RoDTEP Scheme Explained: How Exporters Claim Duty Remission

Exporting from India can involve taxes and duties that remain embedded in the cost of goods even after export. If you do not account for these correctly, they can affect your export pricing and margins. Here’s how the RoDTEP scheme works for exporters: the Remission of Duties and Taxes on Exported Products scheme exempts eligible central, state, and local duties, taxes, and levies that are not otherwise refunded or exempted on exported products. The benefit is provided through an electronic, transferable duty credit or e-scrip mechanism.

For exporters, the important point is that RoDTEP is not simply a refund you calculate and collect after shipping. Your eligibility, shipping bill declaration, customs processing, and subsequent e-scrip generation must all align with the applicable scheme requirements.

Key Takeaways:

• RoDTEP provides remission for eligible unrefunded duties, taxes, and levies on exports.
• The claim is linked to the export documentation and Shipping Bill.
• Eligible rates and value caps depend on the notified tariff entry and product.
• Customs processing and ICEGATE procedures determine how the benefit is credited.
• Exporters claiming more than ₹1 crore in a financial year have additional ARR requirements.

What Is the RoDTEP Scheme and Why Does It Matter?

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was introduced to address taxes and duties incurred on exported products that are not otherwise refunded, exempted, or credited under another mechanism.

The underlying principle is important: an exporter should not carry certain domestic taxes and levies in the cost of goods simply because the goods are ultimately exported. The scheme therefore provides a remission through transferable duty credits rather than treating the benefit as a conventional cash refund.

The amount available is not a universal percentage for every exporter. RoDTEP rates and applicable value caps are notified against specific tariff items in the relevant schedule. Therefore, you need to check the applicable tariff classification and current notified rate rather than applying a generic percentage to every shipment.

This distinction matters when you prepare export costing. Exporters dealing with imported inputs can also learn how to calculate landed cost for imported goods to assess the broader impact of duties, freight, and other import costs. If your product classification is incorrect, you may calculate the expected benefit incorrectly or create a documentation issue during customs processing.

Who Can Claim RoDTEP Benefits?

Eligibility depends on the exported product, applicable scheme provisions and the conditions attached to the relevant tariff entry. Exporters should not assume that every product or every export transaction automatically qualifies.

The first step is therefore to identify the correct HS classification for the product and verify whether that classification appears under the applicable RoDTEP schedule.

The notified schedule specifies the relevant tariff item, description, RoDTEP rate and, where applicable, a cap per unit.

You should also check whether another export benefit or exemption affects the treatment of the relevant duties and taxes. RoDTEP is intended to remit eligible duties and taxes that have not already been refunded or exempted through another mechanism.

For exporters managing multiple products, this means eligibility should be checked at the product and tariff-line level rather than assuming that one RoDTEP treatment applies across the entire export catalogue.

How Does the RoDTEP Claim Process Work?

The RoDTEP claim process is closely connected with the Shipping Bill filed for the export. The claim is made through the prescribed declaration in the export documentation, after which the customs system processes the Shipping Bill according to the applicable procedures and risk controls.

The broad process can be understood in five stages.

1. Check Product Eligibility

Before filing the export documents, identify the correct HS code and check the corresponding RoDTEP entry and notified rate or cap.

Do not estimate the benefit from the product name alone. The tariff classification is central to determining the applicable treatment.

2. Make the Required Declaration

The exporter needs to make the prescribed RoDTEP claim/declaration in the Shipping Bill. The customs system uses the information submitted with the export documentation for processing the benefit.

This makes accurate Shipping Bill preparation particularly important. Errors in product classification, value, quantity, or other relevant fields can affect processing.

3. Customs Processes the Shipping Bill

After export formalities, Shipping Bills with RoDTEP and/or drawback claims can be subjected to risk-based processing. Understanding what happens to your shipment at customs can help exporters better prepare for the customs processing stage of a RoDTEP claim. The ICEGATE advisory explains that Shipping Bills are routed through the Risk Management System after the Export General Manifest is filed, with eligible bills either undergoing officer intervention or moving through facilitation to the relevant scroll queue.

