RoDTEP in SAP: Claim and Track Credits

What is RoDTEP?

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme refunds duties, taxes and levies that are built into the cost of an exported product but are not refunded any other way: central, state and local levies, including prior-stage indirect taxes on goods and services used in production and distribution (FTP 2023, para 4.54(i)). It applies to exports from 1 January 2021 (para 4.54(x)).

The rebate is a notified rate as a percentage of FOB value, with a value cap per unit where needed, for items under the notified 8-digit HS codes. For some items a fixed amount per unit is notified instead. Rates and caps are published in Appendix 4R, and Appendix 4RE for the categories added later (para 4.54(vii)). Duties and taxes already exempted, remitted or credited cannot be claimed again (para 4.54(ii)).

Is RoDTEP still available in 2026?

Yes. DGFT Notification No. 41/2026-27 dated 30 September 2026 extends RoDTEP to 31 December 2026 for exports by DTA units, Advance Authorisation holders, SEZ units and EOUs, with the rates and value caps in Appendix 4R and 4RE as applicable on 30 September 2026 and no other change in terms. We will update this guide if the scheme is extended again.

The scheme runs within an annual budget, and rates can be recalibrated to stay within it (para 4.54(v)), so rates should be checked against the current appendix rather than assumed from last year.

How do you claim RoDTEP?

Declare the claim on the shipping bill. RoDTEP is claimed item by item in the shipping bill filed on ICEGATE. Since 1 January 2021 the exporter has to state for each item whether RoDTEP is claimed; if the claim is not declared, no RoDTEP accrues on that item.
Customs processes the claim and generates a scroll for the admissible amount.
The credit appears as an e-scrip in the exporter's RoDTEP credit ledger on ICEGATE, maintained by CBIC (para 4.54(ix); Notification 76/2021-Customs (N.T.), 23 September 2021).

The rebate is not held back until export proceeds are realised, but proceeds must be realised within the time allowed under FEMA; if they are not, the rebate is treated as never allowed and is recovered (para 4.54(viii)).

How can RoDTEP e-scrips be used?

E-scrips are held in the electronic duty credit ledger in the customs system. They can be used only to pay basic customs duty (BCD) on imports, or transferred electronically to another IEC holder who has a ledger account, which is how most exporters without enough imports sell them. Scrips are valid for two years from the date they are generated in the ledger; the period does not restart on transfer (Electronic Duty Credit Ledger Regulations, 2021, as amended by Notification 79/2022-Customs (N.T.), 15 September 2022).

What goes wrong in practice?

Missed declarations. If the item-level RoDTEP declaration is not made when the shipping bill is filed, the benefit is usually lost.
Wrong HS code or rate. The rate depends on the 8-digit HS code of each line; a mismatch between the SAP material master and the shipping bill leads to under- or over-claims.
Value caps ignored. For capped items the entitlement is the lower of the rate on FOB value and the cap per unit.
Unrealised proceeds. Claims on exports whose proceeds are not realised in time are recovered later.
Expiring scrips. Scrips not used or sold within their validity lapse.
No link back to SAP. Without a link between scrips, shipping bills and SAP sales documents, finance cannot account for the credit or see what is still pending.

How do OptiEXIM and OptiEXIMc handle RoDTEP?

Rates against HS codes. RoDTEP rates and value caps are maintained in the product's masters against each HS code. The HS code itself comes from the SAP material master, so the rate follows the material.
Declared with the pre-shipment documents. When the pre-shipment documents are created for finished goods, the RoDTEP declaration is selected from the same SAP data as the invoice.
Entitlement per line. Based on the let export order (LEO) date, the applicable rate is picked from the masters, and the RoDTEP amount is calculated line by line on the shipping bill FOB value, applying value caps where they exist.
Scrips into SAP. Using the scroll information from ICEGATE, RoDTEP scrips are created in the system and tracked until they are used to set off BCD on imports by the same IEC holder, or sold in the open market.

Frequently asked questions

What does RoDTEP stand for?

Remission of Duties and Taxes on Exported Products. It refunds embedded duties and taxes on exported goods that are not refunded under any other scheme (FTP 2023, para 4.54).

Until when is RoDTEP available?

Until 31 December 2026 for DTA, Advance Authorisation, SEZ and EOU exports, under DGFT Notification 41/2026-27, with rates unchanged.

Where are RoDTEP rates published?

In Appendix 4R of the Foreign Trade Policy, and Appendix 4RE for categories added later, as a percentage of FOB value with a value cap per unit where needed.

Can RoDTEP be claimed after the shipping bill is filed?

Normally no. The benefit has to be declared item by item when the shipping bill is filed. If the declaration was missed, adding it later depends on the stage of export clearance, the reason for the omission and the customs amendment procedure; it is not an automatic entitlement.

How long is a RoDTEP scrip valid?

Two years from the date it is generated in the ICEGATE ledger; transferring it does not extend the period.

What can RoDTEP scrips be used for?

Only for paying basic customs duty on imports. They can also be transferred electronically to another IEC holder with a RoDTEP ledger account, who can use them for the same purpose.

Can exports under Advance Authorisation claim RoDTEP?

Yes. Advance Authorisation exports are covered by the extension to 31 December 2026.

How do OptiEXIM and OptiEXIMc help with RoDTEP?

They pick the RoDTEP rate for each line from the HS code and LEO date, calculate the entitlement on the shipping bill FOB value with value caps, and track each scrip from the ICEGATE scroll until it is used for BCD or sold.

Sources

This guide summarises the rules for general information and is not legal advice. Check the current notifications before acting on them.

RoDTEP in SAP: claiming, tracking and using RoDTEP credits