RoDTEP Scheme: Duty Credit Scrips, Rates & Complete Guidelines for Indian Exporters

Exporting goods from India comes with hidden costs—taxes, levies, and duties embedded in the product that don't get refunded through normal GST input credits. The RoDTEP scheme (Remission of Duties and Taxes on Exported Products) was created to address this gap. 

Understanding RoDTEP rates, the duty credit scrip process, and how to claim benefits can directly impact your bottom line. This guide walks you through everything you need to know.

What is the RoDTEP Scheme?

RoDTEP stands for Remission of Duties and Taxes on Exported Products. It's a government initiative that refunds indirect taxes and duties embedded in exported products but not recoverable through standard GST input credit or other refund schemes.

Key Facts About RoDTEP:

• Launched January 1, 2021, replacing the MEIS scheme
• Fully WTO-compliant export incentive mechanism
• Operates through a fully digital platform integrated with customs
• Issues refunds as electronic duty credit scrips (e-scrips)
• Replaced MEIS after India lost WTO case on export subsidies

Applicable to Exporters From:

• Domestic Tariff Area (DTA) units
• Special Economic Zones (SEZs)
• Export-Oriented Units (EOUs)
• Advance Authorisation (AA) holders

Sectors Covered:

• Textiles and apparel
• Agriculture and processed foods
• Engineering goods and machinery
• Chemicals and petrochemicals
• Electronics and electrical products
• Metals and mineral products
• 10,700+ additional HS code categories

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Govt Notifies RoDTEP Rates Guidelines

RoDTEP rates are announced by the Directorate General of Foreign Trade (DGFT) and expressed as a percentage of FOB (Free On Board) value. Rates vary significantly by product category and value addition involved.

RoDTEP Rate Structure:

• Overall range: 0.5% to 4.3% of FOB value
• Each product linked to specific HS code
• Government periodically reviews based on DGFT Committee recommendations
• Updated on DGFT website (dgft.gov.in)

What These Rates Refund:

• Mandi taxes on agricultural products
• Value Added Tax (VAT)
• Coal cess and fuel excise duties
• Central excise duties
• State and central levies embedded in exported goods
• Taxes that cannot be recovered through GST input credit mechanism

Understanding Duty Credit Scrip Meaning

Duty Credit Scrip Definition:

An electronic certificate issued by the government representing the remission amount an exporter is entitled to receive under RoDTEP. Functions as a digital financial instrument that can reduce import costs or be traded for cash value.

What an E-Scrip Can Do:

• Pay customs duties on future imports
• Settle excise duties and other eligible duties
• Be transferred to other registered importers
• Be sold/traded for cash value
• Improve exporter cash flow
• Reduce effective import costs for recipients

Key Advantages of E-Scrips Over Paper System:

• Instant digital generation and crediting
• No manual documentation delays
• Transparent ledger tracking in real-time
• Seamless transfer to other importers
• Reduced fraud risk through digital audit trail
• Faster liquidity access for exporters

How to Claim RoDTEP Benefits

Claiming RoDTEP benefits is completely digital. The entire process happens automatically once you declare your intent at the customs port. Here's how it works in just 5 simple steps.

Step 1: Declare in Shipping Bill

• Include RoDTEP claim when filing shipping bill at customs
• Select the correct RoDTEP rate for your product's HS code
• This declaration cannot be added later

Step 2: File Export Manifest

• File Export General Manifest (EGM) after goods are loaded
• Confirms goods exported match shipping bill details

Step 3: Customs Approval

• Customs processes claim and verifies details
• IT-based screening checks for accuracy

Step 4: Credit Generation

• Duty credit is automatically generated and transferred to your
• ICEGATE ledger
• Appears within days of approval

Step 5: Use or Transfer Credit

• Use credit to pay customs duties on future imports
• Or transfer credit to other importers
• All done online through ICEGATE portal

Eligibility Criteria and Restrictions

Who Can Claim RoDTEP:

• Domestic Tariff Area (DTA) exporters: Full eligibility
• Special Economic Zone (SEZ) units: Eligible with specific conditions
• Export-Oriented Units (EOUs): Eligible subject to scheme rules
• Advance Authorisation (AA) holders: Eligible with compliance requirements
• Trading companies: Eligible if exporting goods
• Manufacturers: Eligible for exports of manufactured goods

What Products Are Eligible:

• All merchandise goods exports (10,750+ HS codes)
• Agricultural products and processed foods
• Textiles and apparel
• Engineering goods and machinery
• Chemicals and chemical products
• Electronics and electrical goods
• Metals and mineral products
• Handicrafts and specialty items

Ineligible Sectors:

• Services (software, IT, BPO, consulting)
• Business process outsourcing
• IT services and consulting
• Software development services
• Professional services
• Entertainment and media services

Closing Notes

The RoDTEP scheme is your passport to recover hidden export costs that were previously lost. With rates ranging from 0.5% to 4.3% and a fully digital claiming process, the scheme has made it easier than ever to access government refunds on your exported goods. The key is simple: declare RoDTEP at the time of export, let customs process your claim, and watch the duty credits land in your ICEGATE ledger within days. 

FAQs on RoDTEP Scheme

What does duty credit scrip mean? 

A duty credit scrip is an electronic certificate representing the government's refund obligation to an exporter under RoDTEP. The e-scrip can be used to pay customs duties on imports or can be transferred to other importers.

Can I transfer my RoDTEP credits to another importer? 

Yes, RoDTEP e-scrips are fully transferable. 

Are service exports eligible for RoDTEP? 

No, RoDTEP covers only merchandise goods exports. 

Can I claim RoDTEP after filing my shipping bill? 

No, the RoDTEP claim must be declared at the item level in the shipping bill itself. 

Can SEZ units claim RoDTEP benefits? 

Yes, SEZ units are eligible to claim RoDTEP benefits, though specific conditions and documentation requirements apply.

About the author

Mehul Jagwani

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Mehul is a seasoned content writer with a passion for simplifying complex accounting and GST topics. With a keen interest in entrepreneurship and business management, he specializes in creating informative and engaging content for themunim.com. His goal is to help businesses understand and implement accounting and GST software solutions effectively. When he's not crafting content, Mehul enjoys exploring new places and spending time with his Golden Retriever.