RoDTEP and Export Incentives for Small Exporters: 2026 Guide

RoDTEP (Remission of Duties and Taxes on Exported Products) refunds part of the hidden taxes built into your export price, as transferable e-scrips you can use to pay customs duty or sell to other importers. As of October 2026 the scheme runs until 31 December 2026, covering exports by DTA units, Advance Authorisation holders, SEZ units and EOUs. This guide explains who is eligible, how to claim RoDTEP step by step on ICEGATE, and which other export incentives small Indian exporters should claim alongside it.

Updated October 2026. Export incentive rules change often; always check the latest DGFT and CBIC notifications or speak to your CA or customs broker before relying on any figure.

What RoDTEP Is and Why It Exists

When you make a product in India, some taxes get locked into its cost and are not refunded through GST or duty drawback. Think of the VAT on diesel used by your transporter, electricity duty at your factory, mandi tax on raw material, or stamp duty on your export documents. Under WTO-compatible trade principles, a country should not export its taxes. RoDTEP is the Government of India’s way of returning a portion of these embedded taxes to exporters.

The scheme replaced the older Merchandise Exports from India Scheme (MEIS). The operational guidelines were issued under DGFT Notification No. 19 dated 17 August 2021, and the details are maintained on the DGFT RoDTEP page.

How the benefit is calculated

Each eligible product has a RoDTEP rate, usually a percentage of the FOB value of the export, and in many cases a value cap per unit. For example, a line might read “1.2% of FOB, capped at Rs X per kg”. You receive whichever is lower: the percentage of FOB or the cap.

Element	Where to find it	What it means for you
Rate (%)	Appendix 4R or 4RE, by 8-digit HS code	Percentage of FOB value refunded
Value cap	Same appendix, per unit of quantity	Maximum rebate per kg, piece, litre and so on
Unit of measurement	Same appendix	Your shipping bill quantity must use the matching unit

Illustrative example: Suppose a hardware exporter in Rajkot ships brass fittings with an FOB value of Rs 10,00,000, and the HS code carries a rate of 1% with no binding cap. The RoDTEP credit would be Rs 10,000. If the cap per kg works out lower than Rs 10,000 for the quantity shipped, the cap applies instead. The numbers here are only for illustration; look up the actual rate for your HS code.

Current Status of RoDTEP (October 2026)

RoDTEP has been extended in short steps. The most recent notification, as reported by TaxGuru’s summary of Notification 41/2026-27, says:

• The scheme continues up to 31 December 2026 for eligible exports by DTA units, Advance Authorisation holders, SEZ units and EOUs.
• RoDTEP rates and value caps in Appendix 4R and 4RE, as applicable on 30 September 2026, continue unchanged during the extended period.
• All other terms and conditions remain the same.

Two things follow for a small exporter. First, shipments made after 31 December 2026 are covered only if DGFT issues a further extension; watch for a notification in December. Second, because rates are frozen, there is no point waiting for a rate revision before shipping.

The Ministry of Textiles has separately extended RoSCTL (Rebate of State and Central Taxes and Levies), which covers apparel and made-ups, for 1 October to 31 December 2026. If you export garments or home textiles, check whether your products fall under RoSCTL rather than RoDTEP.

Who Is Eligible, and Who Is Not

Generally eligible

• Manufacturer exporters and merchant exporters holding a valid IEC
• Exports of goods whose HS codes are listed in Appendix 4R (DTA) or 4RE (AA, EOU, SEZ)
• Exports through courier and postal modes where the system supports the claim

Common exclusions to check

The RoDTEP guidelines list categories that are not eligible. These typically include goods not listed in the appendices, exports where the goods are re-exported after import, certain goods subject to minimum export price or export duty, and exports by specific categories excluded in the guidelines. Read the exclusion list in the guidelines on the DGFT page for your product before you price the benefit into your quote.

Check	Why it matters
Is your HS code in Appendix 4R or 4RE?	No listing, no benefit
Are you exporting as DTA, AA, EOU or SEZ?	Decides which appendix and rate applies
Is the unit of quantity correct on the shipping bill?	A mismatch can block or reduce the claim
Is the export realised in permitted currency?	Non-realisation can lead to recovery of the benefit
Is the item in any exclusion category?	Excluded items get nothing even if listed elsewhere

How to Claim RoDTEP Step by Step

The claim runs through ICEGATE, the Indian Customs electronic gateway. Your customs broker (CHA) usually files the shipping bill, but you need your own ICEGATE registration to manage the credit ledger.

1. Register on ICEGATE with your IEC and a Class 3 Digital Signature Certificate (DSC). The DSC is needed to create the ledger and generate scrips.
2. Declare the RoDTEP claim in the shipping bill. For each item, the shipping bill must carry the RoDTEP claim declaration (commonly shown as “RoDTEPY”) and the correct HS code and quantity. Brief your CHA on this for every shipment; a missed declaration is very hard to fix later.
3. Let the export complete. After the goods are shipped, the Export General Manifest (EGM) is filed by the shipping line or airline.
4. Customs processes the claim. Once processed, a scroll showing the admissible RoDTEP amount is generated and appears in your ICEGATE account.
5. Create the Electronic Duty Credit Ledger on ICEGATE (one-time), using your DSC.
6. Generate the e-scrip. Select the shipping bills in the scroll and create an e-scrip for the credit amount.
7. Use or transfer the scrip. Use it to pay Basic Customs Duty on your own imports, or transfer it to another IEC holder (usually by selling it through a broker at a small discount).
8. File the RoDTEP Annual Return if it applies to you. DGFT has a separate FAQ and user guide for the RoDTEP Annual Return on its RoDTEP page; check whether your claims cross the applicable threshold, as non-filing can affect future claims.

