The RoDTEP scheme or Remission of Duties and Taxes on Exported Products scheme is a WTO-compliant export incentive launched by the Government of India in January 2021, to reimburse embedded taxes and duties that were not refunded under any other export scheme like GST refunds or duty drawback. The objective of the scheme is to make Indian exports globally competitive by neutralizing taxes and duties that exporters incur but are not rebated anywhere else in the tax system.
It was launched and made rffective from January 1, 2021. It replaced Merchandise Exports from India Scheme (MEIS), which was found WTO-incompatible.
| Aspect | Details |
|---|---|
| Eligibility | All sectors (including MSMEs); based on HSN code coverage |
| Rebate Format | Provided as a transferable duty credit scrip |
| Usage | Can be used to pay basic customs duty or sold in the market |
| Rate of Rebate | Varies by product (typically between 0.5% – 4.3% of FOB export value) |
| Administered by | DGFT (Directorate General of Foreign Trade) |
RoDTEP reimburses hidden, non-creditable taxes such as
These taxes added to the cost of exports but were earlier non-recoverable.
| Step | Description |
|---|---|
| Exporter ships goods | Eligible products must be exported with proper documentation |
| Duty calculated | Based on product-specific rates (%) notified by DGFT |
| Credit Issued | RoDTEP benefit is given as transferable duty credit scrips |
| Usage | Can be used to pay basic customs duty or traded in the market |
If an exporter ships cotton garments worth ₹10 lakh and the RoDTEP rate for that product is 2%. They get a duty credit of ₹20,000 (2% of FOB). This credit can be used to pay import duties.
Similarly, If an exporter sends ₹10 crore worth of garments and RoDTEP rate is 1.7%, they will get ₹17 lakh as duty credit.
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