If you're an Indian exporter and you haven't checked your RoDTEP status in the last 60 days, there's a good chance you've missed money or are about to.

Here's what happened: In February 2026, the government cut RoDTEP rates by 50%, a mid-quarter shock that hit exporters' margins without warning. Then, on March 23, 2026, full rates were restored. Then the scheme was extended to September 30, 2026. Then the FY2026–27 budget allocation was cut by 45%.

Four major policy changes in eight weeks. Each one directly affects how much money your export business is entitled to claim and how urgently you need to claim it.

If you exported goods between February 23 and March 22, 2026, your RoDTEP credits may have been processed at 50% and may need manual reconciliation. If you have unprocessed scrolls sitting in your ICEGATE ledger right now, you are at risk of losing claims due to the reduced budget pool.

This blog covers everything that RoDTEP is, what changed in 2026, who is eligible, what rates apply to your product, exactly how to claim step by step, and the one thing every exporter needs to do before September 30, 2026.

What Is RoDTEP? The Basics Every Exporter Needs to Know

RoDTEP stands for Remission of Duties and Taxes on Exported Products.

It is India's primary export incentive scheme, launched on January 1, 2021 to replace the older MEIS (Merchandise Exports from India Scheme). The switch was forced by the WTO MEIS was successfully challenged by the United States as a prohibited export subsidy that violated WTO norms. India moved to RoDTEP to make its export incentive framework WTO-compliant.

What makes RoDTEP different from MEIS?

MEIS provided an additional top-up incentive on your export value, essentially a bonus for exporting. RoDTEP does not do this. RoDTEP only remits taxes and duties that are genuinely embedded in your cost of production but not refunded through any other mechanism GST, Duty Drawback, or Advance Authorisation.

These embedded costs include:

• Electricity duty paid by your factory not refundable under GST

• Fuel taxes (non-creditable) used in manufacturing and transportation

• Mandi tax / Agricultural Produce Market Committee (APMC) levies

• Stamp duty on export documents

• State-level cesses and levies that are not part of GST

In simple terms: RoDTEP gives you back money that was already yours money that was invisibly sitting inside your cost of production, making your goods less competitive globally. It is not a subsidy. It is a remission and that distinction is what keeps it WTO-compliant.

The 2026 RoDTEP Rollercoaster What Actually Happened

This is the timeline every Indian exporter needs to understand, because each event has direct financial implications for claims already filed or about to be filed.

February 23, 2026: The 50% Cut

The DGFT issued Notification No. 60/2025-26 restricting RoDTEP disbursements to 50% of notified rates citing budgetary constraints. For exporters mid-shipment, this was a cash-flow shock with no warning. A shipment that would have earned ₹2 lakh in RoDTEP credits suddenly earned only ₹1 lakh.

March 23, 2026: Full Rates Restored

Following urgent representations from export councils and the escalating impact of West Asia maritime disruptions on Indian exporter costs, the DGFT issued Notification No. 66/2025-26 restoring RoDTEP rates and value caps to 100% of notified levels effective from February 23, 2026 onwards.

The government stated that this step was intended to provide timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor.

This means the 50% cut was effectively cancelled and rates were restored retroactively to February 23 for all eligible exports.

Official Reference: DGFT Notification No. 66/2025-26 — RoDTEP Rates Restored (TaxGuru)
News Coverage: India Shipping News — Government Restores RoDTEP Rates Amid West Asia Disruptions

March 31, 2026: Scheme Extended to September 30, 2026

Via Notification No. 74/2025-26, the government extended the RoDTEP scheme by six months from March 31, 2026 to September 30, 2026. The scheme had previously been set to expire at the end of FY2025-26.

FY2026–27 Budget Allocation: ₹10,000 Crore (Down 45%)

This is the most structurally important development and the one least discussed. The Union Budget for FY2026–27 allocated ₹10,000 crore to RoDTEP down sharply from ₹18,233 crore in FY2025–26.

A 45% budget cut with the same number of eligible exporters means one critical implication: claims may be processed on a first-come, first-served or pro-rata basis if total filings exceed available funds. Delay in generating and lodging scrips increases your risk of late or partial settlement.

The practical implication: do not let scrolls sit unprocessed in your ICEGATE ledger. Convert them to e-Scrips as soon as they appear.

Who Is Eligible for RoDTEP in 2026?

