be credited after processing.
When filing your shipping bill, declare your RoDTEP claim by selecting "RODTEPY" in the scheme code field. This step is critical because you cannot claim RoDTEP retrospectively if you forget to declare it at the time of export. Verify your HS code is correct, and the system will automatically calculate your eligible refund based on the notified rates.
File the Export General Manifest (EGM) through your shipping line or airline. Customs will process your shipping bill and validate your claim automatically. Within 60 to 90 days, the e-Scrip gets credited to your ICEGATE RoDTEP ledger account. You'll receive a notification once the credit appears.
Log in to ICEGATE and view your available RoDTEP credits. You can use these credits to pay Basic Customs Duty on your imports by selecting the RoDTEP option during import bill filing. Alternatively, transfer the credits to another IEC holder who imports goods and needs duty credits.
Claiming RoDTEP benefits improves your margins. But you also need faster ways to collect international payments and manage cash flow effectively.
PayGlocal helps exporters collect global payments efficiently while staying compliant with all regulations. Here's how PayGlocal supports your export business:
PayGlocal helps you collect payments faster and settle in INR efficiently. Your international buyers pay easily, you get funds faster, and compliance stays automated.
RoDTEP rates directly impact your export competitiveness by refunding embedded taxes that would otherwise remain unrecovered. Finding your correct HS code, calculating your refund accurately, and declaring your claim in the shipping bill at the time of export ensures you capture these benefits without costly mistakes.
The scheme covers embedded taxes across your supply chain that increase your product costs in global markets. Combining RoDTEP benefits with efficient international payment collection gives you both better margins and better cash flow.
Ready to collect international payments faster in multiple currencies? Get started with PayGlocal today and scale your export business globally.
You're exporting goods from India and competing in global markets where every percentage point on pricing matters. You've paid taxes on fuel, electricity, warehousing, and logistics, but most of these don't get refunded through regular channels. That's where RoDTEP comes in.
In this guide, we break down in detail what the RoDTEP rates are, how they work, and how to find your specific rate. Let’s get started.
Key takeaways
- Rate structure: RoDTEP rates range from 0.3% to 3.9% of FOB value and are determined by your product's 8-digit HS code, with rates varying by sector and product category.
- Calculation method: The refund is calculated as FOB Value × RoDTEP Rate (%), with some products having value caps per unit that limit the maximum refund amount.
- E-Scrip usage: After processing, you receive an e-Scrip that can be used to pay import customs duties or transferred to other businesses for cash.
- Declaration requirement: You must declare your RoDTEP claim in the shipping bill using code "RODTEPY" at the time of export.
- Better payment efficiency: PayGlocal helps you collect international payments faster and settle in INR, improving your business cash flow.
What are RoDTEP rates?
RoDTEP rates are the percentage of your export's FOB value that you can claim as a tax refund under the Remission of Duties and Taxes on Exported Products scheme. These rates are set by the Directorate General of Foreign Trade (DGFT) and published in official documents.
The rates currently range from 0.3% to 4.3% of your FOB value. This refund comes as an electronic duty credit (e-Scrip) that you can use to pay import customs duties or sell to other businesses. The rate for your specific product depends on your 8-digit Harmonised System (HS) code.
How do RoDTEP rates work?
RoDTEP rates are determined based on the embedded central, state, and local duties and taxes that exporters pay but cannot recover through other refund schemes. The government calculates these rates by analyzing the actual tax incidence in production and distribution for each product category.
The DGFT assigns rates according to your product's 8-digit HS code. This ensures each product gets a specific rate reflecting its actual tax burden. The rate structure accounts for sector-specific costs that impact competitiveness.
Some products have value caps per unit in addition to the percentage rate. This means your refund cannot exceed a certain amount per kilogram, piece, or other unit of measurement, even if the percentage calculation would be higher. These caps prevent excessive claims and ensure the scheme stays within budget allocations.
How to find RoDTEP rates for your product?
To find your product's RoDTEP rate, you need to know your HS code and check the official DGFT schedules. Here's how to find your rate:
- Identify your HS code: Determine your product's correct 8-digit Harmonised System code from your existing export documents or the DGFT tariff classification database.
- Access the DGFT website: Visit the DGFT website and look for the latest RoDTEP rate-related notifications (Appendix 4R for regular exports or Appendix 4RE for SEZ, EOU, or Advance Authorization exports).
