RoDTEP and Export Incentives — Complete Guide for Indian Exporters

India offers several export incentive schemes designed to make Indian goods competitive in global markets. The problem is that most MSME exporters either do not know these schemes exist, or they know about them but do not claim them correctly. The result is money left on the table — often lakhs of rupees per year that should be in your pocket.

The centrepiece of India's current export incentive framework is RoDTEP (Remission of Duties and Taxes on Exported Products). But RoDTEP is just one piece. There is also RoSCTL for textiles, Duty Drawback for customs duties on inputs, interest subvention for export credit, transport assistance, and market development support. Each scheme targets a different cost burden that Indian exporters face.

This guide explains every active export incentive scheme, how to claim them, and the mistakes that cause exporters to lose their entitlements.

India's Export Incentive Landscape

Before diving into individual schemes, here is the overall picture:

Scheme	What It Reimburses	Who Is Eligible	How You Get It
RoDTEP	Central/state taxes not refunded under GST	Most goods exporters	E-scrip via DGFT
RoSCTL	State and central taxes on apparel/textiles	Apparel (Ch. 61, 62) and made-ups (Ch. 63) exporters	E-scrip via DGFT
Duty Drawback	Customs duties paid on imported inputs	Exporters using imported inputs	Direct credit by Customs
Interest Equalisation	Interest cost on export credit	MSMEs and specified sectors	Lower interest rate from bank
Transport Assistance (APEDA)	Freight cost for agricultural products	APEDA-registered exporters	Reimbursement from APEDA
Market Access Initiative (MAI)	Market development costs — trade fairs, studies	Exporters and EPCs	Reimbursement from DoC
TIES	Export infrastructure development	State govts, central agencies, EPCs	Grant from DoC

The first three — RoDTEP, RoSCTL, and Duty Drawback — are the ones that directly increase your per-shipment profitability. The others reduce your overall cost of doing business as an exporter.

RoDTEP — Remission of Duties and Taxes on Exported Products

What Is RoDTEP?

RoDTEP is India's primary export incentive scheme. It reimburses exporters for central and state taxes that are embedded in the cost of exported goods but are not refunded through the GST system or any other existing mechanism.

Think of it this way: when you manufacture goods for export, you pay several taxes that do not get refunded under GST — electricity duty on power consumed in your factory, mandi tax on agricultural inputs, fuel levies on transport, stamp duty on business transactions, property tax on your factory premises. These embedded taxes make your goods more expensive than they should be, putting you at a disadvantage against exporters from countries that fully refund such taxes.

RoDTEP was introduced on 1 January 2021, replacing the earlier MEIS (Merchandise Exports from India Scheme). The key difference: MEIS was a flat incentive that faced WTO challenges. RoDTEP is designed as a reimbursement of actual embedded taxes, making it WTO-compliant.

How RoDTEP Rates Are Set

RoDTEP rates are set at the 8-digit HS code level. Each product has a specific rate expressed as a percentage of FOB (Free on Board) value, along with a maximum cap per unit of the product.

Rate range: Most products have RoDTEP rates between 0.3% and 4.3% of FOB value. Some products have been assigned a nil rate, meaning they are not eligible.

Per-unit cap: In addition to the percentage rate, most products have a maximum amount per unit (per kg, per piece, per square metre, etc.). This cap prevents the incentive from becoming disproportionate on high-value, low-volume shipments.

Example: If your product has a RoDTEP rate of 1.5% with a cap of Rs 5 per kg, and you export 10,000 kg at FOB value of Rs 50 lakh:

• Percentage calculation: 1.5% of Rs 50,00,000 = Rs 75,000
• Cap calculation: Rs 5 x 10,000 kg = Rs 50,000
• You get the lower of the two: Rs 50,000

This is why knowing both your rate and your cap is critical for accurate margin calculations.

How to Check Your RoDTEP Rate

1. Identify your HS code — use the HS Code Finder to determine the correct 8-digit HS code for your product. Misclassification means you either claim the wrong rate or no rate at all.
2. Check the RoDTEP rate schedule — the rate schedule is notified by DGFT and published on the DGFT portal. Search by your 8-digit HS code.
3. Verify the per-unit cap — note the cap amount and the unit of measurement. Factor this into your pricing.

You can also look up your product on the HS code pages to understand the broader classification structure and related codes.