Eligible Exporters

• DTA (Domestic Tariff Area) Units regular manufacturing and trading exporters 

• Advance Authorisation (AA) Holders reinstated from June 1, 2025 via Notification No. 11/2025-26

• Export Oriented Units (EOUs) reinstated from June 1, 2025 

• Special Economic Zones (SEZs) reinstated from June 1, 2025

For AA, EOU, and SEZ units: eligibility is specific to product and period; always verify the latest DGFT circulars and Appendix 4RE entries before claiming.

Official Reference: DGFT — Foreign Trade Policy 2023 & Notifications (dgft.gov.in) Eligibility Guide: RoDTEP Scheme — Full Form, Rates, Eligibility (Bajaj Finserv)

Eligible Products

RoDTEP covers most manufactured goods across 8,555 tariff lines listed in Appendix 4R of the Foreign Trade Policy. However, certain product categories were historically excluded:

• Steel (excluded at launch verify current status for your specific HS code)

• Organic and inorganic chemicals

• Pharmaceuticals

Important: Exclusions and inclusions have been revised multiple times since 2021 including alignment with Customs Tariff changes effective October 1, 2024 and May 1, 2025. Always verify your specific HS code against the current Appendix 4R on the DGFT portal before assuming eligibility.

What RoDTEP Does NOT Cover

• Exports of services (only goods) 

• Products where Duty Drawback already covers the same taxes 

• Goods exported under EPCG scheme for the same component of duty 

• Products not listed in Appendix 4R 

• Exports where the exporter has not declared RoDTEP intent on the Shipping Bill this cannot be claimed retroactively

RoDTEP Rates What Percentages Apply to Your Product?

RoDTEP benefits are calculated as a percentage of the FOB value of your exported goods. The rates vary by product category from as low as 0.3% to as high as 4.3% for certain categories.

Here are indicative rates for key Indian export sectors (as per Appendix 4R, rates applicable as of February 22, 2026):

Note: Rates are subject to value caps per unit meaning the benefit is capped at a maximum amount per unit even if the percentage calculation would exceed it. Always check both the rate AND the value cap for your HS code in Appendix 4R.

How to find your exact rate:

1. Go to dgft.gov.in → FTP 2023 → Appendices → Appendix 4R

2. Search your 8-digit ITC-HS Code

3. Note both the percentage rate AND the value cap per unit

Official Source: DGFT — Appendix 4R RoDTEP Rates (dgft.gov.in)
Rate Guide: RoDTEP Scheme 2026 — Rates, Calculation & Claim Guide (GlobalOmega)

How to Calculate Your RoDTEP Benefit With an Example

Formula: RoDTEP Benefit = FOB Value of Shipment × RoDTEP Rate (%)

Subject to: Value Cap per unit × Number of units (whichever is lower)

Example:

• Product: Cotton Fabric, HS Code: 52081100

• FOB Value: ₹25,00,000

• RoDTEP Rate: 1.5%

• Calculated Benefit: ₹25,00,000 × 1.5% = ₹37,500

• Value Cap: ₹3.50 per metre × 10,000 metres = ₹35,000

• Actual RoDTEP Credit: ₹35,000 (value cap applies — lower of the two)

This is why checking the value cap matters. For high-FOB-value but high-volume shipments, the value cap often bites and your actual credit is lower than the percentage would suggest.

Step-by-Step: How to Claim RoDTEP on ICEGATE

RoDTEP operates entirely through a digital platform on ICEGATE. Here is the exact, step-by-step process:

Official Portal: ICEGATE — Indian Customs Electronic Gateway (icegate.gov.in)
Full Claim Guide: RoDTEP Scheme 2026 — Step-by-Step Claim Process (RASP International)

Step 1: Declare RoDTEP Intent on the Shipping Bill (Most Critical Step)

When your CHA files the Shipping Bill on ICEGATE, they must select the RoDTEP scheme flag for each eligible export item. This declaration must be made at the time of Shipping Bill filing it cannot be added after the LEO (Let Export Order) is issued.

This is where the most money is permanently lost by Indian exporters. If your CHA files a "Free Shipping Bill" without the RoDTEP flag, you lose that shipment's entire RoDTEP entitlement forever. No amendment is possible after filing.

Action: Before every shipment, confirm with your CHA:

• "Are you filing the Shipping Bill with the RoDTEP flag for all eligible items?"

• "Is the Shipping Bill type set to RoDTEP not Free?"