Rules for e-scrips

• Use: E-scrips are used to pay Basic Customs Duty on imports.
• Transfer: The full amount of a scrip must be transferred at once to another IEC holder; partial transfer is not allowed.
• Validity: Under the Electronic Duty Credit Ledger (Amendment) Regulations, 2022, e-scrips are valid for two years from creation (originally one year). The validity does not restart when a scrip is transferred.
• Do not let them lapse. Unused credit expires. Small exporters who do not import should sell scrips promptly.

Other Export Incentives Small Exporters Should Claim

RoDTEP is only one piece. Many first-time exporters leave money on the table by not claiming the rest.

Incentive	What it gives	Who handles it
Duty drawback (All Industry Rate)	Refund of customs duties on imported inputs, at notified rates by tariff item	Customs, claimed through the shipping bill
GST refund on exports	Refund of IGST paid on exports, or of unutilised input tax credit if exporting under LUT	GST portal and customs
RoSCTL	Rebate of embedded taxes for apparel and made-ups (instead of RoDTEP for covered items)	Ministry of Textiles scheme via customs
Advance Authorisation	Duty-free import of inputs used in export products	DGFT
EPCG	Import capital goods at zero customs duty against an export obligation	DGFT
Interest subvention for MSME exporters (Export Promotion Mission – Niryat Protsahan)	2.75% per year subvention on pre- and post-shipment rupee export credit	DGFT portal plus your bank

Interest subvention for MSME exporters

DGFT operationalised an interest subvention under the Export Promotion Mission – Niryat Protsahan through Trade Notice 20/2025-26 dated 2 January 2026, later amended. According to bank and trade body circulars, it offers MSME manufacturer and merchant exporters a subvention of 2.75% per year on pre-shipment and post-shipment rupee export credit, for credit sanctioned on or after 2 January 2026. You file an online “Intent to Avail” on the DGFT portal before drawing the credit and give the resulting number to your bank. Ask your bank’s trade finance desk to confirm current eligibility and exclusions.

GST: do not forget the refund

Exports are zero-rated under GST. You can either export on payment of IGST and claim it back, or export under a Letter of Undertaking (LUT) without paying IGST and claim refund of accumulated input tax credit. Most small exporters prefer the LUT route because it avoids blocking cash. If you need to check the GST on your domestic purchases while costing an order, a simple GST calculator helps.

Common Mistakes That Cost Exporters Money

• Wrong HS code. Using an 8-digit code that differs from the appendix wipes out the benefit or invites scrutiny. Classify carefully with your CHA.
• Missing RoDTEP declaration on the shipping bill.
• Unit mismatch between shipping bill quantity and the appendix unit.
• No ICEGATE ledger or DSC, so the scroll sits unused for months.
• Letting scrips expire instead of selling them.
• Ignoring export realisation. If payment is not realised within the permitted time, benefits can be recovered.
• Not pricing incentives in. Experienced exporters quote with RoDTEP and drawback in mind; new ones often quote too high and lose orders.

A Simple Monthly Routine for Small Exporters

1. Before each shipment: confirm HS code, appendix rate, unit and RoDTEP declaration with your CHA.
2. Weekly: check ICEGATE for new scrolls after EGM filing.
3. Monthly: generate e-scrips for all processed shipping bills.
4. Monthly: use scrips for your imports or sell them through a reputed broker.
5. Quarterly: reconcile export realisations with your bank (eBRCs) and incentives received.
6. December 2026: watch for DGFT’s notification on RoDTEP beyond 31 December 2026.

When you land a milestone order or open a new export market, it can also be worth announcing it; our guide to press release distribution in India explains how trade media pick up such stories.

Frequently Asked Questions

Is RoDTEP available in 2026?

Yes. DGFT Notification No. 41/2026-27 dated 30 September 2026 continues the scheme up to 31 December 2026, with rates and value caps as on 30 September 2026. Anything beyond that needs a fresh notification.

Can SEZ units and EOUs claim RoDTEP?

Yes, for the current extended period the notification covers eligible exports by DTA units, Advance Authorisation holders, SEZ units and EOUs. AA, EOU and SEZ exports use the rates in Appendix 4RE.

How long is a RoDTEP e-scrip valid?

Two years from the date of creation in the electronic ledger, after the 2022 amendment to the Electronic Duty Credit Ledger Regulations. Transfer does not extend validity.

Can I sell my RoDTEP scrips?

Yes. E-scrips can be transferred to another IEC holder on ICEGATE, but only for the full amount of the scrip. Exporters who do not import usually sell them to importers through brokers.

Can I claim both RoDTEP and duty drawback?

Generally yes, because they refund different things: drawback covers customs duty on imported inputs, while RoDTEP covers embedded taxes not refunded elsewhere. Check the guidelines for your product, as some categories have conditions.

What is the RoDTEP rate for my product?

Look up your 8-digit HS code in Appendix 4R (DTA) or Appendix 4RE (AA, EOU, SEZ) on the DGFT RoDTEP page. Rates are product-specific and often carry a value cap per unit.

Make Incentives Part of Every Shipment

For a small exporter, RoDTEP, drawback and GST refunds can turn a thin margin into a workable one. Set up ICEGATE and your DSC, brief your CHA on the RoDTEP declaration for every shipping bill, generate and use scrips monthly, and check for MSME interest subvention through your bank. Keep a calendar reminder for late December to see whether RoDTEP is extended beyond 2026, and confirm details with your CA or customs broker before each new product line.