The Department of Commerce extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme till 31 December 2026 through a notification dated 30 September 2026. On the same day, the Ministry of Textiles extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel and made-ups for the period 1 October to 31 December 2026 at existing rates. Both extensions aim to keep Indian exports price competitive as freight, insurance and war risk costs have risen due to continued disruptions across the Gulf and wider West Asia maritime corridor.
What Is the RoDTEP Scheme?
The RoDTEP scheme stands for Remission of Duties and Taxes on Exported Products. It is India’s flagship export remission scheme that refunds hidden Central, State and local duties and taxes embedded in exported goods when those taxes have not been refunded under any other mechanism. The refund is not paid in cash. It is issued as a transferable electronic duty credit scrip that can be used to pay Basic Customs Duty on imports.
The Department of Commerce notified RoDTEP with effect from 1 January 2021 under Chapter 4 of the Foreign Trade Policy. Detailed guidelines and rates were issued on 17 August 2021 based on the recommendations of a committee chaired by Dr. G. K. Pillai, former Commerce and Home Secretary. RoDTEP replaced the Merchandise Exports from India Scheme (MEIS). The United States had challenged MEIS at the World Trade Organization as a prohibited export subsidy linked directly to export performance. RoDTEP was designed to be compliant with World Trade Organization rules because it only remits taxes that are already borne on inputs and are not otherwise credited, instead of giving an extra incentive on export value.
RoDTEP covers duties such as mandi tax, electricity duty, stamp duty on export documents, petroleum taxes used in transport and other prior stage cumulative indirect taxes. It does not refund duties already exempted, remitted or credited under schemes like GST or duty drawback. Rates are notified as a percentage of the Free on Board (FOB) value, which is the value of goods at the time they are loaded for export, with a per unit value cap for many products. The current schedule typically ranges from 0.01% to 4.3% of FOB value across more than 8,500 tariff lines. The detailed product wise schedule is published as Appendix 4R for Domestic Tariff Area units and Appendix 4RE for Advance Authorisation holders, Special Economic Zone units and Export Oriented Units.
What Is the RoSCTL Scheme?
The RoSCTL scheme stands for Rebate of State and Central Taxes and Levies. It is a dedicated export remission scheme for textiles that refunds embedded State and Central taxes on exports of apparel, garments and made-ups which are not refunded through any other route. The scheme is based on the principle of zero rating of exports, which means exported goods should not carry the burden of domestic taxes.
The Ministry of Textiles has operated RoSCTL since 7 March 2019. It applies only to three chapters of the Customs Tariff. Chapter 61 covers knitted apparel such as T-shirts and sweaters, Chapter 62 covers woven apparel such as shirts and trousers, and Chapter 63 covers made-ups such as bed linen, blankets, curtains and bags. All other textile products, such as yarn and fabric, fall under RoDTEP. This separation avoids double benefits on the same product.
RoSCTL rebates taxes such as State value added tax on fuel used in transport, mandi tax, duty on electricity, stamp duty and other levies on inputs. Like RoDTEP, the benefit is issued as a transferable duty credit scrip through an electronic ledger in the Customs system. The scrip is issued without insisting on realisation of export proceeds. During 2025-26, the scheme benefited more than 15,400 exporters across over 444 districts, with mostly micro, small and medium enterprises. This wide reach matters because apparel and made-ups are labour intensive and provide large scale employment, especially for women workers.
RoDTEP vs RoSCTL vs Duty Drawback
Exporters often search for the difference between RoDTEP, RoSCTL and duty drawback. All three return taxes to exporters. They differ in coverage, form of benefit and administering rules. Duty drawback means a cash refund of customs and central excise duties paid on imported inputs used to make exported goods. It is paid to the exporter’s bank account and is not transferable. RoDTEP and RoSCTL give transferable duty credit scrips that can be used to pay Basic Customs Duty or sold to another importer holding a valid Importer Exporter Code.
