What RoDTEP Is
RoDTEP, the scheme that refunds embedded duties and taxes on Indian exports, is set to end on September 30, 2026. The Commerce Ministry has requested a five-year extension and increased funding, but as of September 25, no confirmation has come from the Department of Expenditure, which has the final say. Exporters do not yet know whether shipments from October 1 will qualify for RoDTEP benefits.
RoDTEP stands for Remission of Duties or Taxes on Export Products. The Indian government launched it in January 2021 to replace the earlier MEIS scheme and ensure India's export incentives comply with World Trade Organization guidelines.
The scheme refunds taxes that exporters pay during production and distribution but cannot recover through other channels. This includes state taxes on inputs, electricity duties, and levies on transportation fuels. The refund comes as electronic scrips, called e-scrips, generated on the ICEGATE portal. Exporters can use these scrips to offset basic customs duty on their imports or transfer them to other IEC holders.
To claim RoDTEP, exporters must declare their intent on the Shipping Bill at the time of export. Customs verifies the declaration and the e-scrips are credited to the exporter's ICEGATE account.
Where Things Stand Right Now
RoDTEP has been extended at least five times since its initial period ended in March 2023, each time for six months to one year. The last extension came in April 2026 by six months, bringing the current deadline to September 30.
The Commerce Ministry has now asked the Department of Expenditure to extend the scheme for five years and raise the FY27 allocation to Rs 23,000 crore, up from the Rs 10,000 crore budgeted in the Union Budget. The government spent Rs 18,233 crore on the scheme in FY26 according to the revised estimate. A Commerce Ministry official told Business Standard on September 16 that clarity is expected by September 30.
Until that clarity arrives, exporters booking shipments for October do not know whether those shipments will earn the benefit.
What Exporters Should Do Right Now
Review active shipments and understand which ones are eligible for RoDTEP. Check that your Shipping Bills filed this week correctly declare RoDTEP intent, with accurate HS codes and correct FOB values. The most common reasons RoDTEP claims fail are errors in HS code classification and inaccurate FOB value declarations, both of which originate in the export documentation before the Shipping Bill is filed.
If your total RoDTEP claim this financial year exceeds Rs 1 crore, ensure the Annual RoDTEP Return is filed before the deadline to avoid denial of benefits.
Watch for an announcement from the Department of Expenditure on or before September 30. If the scheme is extended, business continues as before. If it is not, exporters will need to review the pricing on contracts already signed for October shipments.
Frequently Asked Questions
What is RoDTEP and who is eligible?
RoDTEP refunds embedded taxes on Indian exports that are not recovered through other schemes. Manufacturer exporters and merchant exporters with India as the country of origin are eligible. SEZ units, Export-Oriented Units, and exporters already using duty exemption schemes like the Advance Authorisation Scheme are not eligible.
Will RoDTEP be extended beyond September 30, 2026?
As of September 25, no extension has been officially confirmed. The Commerce Ministry has requested a five-year extension from the Department of Expenditure. A decision is expected by September 30.
How is RoDTEP claimed?
Exporters declare their RoDTEP claim in the Shipping Bill at the time of export. After customs verification, e-scrips are generated in the exporter's ICEGATE account and can be used to offset import duties or transferred to other IEC holders.
What happens to RoDTEP e-scrips I have already earned if the scheme ends on September 30?
The sources do not confirm the treatment of already-issued scrips in the event the scheme ends. What is confirmed is that e-scrips already generated in your ICEGATE credit ledger can be used to offset basic customs duty on imports or transferred electronically to other IEC holders who hold a RoDTEP ledger account. For clarity on any impact of the scheme ending on existing scrips, check the ICEGATE portal and the DGFT website directly, as the government updates guidelines there first.
Can I transfer or sell my RoDTEP e-scrips to another exporter?
Yes. RoDTEP e-scrips are transferable electronically to other Importer Exporter Code holders who have a RoDTEP credit ledger account on ICEGATE. This makes unused scrips a tradeable asset rather than something that simply lapses if you do not have import duty to offset them against.
Why do some exporters receive lower RoDTEP benefits than others?
RoDTEP rebate rates vary across sectors. Some sectors receive lower benefits compared to others, which has been a consistent concern among exporter associations. The rate applicable to your product is determined by its HS code classification. Using a wrong HS code at the time of Shipping Bill declaration can result in a lower rate being applied than what your product actually qualifies for, or the claim being rejected entirely.
What is the Annual RoDTEP Return and when does it apply?
If your total RoDTEP claim across a financial year exceeds Rs 1 crore, you are required to file the Annual RoDTEP Return by the deadline specified by the DGFT. Failing to file this return by the deadline results in denial of benefits for that period. This is a filing requirement that operates separately from the Shipping Bill declaration made at the time of each individual export.
Why has RoDTEP been extended so many times in short intervals rather than for a longer period?
Since its initial period ended in March 2023, the scheme has been extended at least five times, each time for six months to one year. This short-interval approach has been a long-standing concern among exporters. An export association representative quoted in Business Standard described the uncertainty it creates: the government has extended the scheme repeatedly but always for a short period, leaving exporters without a clear long-term picture. This is precisely why the Commerce Ministry is now requesting a five-year extension rather than another short renewal, to give exporters the predictability they need to plan export contracts and pricing over a longer horizon.