RoDTEP vs Duty Drawback: What Each Refunds and How to Claim Both
RoDTEP and duty drawback both refund exporters, but for different taxes. How each works, how to claim both on the shipping bill, and the errors that lose the benefit.
Duty drawback refunds customs and central excise duties paid on inputs used to make exported goods. RoDTEP refunds other embedded taxes that aren't refunded any other way, such as state levies and fuel duties. Because they cover different taxes, most exporters can claim both on the same shipping bill, provided both are declared at the time of filing.
Both benefits are calculated as a percentage of the export value of each item, and both are claimed through the shipping bill. Miss the declaration and the benefit for that shipment is usually gone. That makes them a documentation issue as much as a finance one.
RoDTEP vs duty drawback at a glance
| Duty drawback | RoDTEP | |
|---|---|---|
| What it refunds | Customs duty (and certain excise) on inputs used in the export product | Embedded central, state and local taxes not refunded elsewhere, such as VAT on fuel, electricity duty and mandi tax |
| Rates | All Industry Rates (AIR) schedule, or a brand rate fixed for your product | Notified rates and value caps per tariff line (Appendix 4R / 4RE) |
| How it's paid | Credited to your bank account registered with customs | Credited as a transferable e-scrip in your ICEGATE ledger |
| How you use it | Cash | Pay basic customs duty on imports, or sell the scrip |
| Claimed on | Shipping bill, with drawback serial number | Shipping bill, with the RoDTEP declaration per item |
Can you claim RoDTEP and drawback together?
Generally, yes. Drawback covers duties on imported or domestic inputs; RoDTEP covers taxes that sit outside that system. The two are designed not to overlap, so an eligible item can carry both. Some categories are excluded from RoDTEP, and rates and caps change by notification, so check the current schedule for your HS code before you quote prices that assume the benefit.
Is RoDTEP still available in 2026?
Yes. In September 2026 the government extended RoDTEP to 31 December 2026 for eligible exports from DTA units, Advance Authorisation holders, SEZ units and EOUs, with the rates and caps in force on 30 September 2026 unchanged. The scheme has been extended in short steps, so confirm the position on the DGFT site for shipments after that date.
How to claim on the shipping bill
- Get the classification right. Both rates are linked to the 8-digit ITC(HS) code, so a wrong code means a wrong or nil benefit. See HS codes on export invoices.
- Brief your CHA. Tell your customs broker you're claiming drawback and RoDTEP, give them the drawback serial number, and ask them to make the RoDTEP declaration for every eligible item. What a CHA needs from you lists the rest.
- File the right type of shipping bill. Drawback claims go on a drawback shipping bill. See types of shipping bill.
- Make sure the bank account is registered with customs (ICEGATE) for drawback credits.
- Watch the EGM. Both claims are processed once the carrier files the export general manifest after the Let Export Order.
- Generate and use the e-scrip. RoDTEP credit lands in your ICEGATE ledger; generate the e-scrip, then use it against import duty or sell it.
Errors that cost exporters the benefit
- RoDTEP declaration missing on one or more items of the shipping bill.
- HS code on the shipping bill that doesn't match the product, triggering a query or a lower rate.
- Drawback claimed at AIR on goods made under a scheme that rules out drawback.
- Bank account not validated with customs, so drawback credits are held.
- Export proceeds not realised within the permitted time, which can lead to recovery of benefits already paid. Keep your eBRC records up to date.
Which one is worth more?
It depends on your inputs. Products with high imported content tend to get more from drawback; products with heavy domestic energy and transport costs get relatively more from RoDTEP. Because both are a percentage of the FOB value, accurate FOB values on the export invoice and shipping bill matter for both.
Frequently Asked Questions
What is the difference between RoDTEP and duty drawback?
Drawback refunds customs and certain excise duties on inputs used in exported goods. RoDTEP refunds other embedded taxes, such as state levies and fuel duties, that aren't refunded under any other scheme.
Can I claim both RoDTEP and drawback on the same shipping bill?
Generally yes, for eligible goods, as they cover different taxes. Check exclusions and the current rates for your tariff line.
How is RoDTEP received?
As a credit in your ICEGATE ledger. You generate an e-scrip, which can be used to pay basic customs duty on imports or transferred to another importer.
Is RoDTEP extended beyond December 2026?
As of October 2026 it runs to 31 December 2026. Check DGFT notifications for any later extension.
Bilexor keeps HS codes, FOB values and item descriptions consistent from the invoice to the documents your CHA files from, so the details your benefits depend on stay accurate. Get early access. Informational only, not tax advice; confirm current rates and eligibility with DGFT, your CHA or your CA.
Informational only — not legal, banking, tax, or customs advice. Always verify document and LC requirements with your bank, CHA / customs broker, and buyer before presentation.