RoDTEP Services & Scrip Management

What is the RoDTEP Scheme?

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme was introduced by the Ministry of Commerce & Industry and notified by the Department of Revenue, Ministry of Finance. It operates in strict alignment with World Trade Organization (WTO) principles to ensure Indian exports do not bear the burden of domestic taxes.

The scheme rebates unrefunded central, state, and local duties, taxes, and levies embedded in the production and distribution of exported goods that are not otherwise refunded through GST input tax credits or customs duty drawback (e.g., VAT and excise on fuel used in transportation, electricity duties, stamp duties, and mandi taxes).

How RoDTEP Operates via ICEGATE

Unlike legacy schemes that issued physical trade scrips, the RoDTEP scheme operates through a paperless, end-to-end digital mechanism on the Indian Customs Electronic Gateway (ICEGATE 2.0):

1. Shipping Bill Declaration: Exporters must explicitly declare claim intent on every export shipping bill using code RODTEPY for every eligible item line.
2. Customs Scroll Generation: Once export goods achieve 'Export General Manifest' (EGM) clearance, customs generates automated electronic credit scrolls.
3. Electronic Duty Credit Ledger: Exporters must create an active Electronic Duty Credit Ledger on ICEGATE authenticated via a Class 3 Digital Signature Certificate.
4. Scrip Generation & Utilization: Accrued credits are converted into electronic scrips which can be used to pay Basic Customs Duty (BCD) on imported goods, or transferred electronically to other importers for cash monetization.

Sectoral Coverage & Rebate Rates

RoDTEP rates generally range from 0.5% to 4.3% of the Free-on-Board (FOB) export value (with value caps per unit of measure) across diverse sectors:

• Textiles & Apparels: Yarns, fabrics, ready-made garments, and home textiles (under RoSCTL/RoDTEP).
• Engineering Goods: Steel fabrications, industrial pumps, castings, machine tools, and auto parts.
• Chemicals & Plastics: Dyes, pigments, basic inorganic chemicals, polymers, and packaging articles.
• Agricultural Commodities: Marine products, rice, processed food products, and spices.

Prerequisites for Claiming RoDTEP

• Active IEC & AD Code: Registered Importer-Exporter Code and verified bank AD code port registrations.
• ICEGATE User ID: Registered and authenticated user profile on the ICEGATE 2.0 customs gateway.
• Class 3 DSC Token: Cryptographic token to authenticate ledger creation and scrip transfers.
• Proper Shipping Bill Filing: Ensuring customs house agents (CHAs) marked RODTEPY during initial document submission.

Role of Ocean Technovative

Ocean Technovative creates your ICEGATE electronic duty credit ledger, reconciles pending shipping bill scroll scrolls against customs databases, generates electronic duty credit scrips before statutory expiry, and guides your financial team through the electronic transfer process.