How to Claim RoDTEP — Step by Step

Claiming RoDTEP is built into the standard export process. You do not file a separate application. Here is the workflow:

Step 1: Declare RoDTEP intent on your Shipping Bill

When filing your Shipping Bill on ICEGATE, you must specifically declare that you are claiming RoDTEP. This is done by entering the appropriate "Y" scheme code in the shipping bill. If you do not declare RoDTEP at the shipping bill stage, you cannot claim it later. This is the single most common reason exporters miss their RoDTEP entitlement — they simply forget to tick the box.

Your customs broker handles the shipping bill filing. Make sure they know you want RoDTEP declared on every eligible shipment. Put it in writing.

Step 2: Complete the export and EGM filing

After your goods are loaded onto the vessel or aircraft, the shipping line or airline files the Export General Manifest (EGM) with Customs. This confirms that your goods have physically left India. The EGM filing triggers the RoDTEP scrip generation process.

Step 3: E-scrip generation

Once the EGM is filed and Customs processes it, your RoDTEP credit is generated as an electronic scrip (e-scrip) in your DGFT account. This typically happens within 15-30 days of EGM filing, though delays can occur during high-volume periods.

Step 4: Check your DGFT scrip ledger

Log in to the DGFT portal at dgft.gov.in and navigate to the RoDTEP/RoSCTL section. Your scrip ledger shows all generated scrips, their amounts, dates, and validity.

Step 5: Use or transfer the scrip

You have two options for using your RoDTEP e-scrip:

• Use it to pay customs duty on imports — if you import raw materials or goods, you can use the scrip to offset the customs duty payable. This is done through ICEGATE at the time of filing your Bill of Entry.
• Sell or transfer the scrip — if you do not import anything, you can transfer the scrip to another entity (typically an importer) who will use it against their customs duty. The transfer is done through the DGFT portal. Scrips typically sell at 95-98% of face value.

Scrip validity: RoDTEP e-scrips are valid for 2 years from the date of generation. After 2 years, they expire. Do not sit on scrips — use them or sell them promptly.

Products Not Eligible for RoDTEP

Not all exports qualify for RoDTEP. The following are excluded:

• Exports made under Advance Authorisation or DFIA (since inputs are already duty-free)
• Exports under EPCG scheme obligations (partial exclusion — check specific notifications)
• Products with a nil RoDTEP rate in the schedule
• EOUs (Export Oriented Units), SEZ units, and FTZ units — they have their own duty exemption framework
• Re-export of imported goods
• Deemed exports

If you use Advance Authorisation for duty-free import of inputs, you cannot claim RoDTEP on the same export. This is an either-or choice, and you should calculate which option gives you a higher net benefit before deciding.

RoSCTL — Rebate of State and Central Taxes and Levies

What Is RoSCTL?

RoSCTL is a separate incentive scheme specifically for the textile and apparel sector. It covers:

• Chapter 61 — knitted or crocheted apparel
• Chapter 62 — woven apparel (not knitted)
• Chapter 63 — made-up textile articles (bed linen, towels, curtains, etc.)

RoSCTL reimburses state and central taxes and levies that are not covered by RoDTEP or any other mechanism. For eligible products, RoSCTL is available in addition to RoDTEP — meaning you can claim both on the same shipment.

RoSCTL Rates

RoSCTL rates are typically higher than RoDTEP rates, reflecting the significant embedded tax burden in India's textile value chain.

Product Category	Typical RoSCTL Rate Range
Apparel (Chapter 61, 62)	3.5% - 6.05% of FOB value
Made-ups (Chapter 63)	3.0% - 5.0% of FOB value

The exact rate depends on your specific 8-digit HS code. Like RoDTEP, there are per-unit caps for each product.

Claiming RoSCTL

The claiming process is identical to RoDTEP — declare the RoSCTL scheme code on your shipping bill, and the e-scrip is generated automatically after EGM filing. The scrip appears in your DGFT ledger and can be used or transferred in the same way as RoDTEP scrips.

Important: For products in Chapters 61, 62, and 63, check both your RoDTEP rate and RoSCTL rate. You should be claiming both on every eligible shipment.

Duty Drawback vs RoDTEP — Understanding the Difference

This is one of the most confused areas in export incentives. Duty Drawback and RoDTEP are different schemes that reimburse different costs. Here is how they differ:

Parameter	RoDTEP	Duty Drawback
What it reimburses	Embedded central/state taxes not refunded under GST	Customs duties paid on imported inputs used in export goods
Administered by	DGFT	Directorate of Drawback, CBIC
How you receive it	E-scrip in DGFT account	Direct credit to bank account
Can you claim both?	Yes — for the portion not covered by the other	Yes — Duty Drawback covers customs duty on inputs, RoDTEP covers other taxes
Rate basis	8-digit HS code of export product	8-digit HS code of export product (All Industry Rate) or actual duty paid (Brand Rate)

Can you claim both RoDTEP and Duty Drawback?

