RoDTEP Scheme Rates: How to Calculate and Maximise Your Refunds

The RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme is a game-changer for Indian exporters. Launched on January 1, 2021, the scheme ensures that exporters get reimbursed for embedded taxes and duties that were not previously refunded under other schemes. 

If you’re an exporter looking to reduce costs and increase profitability, understanding the RoDTEP Scheme Rates and maximising your refunds is essential.

The RoDTEP Scheme was introduced to refund hidden taxes and duties paid on exported goods. These may include taxes such as:

• Central and state taxes on fuel used for transport
• Mandi tax
• Electricity duties
• Embedded GST (Goods and Services Tax)

Before RoDTEP, these costs added to the export price, reducing the competitiveness of Indian products in global markets. With RoDTEP, exporters can claim refunds, making Indian exports more competitive internationally.

RoDTEP rates vary depending on the product’s HS Code (Harmonised System Code). The rates are notified by the Directorate General of Foreign Trade (DGFT) and typically range between 0.3% and 4.3% of the FOB (Free on Board) value.

Identify the HS Code

Check the correct HS Code for your product from the Customs Tariff or DGFT website.

Refer to the RoDTEP Rate List

Visit the DGFT portal and download the RoDTEP notification to find the applicable rate for your product.

Verify the FOB Value

The FOB value is the total value of your exported goods.

For example, the cotton shirts, with an HS code of 6105 and a RoDTEP rate of 1.2%, have a FOB value of ₹1,00,000, resulting in a refund calculation of ₹1,00,000 multiplied by 1.2%, which equals ₹1,200.

Here’s a step-by-step guide to calculate your RoDTEP refund:

Determine the FOB Value

The FOB value is declared in the shipping bill and includes the cost of goods up to the port of export.

Find the Applicable Rate

Check the RoDTEP rate for your product’s HS Code in the official rate list.

Apply the Formula

Refund = FOB Value × RoDTEP Rate (%)

If your product’s FOB value is ₹1,00,000 and the RoDTEP rate is 2%, the refund will be: ₹1,00,000 × 2% = ₹2,000.

Claim the Refund

The refund amount will be credited as RoDTEP e-scrips on the ICEGATE portal, which can be used to pay customs duties or be sold to other importers.

To make the most of the RoDTEP scheme, follow these tips:

Classify Products Correctly

Ensure you use the correct HS Code for your goods to claim the accurate RoDTEP rate.

Accurate Documentation

• Double-check details on the shipping bill (FOB value, HS Code, etc.) to avoid errors.
• Use ICEGATE to track and verify your RoDTEP claims.

Claim Refunds Regularly

Submit claims for every shipment. Regularly track refunds through the ICEGATE portal to ensure no claim is missed.

Stay Updated (H4)

RoDTEP rates and guidelines may change. Follow DGFT notifications and Customs circulars for the latest updates.

Use Digital Tools

Utilise export management software to streamline documentation and refund calculations

 Who is eligible for the RoDTEP scheme?

All exporters, including merchant exporters and manufacturer exporters, are eligible for RoDTEP benefits.

How are RoDTEP refunds issued?

Refunds are issued as e-scrips in the ICEGATE portal. These can be used to pay duties or traded with other importers.

Are all products covered under the RoDTEP scheme?

No, certain products, such as steel and pharmaceuticals, are excluded. Refer to the DGFT list for clarity.

How can I track my RoDTEP claim?

You can track your claims and refund status on the ICEGATE portal.

Can I transfer RoDTEP e-scrips?

Yes, e-scrips are transferable and can be sold to other businesses.

The RoDTEP scheme is a significant boost for Indian exporters, helping them compete globally by reducing costs. By understanding the applicable rates, accurately calculating refunds, and staying updated with DGFT notifications, you can maximise your RoDTEP benefits.

Start leveraging the RoDTEP scheme today and ensure you don’t miss out on the refunds that can enhance your profitability.