Make this a non-negotiable pre-shipment checklist item.

Step 2: EGM Filing by Shipping Agent

Once your vessel departs, your shipping agent files the Export General Manifest (EGM) on ICEGATE. EGM closure is mandatory for RoDTEP processing to begin. Without EGM, your scroll will not be generated.

Action: Track EGM filing status after every shipment. Don't assume it's done confirm with your freight forwarder.

Step 3: Customs Verification and Scroll Generation

Once the Shipping Bill is filed and EGM is closed, ICEGATE's customs system cross-verifies:

• HS Code on Shipping Bill matches Appendix 4R eligibility

• GSTIN, IEC, and invoice details are consistent

• GSTR-1 invoice numbers match the Shipping Bill

If everything checks out, customs generates an electronic scroll this is the official record of your RoDTEP credit entitlement appearing in your ICEGATE ledger. You can track scroll status on ICEGATE under Services → Enquiry → RoDTEP Scroll.

Step 4: Generate Your RoDTEP Credit Ledger Account (If First Time)

If this is your first RoDTEP claim, you need to create your RoDTEP Credit Ledger Account on ICEGATE:

1. Log in to icegate.gov.in with your IEC and digital signature

2. Navigate to: Services → RoDTEP → Credit Ledger → Create Account

3. Link your bank account details

4. Submit, account is typically activated within 1–2 working days

Step 5: Convert Scrolls to e-Scrips

Once the scroll appears in your Credit Ledger, you must actively convert it to an e-Scrip (electronic scrip). This does not happen automatically.

1. Log in to ICEGATE

2. Navigate to: RoDTEP → Credit Ledger → View Scrolls

3. Select the eligible scrolls

4. Click "Generate Scrip" → assign a scrip value

5. Download the e-Scrip certificate with its unique scrip number

Critical 2026 Warning: With the FY2026–27 budget allocation cut by 45% to ₹10,000 crore, early conversion of scrolls to scrips is essential. Do not let scrolls accumulate. Process them as they appear weekly, not monthly.

Step 6: Use or Transfer Your e-Scrips

Once generated, RoDTEP e-Scrips can be used in two ways:

Option 1: Pay Basic Customs Duty (BCD) Use your scrip to offset basic customs duty on your own imports. Navigate to ICEGATE's duty payment section and apply the scrip number against an import transaction.

Option 2: Transfer to Another Importer RoDTEP e-Scrips are transferable you can sell them to importers who want to use them to pay customs duties. Scrip trading typically happens through licensed customs brokers or trade finance platforms.

Note: Scrips cannot be used to pay IGST, GST Compensation Cess, or SWS (Social Welfare Surcharge) only Basic Customs Duty.

The February–March 2026 Window: Check Your ICEGATE Ledger Now

If you exported goods between February 23 and March 22, 2026, your scrolls may have been generated at 50% of the notified rate under Notification No. 60/2025-26.

With rates now restored retroactively to February 23 via Notification No. 66/2025-26, your credits should have been revised upward. But this reconciliation may not have happened automatically for all accounts.

Action: Check the status of shipping bills processed during February–March 2026. If credits still reflect the 50% rate, raise a grievance ticket on ICEGATE or contact your jurisdictional Customs Commissionerate with the relevant scroll details and notification reference.

Do not assume ICEGATE auto-corrected this. Verify and follow up.

ICEGATE Helpdesk: icegate.gov.in/guidelines/helpdesk | Toll Free: 1800-3010-1000
Email: icegatehelpdesk@icegate.gov.in
Notification Reference: DGFT Notification No. 66/2025-26 Full Text (A2Z Taxcorp)

RoDTEP vs Duty Drawback Which Should You Claim?

A question many Indian exporters ask especially on shipments that use imported inputs.

Duty Drawback refunds the customs duty paid on imported raw materials or components used in manufacturing the exported product. RoDTEP refunds domestic taxes and levies not captured under GST as described above.

The key rule: you cannot claim both RoDTEP and Duty Drawback on the same component of duty. They are mutually exclusive for any given tax or duty element.

However, for most exporters using domestic raw materials, RoDTEP and Duty Drawback are not in conflict they address different embedded costs. You can typically claim both schemes on the same shipment for different cost components.

Practical approach:

• If your product uses significant imported inputs: Duty Drawback may deliver higher value

• If your product is primarily domestically sourced: RoDTEP is the primary incentive

• For complex manufacturing with both domestic and imported inputs: consult your CHA or a trade consultant to model both options

RoDTEP vs RoSCTL Which Applies to Textiles?

