The Scheme for Remission of Duties and Taxes on Export Products (RoDTEP) is one of the most significant changes in India’s export incentive framework in recent years. Introduced as a replacement for the Merchandise Exports from India Scheme (MEIS), RoDTEP is designed to neutralise the burden of various central, state, and local duties and taxes that are not refunded through any other mechanism.
The scheme officially came into effect on 1 January 2021, but the government announced detailed guidelines in August 2021 through Notification No. 19/2015-20. It applies to thousands of products, offering a rebate on eligible exports through a budgeted allocation each year. Administered by the Central Board of Indirect Taxes and Customs (CBIC), RoDTEP issues benefits in the form of electronic duty credits, which exporters can use to pay Basic Customs Duty (BCD).
This blog explains the scheme’s scope, exclusions, rate comparisons with MEIS, and operational aspects so exporters can clearly understand how to take advantage of it.
ABOUT RoDTEP
The Government of India notified RoDTEP via an amendment to the Foreign Trade Policy, replacing MEIS with a WTO-compliant alternative. The aim is to ensure exporters remain competitive globally without violating international trade rules.
Key features:
- Effective Date — Applies to exports made from 1 January 2021.
- Coverage — 8,555 HSN codes notified under the scheme, with benefits ranging from 0.01% to 4.3% of the Free on Board (FOB) value.
- Benefit Caps — For certain products, the scheme fixes a maximum rebate per unit to limit payouts.
- Ease of Claim — No requirement for an electronic Bank Realisation Certificate (eBRC) at the time of claim; however, realisation must occur within RBI’s permitted timelines.
- Administration — Managed by CBIC instead of the Directorate General of Foreign Trade (DGFT). Detailed procedures and deadlines for applications are issued separately.
- Form of Benefit — Rebates are issued as transferable electronic scrips (eScrips) stored in an electronic ledger. These can only be used to pay Basic Customs Duty.
By replacing MEIS with RoDTEP, the government has created a structure better aligned with global trade rules, ensuring exporters can still claim relief on embedded taxes.
Excluded Reports
While RoDTEP covers a wide range of products, several categories are excluded:
- Exports under Advance Authorisation or Duty Free Import Authorisation (DFIA) schemes.
- Products manufactured or exported by Special Economic Zones (SEZs) and Export Oriented Units (EOUs).
- Units operating under the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme.
- Products from Electronics Hardware Technology Parks (EHTPs) and Bio-Technology Parks (BTPs).
- Exports through non-EDI ports.
- Used or second-hand goods.
- Items classified as restricted or prohibited for export.
It’s worth noting that the RoDTEP Committee may review and potentially include SEZ/EOU exports and Advance Authorisation exports in the future, which could significantly widen the scheme’s scope.
RoDTEP AND MEIS RATE COMPARISON
One of the most discussed aspects of RoDTEP has been the difference in incentive rates compared to MEIS. While MEIS provided higher percentages for many items, RoDTEP offers rates that are generally lower but structured to be WTO-compliant.
Observations:
- For products with a RoDTEP rate above 1.5%, a per-unit cap is usually prescribed.
- For 138 items, benefits are a fixed rupee amount per unit instead of a percentage of FOB value.
- 5,596 product items have rates between 0.5% and 1%.
Examples at the chapter level:
| Chapter | Description | RoDTEP Rate | MEIS Rate |
| 16–22 | Prepared foodstuffs, beverages, spirits, vinegar | 0.5%–4% | 2%–5% |
| 30 | Pharmaceutical products | Not Notified | 3% |
| 39 & 40 | Rubber or plastics | 0.5%–2.4% | 3% |
| 64 | Footwear | 0.5%–1.5% | 2%–3% |
| 70 | Glass & glassware | 0.5%–2.3% | 2%–3% |
| 72 & 73 | Iron & steel, articles thereof | Not Notified | 2%–3% |
| 84 | Machinery & mechanical appliances | 0.5%–2.2% | 3% |
| 85 | Electrical machinery & equipment | 0.5%–2% | 2%–3% |
| 8703 | Passenger motor vehicles | 0.5%–1.5% | 2% |
| 851712 | Mobile phones | ₹24.50/unit | 2% |
These differences mean exporters must carefully check the notified rates for their products to calculate the exact benefit under RoDTEP.
Practical Implications for Exporters
For many exporters, RoDTEP will not fully replace the revenue they once earned through MEIS. However, it still offsets some of the non-refundable taxes built into production and supply chains.
To benefit from RoDTEP:
- Confirm that your product’s HSN code is listed in the notified schedule.
- Review the applicable rate and any per-unit cap.
- Ensure that exports are made from eligible locations (EDI ports) and not under excluded schemes.
- Maintain proper records for verification, even though eBRC is not needed at the claim stage.
- Use the eScrip credits only for paying Basic Customs Duty — they cannot offset IGST or other levies.
Exporters should also monitor policy updates, as the RoDTEP Committee has the authority to add or remove product categories and change rates.
Final Thoughts
RoDTEP is more than just a replacement for MEIS — it’s a restructuring of India’s export incentive system to make it WTO-compliant while still giving exporters relief from embedded taxes. The lower rates may be challenging for some sectors, but the scheme provides a stable, legally compliant framework for claiming benefits on a large range of goods
For exporters, the key lies in understanding eligibility, checking the notified rates, and maintaining compliance with documentation requirements. Those who adapt quickly will be best positioned to capture the maximum advantage under the new regime.
