ALL FRONTIER GLOBAL NEXUS — FAQ SUPPLEMENT

RoDTEP SCHEME

Remission of Duties and Taxes on Exported Products — Frequently Asked Questions

This FAQ answers the most commonly asked questions about India's RoDTEP scheme — covering eligibility, rates, e-Scrip mechanics, interaction with duty drawback, and how to resolve common operational issues.

SECTION 1 — ELIGIBILITY AND COVERAGE

Q1. Which exporters are eligible for RoDTEP?

RoDTEP is available to all categories of Indian exporters — manufacturer exporters, merchant exporters, and exporters under advance authorisation — subject to: (a) the product being in the notified RoDTEP schedule (not all HSN codes are eligible — some sectors are excluded or have 0% rates); (b) the export being a physical export on a Shipping Bill filed on ICEGATE; (c) the exporter holding a valid IEC and GSTIN; (d) the Shipping Bill being filed with the RoDTEP flag enabled. SEZ units and EOUs have separate incentive frameworks and are generally not eligible for RoDTEP on their exports. Service exporters (IT, professional services) are not eligible — RoDTEP covers goods exports only.

Q2. Is RoDTEP available for exports under advance authorisation?

This has been an evolving policy position. Historically, exports under advance authorisation (where inputs are imported duty-free) were restricted from claiming duty drawback (since no customs duty was paid on imports). The position on RoDTEP for advance authorisation exports has been clarified in DGFT notifications — as of recent policy (verify current DGFT circular for the latest position), certain exports under advance authorisation may claim RoDTEP on the domestic taxes component (not the customs duty component, which is covered by the advance authorisation itself). Always verify the current DGFT circular and seek advice from a customs broker before claiming RoDTEP on advance authorisation exports.

Q3. Are all HSN codes covered under RoDTEP?

No — not all 8-digit HSN codes are in the RoDTEP schedule. Several sectors are excluded or have 0% rates including: steel and iron products (largely excluded or 0% as of recent notifications — these sectors benefit from other support mechanisms); fertilisers; certain chemicals with existing subsidy support; pharmaceuticals (some sub-categories at 0% or excluded); cigarettes and tobacco. The RoDTEP schedule is notified by the Ministry of Commerce and updated periodically — rates can be revised upward or downward. Always check the current notified schedule at dgft.gov.in or through ICEGATE before budgeting RoDTEP income into your export economics. Do not rely on rates quoted in this document — verify current rates before each shipment.

Q4. What does RoDTEP actually remit — what taxes are covered?

RoDTEP remits the embedded domestic taxes and levies in the production and export of goods that are not refunded through any other mechanism. Specifically: central and state taxes on fuel (diesel, natural gas, CNG, LPG, coal cess) used in manufacturing and transport that are not covered by GST ITC; electricity duty paid by the manufacturer on power consumed in production; mandi taxes and agricultural produce market committee (APMC) fees on agricultural inputs; stamps and court fees on export transactions; embedded state levies on production inputs not covered by GST. RoDTEP does NOT cover: customs duty on imported inputs (covered by advance authorisation or duty drawback); IGST on exports (covered by GST refund); BCD (Basic Customs Duty) on imported raw materials used in production (covered by duty drawback All Industry Rates).

SECTION 2 — RATES AND CALCULATION

Q5. How is the RoDTEP rate determined and where can I find the current rate for my product?

RoDTEP rates are determined by an inter-ministerial committee based on a bottom-up assessment of embedded taxes per unit of production for each HSN code. The rates are expressed as a percentage of the FOB value of exports, or in some cases as a fixed amount per unit (e.g. per kilogram or per piece). The current notified rates are published by the Ministry of Commerce in the format of an annexure to a DGFT notification. To find the current rate for your product: go to dgft.gov.in → Schemes → RoDTEP → download the current schedule. Alternatively, log in to ICEGATE and check the applicable rate for your HSN code when filing the Shipping Bill. Third-party trade compliance portals (VJM, Taxmann, Drip Capital) also publish the RoDTEP rate schedule in a searchable format.

Q6. Can the RoDTEP rate change after I have already exported?

Yes — RoDTEP rates can be revised by the government at any time through a DGFT notification. However, the rate applicable to a specific shipment is the rate in force on the date the Let Export Order (LEO) was granted on the Shipping Bill — not the date of booking or production. If the rate changes between your booking date and the LEO date, the new rate applies. This creates a small forecasting risk for exporters who plan RoDTEP income over a longer period. Mitigation: monitor DGFT notifications; build a small buffer into RoDTEP income projections; verify the rate at the time of Shipping Bill filing rather than relying on historical rates.