Yes, but with a condition. If you claim Duty Drawback at the higher "composite" rate (which includes excise and customs components), you may not get the full RoDTEP rate. If you claim Duty Drawback at the lower "customs only" rate, you can claim the full RoDTEP rate. The specifics depend on the product and the applicable rates. Your customs broker or CA should run the numbers for your specific product to determine the optimal combination.

Interest Equalisation Scheme

The Interest Equalisation Scheme (officially called the "Interest Equalisation Scheme for Pre and Post Shipment Rupee Export Credit") provides an interest rate subsidy on export finance from banks.

How It Works

Banks charge you a market interest rate on export packing credit and post-shipment credit. Under this scheme, the government reimburses a portion of the interest to the bank, effectively reducing your borrowing cost.

Category	Interest Subvention Rate
MSMEs (any product exported on rupee export credit)	3% per annum
All exporters in 410 identified HS code tariff lines	2% per annum
MSMEs exporting products in the 410 identified tariff lines	5% per annum (3% + 2%)

What this means in practice: If your bank charges you 9% on export packing credit and you are an MSME, you effectively pay only 6% (or 4% if your product is in the identified tariff lines). On a Rs 50 lakh export credit facility, that 3-5% saving translates to Rs 1.5-2.5 lakh per year.

How to Claim

You do not need to file a separate application. The interest subvention is applied by your bank automatically when you avail export credit. However:

• You must inform your bank that you are eligible for the scheme
• You must provide your IEC number and MSME Udyam registration number
• The subvention is applied at the time of interest charging — check your bank statements to confirm it is being applied
• Some smaller banks may not apply it automatically — follow up if needed

Eligibility Conditions

• The scheme applies to rupee-denominated export credit only (not foreign currency loans)
• Maximum credit limit for interest equalisation: Rs 10 crore per exporter per annum
• The MSME benefit requires a valid Udyam registration
• The scheme is periodically renewed by the government — check the latest RBI circular for current validity

Transport Assistance Scheme (APEDA)

If you export agricultural and processed food products, APEDA offers a Transport Assistance Scheme that reimburses a portion of your freight costs for shipping to specified destinations.

Eligible products: Fresh fruits and vegetables, processed food products, floriculture products, organic food, and other APEDA-scheduled products.

What it covers: A portion of the international freight cost (air or sea), up to a maximum cap per kg or per container depending on the destination.

How to claim: Apply through APEDA's online portal (apeda.gov.in) after completing the shipment. You need to submit shipping documents, freight invoices, and bank realisation certificates. Reimbursement typically takes 2-4 months.

This scheme is particularly useful for exporters shipping perishable goods by air, where freight costs can be 15-25% of the product value.

Market Access Initiative (MAI)

The MAI scheme provides financial assistance for export promotion activities. It is not a per-shipment incentive — it helps cover the costs of entering new markets.

What it funds:

• Participation in international trade fairs and exhibitions
• Market studies and surveys for export potential
• Setting up warehouses and display centres abroad
• Testing and certification charges for meeting international standards
• Compliance with packaging and labelling requirements of foreign markets
• Legal expenses for protecting intellectual property abroad

Who can apply: Individual exporters, Export Promotion Councils, industry associations, and trade bodies. The assistance is typically 50-75% of the eligible expenditure.

How to apply: Through the Department of Commerce. Applications are submitted to the relevant EPC or directly to the MAI division. Prior approval is required before incurring the expenditure — you cannot claim reimbursement for costs already incurred without approval.

Trade Infrastructure for Export Scheme (TIES)

TIES provides grants for creating or upgrading export infrastructure — testing laboratories, cold chains, container freight stations, trade facilitation centres, and similar facilities. This scheme is primarily for state governments, central agencies, and export promotion councils, but it indirectly benefits MSME exporters by improving the infrastructure available to them.

If your industry association or local EPC is developing export-related infrastructure, encourage them to apply for TIES funding.

E-Scrip Management — Practical Tips

Since RoDTEP and RoSCTL incentives come as electronic scrips, managing them efficiently is part of your export operations.

