Customs and foreign trade · Imports, exports and customs
What are RoDTEP and duty drawback for exporters?
Short answer
Duty drawback refunds customs duty paid on imported inputs used in exports, at all-industry rates or a brand rate. RoDTEP refunds taxes built into export prices that are not refunded otherwise, such as VAT on fuel and electricity duty, as transferable e-scrips. Both are claimed in the shipping bill. RoDTEP now runs to 31 December 2026 for all exporters, including advance authorisation holders, EOUs and SEZs.
Duty drawback
| All Industry Rate (AIR) | Brand rate | |
|---|---|---|
| What | A rate fixed for each tariff item in the drawback schedule, as a percentage of FOB value, often with a cap per unit | A rate fixed for an individual exporter, based on actual duties paid |
| When | Default for most exports | When AIR is not notified, or is less than 80% of the duties actually paid |
| How | Claim it in the shipping bill; credited to the exporter's bank account | Apply to the jurisdictional customs officer with cost data |
Drawback is reduced or denied if export proceeds are not realised within the time allowed under FEMA, or the goods are exported under certain schemes.
RoDTEP (Remission of Duties and Taxes on Exported Products)
- Refunds embedded taxes that GST and drawback do not: VAT on fuel used in transport and production, electricity duty, mandi tax, stamp duty on export documents, and similar levies.
- Rates are notified as a percentage of FOB value, with caps, in Appendix 4R (domestic tariff area exporters) and Appendix 4RE (advance authorisation holders, EOUs and SEZs).
- Claim it by making a declaration in the shipping bill. After export, the claim is processed and the benefit is issued as an e-scrip in the exporter's ICEGATE ledger.
- An e-scrip can be used to pay basic customs duty on imports, or sold to another importer.
- Status: by DGFT Notification 41/2026-27, RoDTEP continues until 31 December 2026, at the rates in force on 30 September 2026, for exports from the domestic tariff area, advance authorisation holders, EOUs and SEZs.
Both together
An exporter can generally claim AIR drawback and RoDTEP on the same shipment, because they cover different taxes. Some goods and categories are excluded from RoDTEP, such as goods exported under certain schemes, re-exports and restricted items. Check the appendix for your tariff item.
Practical points
- Get the shipping bill declarations right at the time of export; missing claims are hard to add later.
- Track export realisation in the bank's system; unrealised exports lead to recovery.
- Use or sell e-scrips before they expire.
Legal basis
- Section 75, Customs Act, 1962; Customs, Central Excise Duties and Service Tax Drawback Rules, 2017
- Foreign Trade Policy 2023, paragraph 4.54 (RoDTEP); Appendices 4R and 4RE
- DGFT Notification 41/2026-27, 30 September 2026
Official sources
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