4. RoDTEP Scroll Is Generated

Once the Shipping Bill is processed for the benefit, the eligible amount moves through the RoDTEP scroll process.

The approved credits are then made available through the exporter’s ICEGATE account for the subsequent e-scrip process.

5. Generate the E-Scrip

The exporter can use the available credits to generate a RoDTEP duty credit script through ICEGATE. ICEGATE currently provides dedicated RoDTEP functionality, including e-scrip generation and viewing transaction and scrip details.

What Documents Should Exporters Keep for RoDTEP?

RoDTEP claims should be supported by proper records. Exporters should also understand the Bill of Entry vs Bill of Lading explained in our documentation guide to distinguish key import and transport documents. The exact documentation required can depend on the transaction and scheme requirements, but exporters should maintain a clear audit trail connecting the export, product classification, value, and claimed benefit.

Important records can include:

• Commercial invoice
• Packing list
• Shipping Bill
• Export-related declarations
• Purchase and production records, where relevant
• Product classification records
• Supporting tax and duty information
• Customs documentation
• Transport and logistics records
• Records supporting the Annual RoDTEP Return, where applicable

The purpose is not simply to have paperwork available. Your records should allow the claimed benefit to be traced back to the underlying export transaction.

This becomes particularly important when the claim is selected for verification or scrutiny. The current DGFT Handbook of Procedures requires relevant physical or digital records substantiating RoDTEP claims reported in the Annual RoDTEP Return to be maintained for five years.

For a separate explanation of this mechanism, refer to our guide on the duty drawback scheme in India.

What Is the Annual RoDTEP Return?

The Annual RoDTEP Return, or ARR, is an additional compliance requirement for exporters whose total RoDTEP claim exceeds the prescribed threshold in a financial year.

Under the current Handbook of Procedures, exporters whose total RoDTEP claim exceeds ₹1 crore in a financial year across all 8-digit HS codes are required to file the ARR. The return is filed through the DGFT portal by 31 March of the following financial year.

For example, claims relating to a financial year must be reported by the applicable deadline in the following financial year. The requirement is based on the total RoDTEP claim value, rather than simply whether the exporter received a particular amount after processing. DGFT’s RoDTEP guidance also clarifies the treatment of merchant exporters where the threshold is crossed.

This is an area where exporters should not wait until the filing deadline. The ARR requires information about the taxes and duties relevant to the exports, so the underlying records should already be organised.

What Happens If an Exporter Misses the ARR Requirement?

Missing the ARR deadline can have consequences beyond a simple late filing.

The current DGFT procedures provide a three-month grace period after the standard deadline, subject to the applicable composition fee. If the ARR is not reported as required, further RoDTEP scroll-out for the relevant Shipping Bills can be stopped after the grace period. The procedures also specify record-keeping and conditions for resumption of scroll-out following applicable compliance.

This is why exporters with substantial RoDTEP claims should build ARR preparation into their regular compliance calendar.

Waiting until the following year to reconstruct shipment-level information can make the process more difficult, particularly where multiple HS codes, manufacturers, or merchant-export transactions are involved.

How Does Customs Brokerage Support RoDTEP Claims?

Customs Brokerage can play an important role in the practical side of RoDTEP compliance. Associating with an IATA-accredited agency can also give exporters access to experienced logistics and documentation support for international shipments.

A customs broker can help coordinate the customs documentation and filing process, including information that affects the Shipping Bill. This is particularly useful when an exporter handles multiple products, tariff classifications or export destinations.

The role should not be viewed as simply submitting paperwork. Good customs coordination means checking whether the export documentation is internally consistent before it reaches the customs system.

For example, the product description on the commercial invoice, HS classification, quantity, and value should be reviewed carefully. If supporting documents contain conflicting information, resolving the issue before filing is generally preferable to discovering the discrepancy during customs processing.

