RoDTEP and Duty Drawback — Government Refunds Every Exporter Is Entitled To
A plain-English explanation of RoDTEP and Duty Drawback — what they are, how much you get, how to claim them correctly, and why thousands of Indian exporters leave this money unclaimed every year.
RoDTEP and Duty Drawback are government refunds paid to Indian exporters after every shipment. Together they can add up to 2–10% of your FOB export value — real money, automatically earned, requiring only that your CHA files the Shipping Bill correctly. Yet a significant number of first-time exporters either don't know about these schemes or file the wrong Shipping Bill type and forfeit the claims entirely.
The two main export refund schemes
Scheme 1
RoDTEP
Remission of Duties and Taxes on Exported Products. Refunds embedded state and central taxes in your production process that are not otherwise refunded — electricity duty, mandi tax, fuel in transport, etc.
Rate: 0.01% – 4.3% of FOB value (HSN-specific)
Form: Transferable scrips on ICEGATE
Use: Pay import duties or sell in open market
Scheme 2
Duty Drawback
Refunds customs duties paid on imported inputs used in manufacturing your exported product. Also covers central excise duty paid on inputs. Paid as cash directly into your bank account.
Rate: 1% – 10%+ of FOB value (product-specific)
Form: Direct bank credit (cash)
Timeline: 1–3 months after EGM filing
How RoDTEP works — step by step
Your CHA files the Shipping Bill on ICEGATE
The Shipping Bill type must be 'SB005' (with RoDTEP claim) — not the generic SB003. If your CHA files the wrong type, you forfeit RoDTEP for that shipment.
Cargo ships and EGM is filed
After the vessel or aircraft departs, the carrier files the Export General Manifest. This confirms the cargo actually shipped.
ICEGATE processes the RoDTEP claim
The RoDTEP amount is calculated based on your product's HSN code and the rate in the official schedule. Most claims are processed automatically within 2–4 weeks.
Scrip issued on ICEGATE
A transferable e-scrip is credited to your ICEGATE account. You can use it to pay basic customs duty on imports, or sell it to an importer at a 1–3% discount.
Sample RoDTEP rates by product category
Rates vary by 8-digit HSN code. These are indicative figures — your exact rate depends on your specific HSN.
| Product Category | Typical RoDTEP Rate | Typical Drawback Rate |
|---|---|---|
| Textiles & Garments | 0.5% – 1.7% | 1% – 3% |
| Engineering goods / Machinery | 0.5% – 1.5% | 1% – 5% |
| Chemicals | 0.1% – 2% | 0.5% – 3% |
| Agriculture & Food | 0.5% – 4.3% | Varies |
| Gems & Jewellery | 0.01% – 0.3% | Low |
| Pharmaceuticals | 0.5% – 2% | 1% – 4% |
| Auto Parts | 0.5% – 2% | 2% – 6% |
Why thousands of exporters miss these refunds
Wrong Shipping Bill type filed
If your CHA files Shipping Bill type SB003 instead of SB005, no RoDTEP claim is generated. Many CHAs use the generic type out of habit. Ambeza always pre-selects the correct type.
EGM not filed or delayed
RoDTEP is triggered only after EGM filing confirms the shipment departed. If the airline or shipping line delays EGM, claims are delayed. Your CHA should track this.
FIRC not collected
Duty Drawback disbursement requires proof of foreign payment. If you don't collect your FIRC from the bank, the drawback cannot be processed.
Incorrect HSN code
Using a broad or wrong HSN code means an incorrect RoDTEP rate is applied — usually lower than your actual entitlement. A 1-digit HSN error can cost you thousands of rupees per shipment.
No one tracking the claims
Many exporters assume the money will arrive automatically. In practice, claims often stall due to mismatches between the Shipping Bill and EGM. Active follow-up is required.
Frequently asked questions
Q: Can I claim both RoDTEP and Duty Drawback on the same shipment?
Yes. RoDTEP and Drawback cover different taxes and are separate claims. You can — and should — claim both on every eligible shipment.
Q: How long does it take to receive Duty Drawback?
Typically 1–3 months after EGM filing, provided your FIRC is submitted and there are no document queries. Ambeza tracks all claims and follows up on delays.
Q: What is a RoDTEP scrip and how do I use it?
A RoDTEP scrip is an electronic credit on ICEGATE. You can use it to pay basic customs duty on imports, or transfer/sell it to another importer. Most exporters who don't import sell their scrips at a 1–3% discount through a licensed broker.
Q: What if my product is not covered under RoDTEP?
Some product categories are excluded — pharmaceutical products exported under advance authorisation, SEZ units, etc. Check the official RoDTEP schedule on DGFT for your specific HSN.
Ambeza tracks RoDTEP and Drawback for every shipment
We pre-select the correct Shipping Bill type, monitor EGM filing, and follow up on all pending claims. You don't leave a single rupee on the table.
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