Q7. If my FOB value is USD 100,000 and the RoDTEP rate is 2%, how much will I receive?

RoDTEP credit = USD 100,000 × 2% = USD 2,000 equivalent in INR at the prevailing exchange rate on the date of the Shipping Bill. The credit is converted to INR at the rate used for Shipping Bill valuation. The e-Scrip generated on ICEGATE will be for the INR equivalent of USD 2,000 — approximately INR 1,66,000 at an exchange rate of approximately 83 INR/USD. This INR e-Scrip can be used to pay customs duty on imports or sold in the secondary market.

SECTION 3 — e-SCRIP MECHANICS

Q8. When is the RoDTEP e-Scrip credited to my account?

The RoDTEP e-Scrip is generated automatically on ICEGATE after: (a) the Shipping Bill has received the Let Export Order (LEO); and (b) the Export General Manifest (EGM) has been filed by the carrier after the vessel's departure (confirming the goods have actually left India). After EGM filing, ICEGATE processes the RoDTEP credit — this typically occurs within 3–10 working days of EGM filing, though processing times vary. Log in to the ICEGATE portal under "Credit Ledger" or "RoDTEP Credit" to check the status. If the credit does not appear within 30 days of EGM filing, contact the customs officer at your port of export or raise a ticket on the ICEGATE helpdesk.

Q9. Can I sell my RoDTEP e-Scrip? How does the secondary market work?

Yes — RoDTEP e-Scrips are transferable on ICEGATE. Once credited to your Electronic Credit Ledger, you can transfer the e-Scrip to any other ICEGATE-registered entity — typically importers who need to pay customs duty and would rather purchase RoDTEP scrips at a discount than pay in cash. The secondary market for RoDTEP scrips operates informally — through customs brokers, trade finance companies, and online platforms (IndiaMART has listings; some customs brokers actively trade scrips). Typical secondary market price: 92–97% of face value depending on demand. So a scrip worth INR 1,00,000 face value might sell for INR 92,000–97,000 in cash — a 3–8% discount. If your own import duty payable is less than your RoDTEP credits generated, selling the surplus scrips is an efficient way to monetise the benefit.

Q10. What happens if my Shipping Bill was filed with the RoDTEP flag not enabled?

If the RoDTEP flag was not enabled on the Shipping Bill at the time of filing, the RoDTEP credit will not be generated automatically after LEO. You may be able to amend the Shipping Bill to add the RoDTEP flag — this requires: filing a Shipping Bill amendment request on ICEGATE; approval by the customs officer at the port of export; the amendment must be made before the EGM is filed. After EGM filing, amendments to the Shipping Bill are significantly more difficult and may require a formal correction procedure. Prevention: always verify with the CHA that the RoDTEP flag is enabled before the Shipping Bill is filed — this is a critical pre-filing checklist item.

SECTION 4 — INTERACTION WITH OTHER SCHEMES

Q11. Can I claim both RoDTEP and duty drawback on the same export?

Yes — in most cases. RoDTEP and duty drawback cover different taxes: RoDTEP covers domestic embedded taxes (electricity duty, fuel taxes, mandi taxes, state levies); duty drawback (All Industry Rates) covers customs duty paid on imported inputs used in the exported product. Since they cover different taxes, they are generally claimable simultaneously on the same export. However, there are limitations: if the export is under advance authorisation (duty-free imported inputs), the drawback claim on those specific inputs is restricted — but RoDTEP may still be available on the domestic taxes component. Always confirm the specific interaction for your HSN code and export scheme with a customs broker or the DGFT before claiming both.

Q12. Can I claim both RoDTEP and GST refund on the same export?

Yes — GST refund (IGST on exports) and RoDTEP cover completely different taxes and are claimable simultaneously. The GST refund covers IGST paid on goods exported (or input tax credit on inputs used in exported goods); RoDTEP covers embedded non-GST domestic taxes. File the GST refund on the GSTN portal (after EGM confirmation); the RoDTEP credit is generated on ICEGATE (after EGM). Both are independent mechanisms with no interaction or double-counting.

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Doc 106 — FAQ Supplement: RoDTEP Scheme — All Frontier Global Nexus