ICEGATE provides exporters with access to Shipping Bill details and item-wise reward information, allowing users to check relevant transaction and status information through the portal.

For exporters using multiple schemes, it is also important to understand how RoDTEP interacts with other export benefits. Your documentation and claims should reflect the specific provisions applicable to the transaction rather than treating every remission or incentive as interchangeable.

RoDTEP vs Duty Drawback: Are They the Same?

RoDTEP and the Duty Drawback Scheme are both associated with relieving exporters from certain duties and taxes, but they are not the same scheme.

RoDTEP is specifically structured around remission of eligible duties, taxes and levies that are not otherwise refunded or exempted. The benefit is issued through electronic duty credit or e-scrip mechanisms.

Duty Drawback operates under its own rules, rates, and procedures. Therefore, exporters should evaluate the applicable scheme provisions for each transaction instead of assuming that one scheme can simply replace the other.

Similarly, exporters using imported inputs may need to evaluate whether schemes such as Advance Authorisation are relevant to their production and export model. Advance Authorisation has its own eligibility and compliance conditions and should not be confused with RoDTEP.

Common RoDTEP Mistakes Exporters Should Avoid

RoDTEP compliance depends on accurate classification, current rates, proper documentation, and timely record-keeping, making it important to avoid these common mistakes.

1. Applying an Outdated Rate

RoDTEP rates and caps are notified against tariff entries and can change. Always check the applicable current notification or schedule rather than relying on an old spreadsheet.

2. Using the Wrong HS Code

A product’s commercial name does not by itself determine its tariff classification. An incorrect HS code can affect both customs treatment and the applicable RoDTEP entry. Avoiding common customs clearance mistakes causing delays can also help reduce classification and documentation issues during export processing.

3. Treating RoDTEP as an Automatic Cash Refund

RoDTEP operates through duty credit/e-scrip mechanisms. The process involves customs processing, scroll generation, and e-scrip creation rather than a simple cash reimbursement.

4. Ignoring Record-Keeping

If your business crosses the ARR threshold, the underlying records need to support the information reported. DGFT currently requires relevant supporting records to be maintained for five years.

5. Waiting Until Year-End

ARR compliance and shipment documentation are easier to manage when records are reconciled throughout the year rather than reconstructed later.

A Practical RoDTEP Compliance Checklist

Before submitting an export shipment, review the following:

• Confirm the correct HS classification.
• Check the current RoDTEP rate and applicable cap.
• Verify that the product is eligible under the applicable schedule.
• Make the required RoDTEP declaration in the Shipping Bill.
• Check invoice, packing list, and Shipping Bill information for consistency.
• Maintain supporting export and tax records.
• Monitor the RoDTEP processing and scroll status through the relevant customs systems.
• Generate the e-script after eligible credits become available.
• Track cumulative RoDTEP claims during the financial year.
• Assess whether the ₹1 crore ARR threshold applies.
• Maintain supporting records for the required retention period.
• Review current DGFT and Customs instructions before relying on an older process.

Final Word: Make RoDTEP Part of Your Export Compliance Process

The RoDTEP scheme, explained in practical terms, is a structured remission mechanism, not simply another export refund. To claim the benefit correctly, you need to connect product classification, Shipping Bill declarations, customs processing, e-scrip generation, and ongoing record-keeping.

The most important step is to treat RoDTEP as part of your export compliance workflow from the beginning. Checking eligibility and tariff classification before shipment, maintaining consistent documentation, and monitoring claims throughout the financial year can make the process easier to manage.

If your exports involve multiple products, complex customs classifications, or significant RoDTEP claims, professional customs brokerage support can help you review documentation and customs requirements before filing.

Planning an export shipment? Speak with Clearfast Group about your customs and export documentation requirements before filing, so your RoDTEP process starts with the right classification and paperwork. With a strong presence since 1997, our experts have required expertise and knowledge to guide you. 

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