- Locate your product: Find your HS code in the official rate list and note both the percentage rate and any value cap mentioned for your product category.
- Verify HS code accuracy: Cross-check that your HS code matches your product exactly, as even similar products can have different rates based on their classification.
The DGFT portal updates these schedules whenever rates change, so checking before each export cycle ensures you're using the most up-to-date information.
How to calculate your RoDTEP refund?
Calculating your RoDTEP refund is simple once you know your rate and FOB value.
Use this formula: Refund Amount = FOB Value × RoDTEP Rate (%)
For example, if your FOB value is ₹10,00,000 and the RoDTEP rate for your product is 1.2%, your refund calculation is ₹10,00,000 × 1.2% = ₹12,000. This amount gets credited as an e-Scrip to your ICEGATE account after customs processing.
For businesses exporting multiple product lines, calculate separately for each HS code and add up your total refund. This helps you accurately estimate how much duty credit you'll receive and plan your working capital accordingly.
What taxes does RoDTEP refund?
RoDTEP refunds the embedded taxes you've already paid but couldn't recover through GST input tax credit or other schemes. These are taxes that increase your product cost but remain hidden in your supply chain.
Here's what gets typically covered:
- VAT and excise on fuel: Taxes on diesel and petrol used in manufacturing and transportation to the port.
- Electricity duty: State-level duties on power consumption in your manufacturing facility.
- Coal cess: Central cess on coal used for power generation.
- Stamp duty: Charges on export documentation and legal paperwork.
- Central excise on fuel: Additional central taxes on fuel used in production.
- Local levies: Municipal taxes, warehousing charges, and other state or local duties.
The scheme specifically targets taxes that are not refunded under GST or the Duty Drawback scheme, which means you can claim RoDTEP and Duty Drawback together for different tax components without any conflict.
How to claim RoDTEP benefits?
Claiming RoDTEP benefits requires completing these steps before and during your export process.
Before exporting
Register on the ICEGATE portal using your Importer Exporter Code (IEC). Create your RoDTEP credit ledger account in the system where your e-Scrips will be credited after processing.
During export filing
When filing your shipping bill, declare your RoDTEP claim by selecting "RODTEPY" in the scheme code field. This step is critical because you cannot claim RoDTEP retrospectively if you forget to declare it at the time of export. Verify your HS code is correct, and the system will automatically calculate your eligible refund based on the notified rates.
After export
File the Export General Manifest (EGM) through your shipping line or airline. Customs will process your shipping bill and validate your claim automatically. Within 60 to 90 days, the e-Scrip gets credited to your ICEGATE RoDTEP ledger account. You'll receive a notification once the credit appears.
Using your e-Scrip
Log in to ICEGATE and view your available RoDTEP credits. You can use these credits to pay Basic Customs Duty on your imports by selecting the RoDTEP option during import bill filing. Alternatively, transfer the credits to another IEC holder who imports goods and needs duty credits.
Get paid faster and scale your export business globally with PayGlocal
Claiming RoDTEP benefits improves your margins. But you also need faster ways to collect international payments and manage cash flow effectively.
PayGlocal helps exporters collect global payments efficiently while staying compliant with all regulations. Here's how PayGlocal supports your export business:
- Multi-currency accounts: Collect payments in USD, GBP, EUR, and CAD using local accounts in those countries, making it easier for international buyers to pay you.
- Global payment acceptance: Accept payments in 33+ currencies from 180+ countries, giving your buyers flexible payment options.
- Instant FIRC generation: Receive your Foreign Inward Remittance Certificate directly in your inbox after settlement, keeping you compliant without manual follow-ups.
- Transparent pricing: Pay only when you transact with no setup fees, platform fees, or documentation charges.
- One platform: Manage all your international payments from a single dashboard with transaction reports and user role management.
PayGlocal helps you collect payments faster and settle in INR efficiently. Your international buyers pay easily, you get funds faster, and compliance stays automated.
Final thoughts
RoDTEP rates directly impact your export competitiveness by refunding embedded taxes that would otherwise remain unrecovered. Finding your correct HS code, calculating your refund accurately, and declaring your claim in the shipping bill at the time of export ensures you capture these benefits without costly mistakes.
The scheme covers embedded taxes across your supply chain that increase your product costs in global markets. Combining RoDTEP benefits with efficient international payment collection gives you both better margins and better cash flow.
Ready to collect international payments faster in multiple currencies? Get started with PayGlocal today and scale your export business globally.