For textile and garment exporters specifically, there is an additional scheme to be aware of: RoSCTL (Rebate of State and Central Levies and Taxes) which covers apparel and made-up articles and typically provides higher rates than standard RoDTEP for that segment.

Textile exporters should verify which scheme is applicable to their specific product category (HS code) and compare rates before filing some garment categories have higher benefits under RoSCTL than under RoDTEP's standard Appendix 4R rates.

The 5 Most Common RoDTEP Mistakes Indian Exporters Make

Mistake 1: Not declaring RoDTEP on the Shipping Bill The single biggest source of lost RoDTEP money in India. Your CHA files a Free Shipping Bill no RoDTEP flag and the entire shipment's entitlement is gone. Permanently.

Mistake 2: Using the wrong HS Code on the Shipping Bill If the HS Code on your Shipping Bill doesn't match Appendix 4R, the scroll won't generate. And if the HS Code on your invoice differs from the Shipping Bill, the whole claim is at risk plus you face an ICEGATE mismatch query.

Mistake 3: Letting scrolls sit in ICEGATE unprocessed Scrolls don't automatically become usable scrips. Many exporters don't check their ICEGATE ledger for months missing conversion opportunities and, in a constrained budget year, increasing the risk of delayed settlement.

Mistake 4: Not reconciling the Feb–March 2026 50% cut window If your shipments in that window had scrolls generated at 50%, you may be owed additional credit. This requires active reconciliation not passive waiting.

Mistake 5: Claiming RoDTEP on ineligible products Some exporters claim RoDTEP on products not listed in Appendix 4R or on product categories where the export used imported inputs covered under Advance Authorisation (where different rules apply). This can trigger customs scrutiny and demand notices.

What to Watch for After September 30, 2026

The RoDTEP scheme's current extension runs until September 30, 2026. After that, one of three scenarios will play out:

Scenario 1: Extension at current rates The government renews the scheme for another 6–12 months at similar rates. Most likely outcome if export growth targets remain on track.

Scenario 2: Rate revision Rates are revised potentially upward for priority sectors (textiles, engineering, agri) if export performance warrants it, or downward if budget constraints persist.

Scenario 3:  Structural change The scheme is restructured as part of India's push toward USD 2 trillion exports by 2030 potentially integrating RoDTEP with other FTP 2023 instruments or replacing it with a next-generation framework.

What exporters should do: Monitor DGFT notifications closely from August 2026 onwards. Subscribe to FIEO and EEPC India alerts. And critically build your export pricing models with RoDTEP as an uncertain variable from October 2026, not a fixed assumption.

Stay Updated:

• DGFT Notifications Portal — bookmark and check weekly from August 2026

• FIEO — Federation of Indian Export Organisations — subscribe to trade alerts

• EEPC India — engineering sector export updates

• CBIC Customs Circulars — for customs duty and drawback updates

How Documentation Quality Directly Affects Your RoDTEP Claims

Here is the connection that most RoDTEP guides never make and the one that matters most operationally for Indian exporters.

Your RoDTEP claim lives or dies on the quality of your Shipping Bill. And your Shipping Bill quality depends on whether your commercial invoice, packing list, and product details are consistent, accurate, and correctly entered.

ICEGATE cross-verifies: invoice numbers in GSTR-1, port code in GSTR-1, GSTIN used for filing must match exactly with the shipping bill, and EGM must be filed by the carrier all of these are preconditions for the scroll to generate.

If your commercial invoice uses a different product description than your Shipping Bill. If your HS Code is wrong by one digit. If your GSTR-1 invoice number doesn't match. The scroll doesn't generate. Your RoDTEP claim fails silently with no error notification, just no credit.

This is why export documentation accuracy is not just a compliance issue. It is a direct financial issue every document error is a potential RoDTEP claim lost.

How Freightnaut Protects Your RoDTEP Claims

Every rupee of RoDTEP you're entitled to starts with a correctly prepared Shipping Bill and that starts with correctly prepared export documents.

Freightnaut's export documentation software eliminates the root causes of RoDTEP claim failures:

Export documentation automation Generate your commercial invoice, packing list, and shipping instructions from a single data entry ensuring your HS Code, product description, GSTIN, and invoice number are identical across every document. No ICEGATE mismatch. No scroll failure.

