The Remission of Duties and Taxes on Exported Products (RoDTEP) is a government scheme operationalized from January 1, 2021, by the Ministry of Commerce and Industry to boost India's exports. The scheme's origin lies in the need to replace the earlier Merchandise Exports from India Scheme (MEIS), which the World Trade Organization (WTO) ruled as a non-compliant export subsidy following a complaint by the USA. RoDTEP was created to establish a WTO-compliant mechanism for refunding embedded taxes and duties, thereby ensuring that Indian products are cost-competitive in the global market.
The core problem RoDTEP solves is the non-refund of various central, state, and local levies that are incurred during the manufacture and distribution of exported goods but are not remitted under any other existing mechanism. These embedded taxes include, but are not limited to, state taxes on fuel, electricity duties, mandi tax, and coal cess. The mechanism works by providing a rebate to exporters, generally calculated as a percentage of the Freight on Board (FOB) value of exports, with rates varying by product and listed in Appendix 4R of the Foreign Trade Policy (FTP). The refund is issued digitally as a transferable electronic scrip (e-scrip) through the Indian Customs Electronic Gateway (ICEGATE) portal, which can be used to pay Basic Customs Duty on imports.
RoDTEP is closely connected to the Foreign Trade Policy (FTP) and the Directorate General of Foreign Trade (DGFT), which issues notifications regarding its rates and extensions. It replaced the MEIS scheme, which was phased out due to its non-compliance with the WTO's Agreement on Subsidies and Countervailing Measures (SCM Agreement). While the scheme's fundamental principle of refunding embedded taxes remains the same, the DGFT has recently extended the scheme until March 31, 2026, and restored full benefits after a temporary 50% reduction in rates was withdrawn in March 2026. The scheme covers all sectors, including textiles, and is available to both manufacturer and merchant exporters.