Viewing Your Scrips

Log in to the DGFT portal → navigate to RoDTEP/RoSCTL section → Scrip Ledger. This shows:

• Each scrip with its unique identification number
• Amount (face value)
• Date of generation
• Expiry date (2 years from generation)
• Status (active, used, transferred, expired)

Using Scrips for Import Duty Payment

If you import goods (raw materials, components, machinery for your own use), you can use RoDTEP scrips to pay the customs duty. This is done through ICEGATE at the time of filing your Bill of Entry. You need to enter the scrip details, and the duty is debited from your scrip balance.

Transferring (Selling) Scrips

If you do not need scrips for your own imports, sell them. The process:

1. Log in to DGFT portal
2. Navigate to scrip transfer section
3. Enter the buyer's IEC number and the scrip details
4. Buyer confirms the transfer on their DGFT account
5. Transfer is completed electronically

Scrips trade at a small discount to face value — typically 95-98%. There are brokers and online platforms that facilitate scrip trading. Your customs broker can usually connect you with buyers.

Avoiding Scrip Expiry

Set a reminder for 18 months after each scrip is generated. This gives you 6 months to use or sell it before expiry. Expired scrips are a dead loss — the government does not extend validity or compensate for expired scrips.

Common Mistakes That Cost Exporters Money

Not claiming RoDTEP on every shipment. This is the single biggest loss. If you forget to declare RoDTEP on even one shipping bill, you lose that incentive permanently. There is no mechanism to claim retrospectively. Instruct your customs broker — in writing — to declare RoDTEP on every eligible shipment without exception.

Not knowing your RoDTEP rate. If you do not know your rate, you cannot factor it into your pricing. Use the HS Code Finder to confirm your 8-digit HS code, then look up the rate on the DGFT portal. Build the RoDTEP benefit into your export pricing model.

Not using scrips before expiry. Scrips expire after 2 years. If you have scrips sitting in your DGFT ledger that you are not using, sell them immediately. Even selling at 95% of face value is better than letting them expire worthless.

Confusing RoDTEP with Duty Drawback. These are different schemes. You can claim both — but the combination depends on whether you take composite or customs-only drawback. Get your customs broker or CA to optimise the combination for your specific product.

Not claiming Interest Equalisation. Many MSME exporters pay full interest on export credit because they did not inform their bank about the Interest Equalisation Scheme, or because the bank did not apply it automatically. Check your loan statements. If the subvention is not being applied, raise it with your bank's trade finance department.

Not registering for RCMC. Without a valid RCMC from an Export Promotion Council, your RoDTEP claims may face issues. Get your RCMC immediately after receiving your IEC. Refer to our DGFT registration guide for the full RCMC application process.

Claiming RoDTEP on Advance Authorisation exports. If you import inputs duty-free under Advance Authorisation and then claim RoDTEP on the same export, you are double-dipping. This is not allowed and will result in recovery proceedings. Choose one or the other based on which gives you the higher net benefit.

Calculating Your Total Incentive Benefit

For accurate export pricing, you need to know the total incentive you will receive per shipment. Here is a framework:

Incentive	Your Rate	Amount per Rs 10 Lakh FOB Shipment
RoDTEP	Check your HS code rate	Varies — typically Rs 3,000 to Rs 43,000
RoSCTL (textiles only)	Check your HS code rate	Rs 30,000 to Rs 60,500
Duty Drawback	Check your HS code rate	Varies by product
Interest Equalisation	3-5% on export credit	Rs 15,000 to Rs 25,000 per annum

Fill in your specific rates and use this to build your pricing model. Many exporters who think they cannot compete on price discover that incentives make them competitive after all.

Key Takeaways

• RoDTEP is India's primary export incentive — it reimburses embedded taxes not covered by GST, at rates of 0.3% to 4.3% of FOB value per 8-digit HS code
• Claim RoDTEP by declaring the scheme code on every shipping bill — failure to declare means permanent loss of that incentive
• RoSCTL is an additional incentive for apparel (Chapters 61, 62) and made-ups (Chapter 63) at rates of 3-6% — claim it alongside RoDTEP
• Duty Drawback reimburses customs duties on imported inputs — it is separate from RoDTEP and can be claimed alongside it
• Interest Equalisation provides 3-5% interest subvention on export credit for MSMEs — inform your bank and verify it is being applied
• RoDTEP/RoSCTL e-scrips are valid for 2 years — use them to pay import duty or sell them before they expire
• Do not claim RoDTEP on exports made under Advance Authorisation — choose the higher-benefit option
• Factor all applicable incentives into your export pricing model to compete effectively in global markets