Custom export document templates Your invoice template pre-populates all mandatory fields HS Code, IEC, GSTIN, LUT declaration, Incoterms, AD Code. Nothing is accidentally omitted that could block your RoDTEP scroll.

Shipment tracking dashboard Real-time visibility on every active shipment so you know when your vessel has departed and EGM should have been filed. You can proactively follow up with your shipping agent instead of discovering an EGM delay when your scroll fails to appear.

End-to-end shipment tracking Track your shipment from factory to foreign port ensuring your LC timeline and shipping bill dates are always aligned, protecting both your payment and your RoDTEP claim.

All-in-one export management platform Your documentation and shipment tracking in one system so the operational discipline that protects your RoDTEP claims is built into your daily workflow, not left to chance.

With the FY2026–27 RoDTEP budget cut by 45%, every claim you don't file early and correctly is a claim that may not get fully settled. The exporters who file accurately and promptly will be paid first. The ones managing documents on spreadsheets will be last.

RoDTEP 2026 Action Checklist for Indian Exporters

Immediately:

• Log in to ICEGATE and check your RoDTEP Credit Ledger are there unprocessed scrolls?

• Verify all February–March 2026 shipping bills were scrolls generated at 50% or 100%? Reconcile if needed

• Convert all pending scrolls to e-Scripts do not wait

Before every shipment:

• Confirm with your CHA that the Shipping Bill will be filed with the RoDTEP flag

• Verify your 8-digit HS Code against Appendix 4R on the DGFT portal

• Ensure your invoice, packing list, and shipping bill all use the same HS Code and product description

• Confirm EGM will be filed promptly after vessel departure

Ongoing:

• Check ICEGATE RoDTEP ledger weekly convert scrolls as they appear

• Monitor DGFT notifications for post-September 30, 2026 scheme updates

• Reconcile GSTR-1 invoice numbers with Shipping Bills monthly

The Bottom Line

RoDTEP in 2026 is not a passive benefit that flows automatically. It requires active management, correct declaration on the Shipping Bill, timely EGM filing, scroll monitoring, and prompt scrip conversion.

With rates restored to 100%, the scheme extended to September 30, 2026, and a 45% budget cut creating urgency around timely filing there has never been a more important time for Indian exporters to get their RoDTEP process right.

The FY2026–27 budget allocation is ₹10,000 crore down sharply from ₹18,233 crore. File promptly.

That's not just advice. In a constrained budget year, it's the difference between receiving your full RoDTEP entitlement and waiting in a queue that may not reach you.

Frequently Asked Questions

Q: What is the full form of RoDTEP? 

A: RoDTEP stands for Remission of Duties and Taxes on Exported Products. It is India's primary WTO-compliant export incentive scheme that remits embedded taxes and duties not refunded through other mechanisms like GST or Duty Drawback.

Q: Are RoDTEP rates fully restored in 2026? 

A: Yes. The DGFT issued Notification No. 66/2025-26 dated March 23, 2026, restoring RoDTEP rates and value caps for all eligible export products superseding Notification No. 60/2025-26 which had restricted benefits to 50%.

Q: How long is the RoDTEP scheme valid in 2026? 

A: Via Notification No. 74/2025-26, the government extended RoDTEP through September 30, 2026. Post-September renewal will need to be monitored through DGFT notifications.

Q: Can I claim RoDTEP if I missed declaring it on my Shipping Bill? 

A: No. RoDTEP must be declared at the time of Shipping Bill filing. It cannot be added retroactively after the LEO is issued. This is why confirming with your CHA before every shipment is essential.

Q: What is a RoDTEP e-Scrip and how is it used? 

A: An e-Scrip is an electronic credit generated from your ICEGATE RoDTEP scroll. It can be used to pay Basic Customs Duty on your own imports or transferred to another importer. It cannot be used to pay IGST, GST Compensation Cess, or SWS.

Q: Why is the 2026 RoDTEP budget cut important for exporters? 

A: A compressed budget means claims may be processed on a first-come, first-served or pro-rata basis if total filings exceed available funds. Delay in generating and lodging scrips increases your risk of late or partial settlement.

References & Official Sources

All data, notification numbers, and policy information in this blog are sourced from official government portals and verified trade publications:

Last updated: May 2026. Policy information is subject to change always verify with the DGFT portal and ICEGATE for the most current notifications. 

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