The Directorate General of Foreign Trade decides policy, eligibility and the notified rate schedule for RoDTEP and RoSCTL. The Central Board of Indirect Taxes and Customs processes claims on the shipping bill through ICEGATE, the Indian Customs Electronic Gateway, and maintains the electronic credit ledger. RoDTEP and duty drawback can be claimed together on the same shipment for different tax heads. They are not alternatives where only one must be chosen.
| Feature | RoDTEP | RoSCTL | Duty Drawback |
|---|---|---|---|
| Full form | Remission of Duties and Taxes on Exported Products | Rebate of State and Central Taxes and Levies | No full form, it is a cash refund of duties on inputs |
| Coverage | All eligible export goods except apparel under Chapters 61, 62 and made-ups under Chapter 63 | Only apparel under Chapters 61 and 62 and made-ups under Chapter 63 | Eligible export goods with duty paid imported inputs |
| What it refunds | Embedded non creditable Central, State and local taxes | Embedded State and Central taxes not covered elsewhere | Customs duty on imported inputs and excise incidence |
| Form of benefit | Transferable electronic duty credit scrip | Transferable electronic duty credit scrip | Cash credited to bank account |
| Rate basis | Percentage of FOB value with value caps in Appendix 4R and 4RE | Notified rates and caps for garment and made-up lines | Duty drawback schedule rates |
| Nodal policy body | Department of Commerce | Ministry of Textiles | Department of Revenue |
Extension Till 31 December 2026: What Has Changed?
The Department of Commerce issued Notification No. 41/2026-27 dated 30 September 2026 to continue RoDTEP till 31 December 2026. The extension applies to exports made by Domestic Tariff Area (DTA) units, Advance Authorisation holders, Special Economic Zone (SEZ) units and Export Oriented Units (EOUs). DTA units are normal domestic factories selling in India and abroad. Advance Authorisation holders are exporters allowed duty free import of inputs that are physically built into the export product. SEZ units and EOUs are units set up under special export oriented frameworks. The existing RoDTEP rates and value caps as applicable on 30 September 2026 will continue unchanged during the extended period.
The Ministry of Textiles separately extended RoSCTL for exports of apparel, garments and made-ups for three months from 1 October to 31 December 2026 at existing rates and under prevailing guidelines. This follows a chain of short extensions. RoDTEP was earlier extended till 31 March 2026, then from 1 April to 30 September 2026, and now till December 2026. RoSCTL was extended till 30 September 2026 earlier this year and is now continued on the same terms. Exporters had sought a longer extension with adequate budget support. The government has kept the structure unchanged for now to provide continuity while expenditure is reviewed within the approved allocation under Para 4.54 of the Foreign Trade Policy 2023.
Why the Extension Was Needed: West Asia Disruptions and Export Support
The Department of Commerce has linked the extensions to continued geopolitical disruptions in West Asia and their impact on maritime logistics across the Gulf and adjoining regions. Tensions around the Strait of Hormuz, a narrow sea passage through which a large share of India’s Gulf trade moves, have raised freight rates, insurance premia and war related risks. Carriers have added emergency conflict surcharges and additional war risk premia. On some routes freight rates rose by nearly 90 to 100 percent during earlier phases of the Red Sea crisis. Small exporters feel this stress first because they work on thin margins and limited working capital. About 15 percent of India’s total exports move through the affected corridor, with total trade through the corridor estimated at $178.56 billion in 2024-25.
Textiles illustrate the pressure. India’s textile and apparel exports including handicrafts stood at ₹3,25,339 crore in 2025-26, up only 1.8 percent from the previous year, with ready made garments remaining the largest contributor. Growth spread across more than 100 countries, but exporters face tough competition from Bangladesh, Vietnam and other suppliers. A refund that lowers hidden taxes helps Indian sellers quote competitive prices without cutting wages or quality. For labour intensive garment units in dispersed clusters, even a small remission can decide whether an order stays in India.
Alongside RoDTEP and RoSCTL, the Department of Commerce extended timelines under Component II of RELIEF, which stands for Resilience and Logistics Intervention for Export Facilitation. RELIEF was launched on 19 March 2026 as a time bound intervention under the Export Promotion Mission (EPM) with an outlay of ₹497 crore. The Export Promotion Mission is the central export support framework with a total outlay of ₹25,060 crore for 2025-26 to 2030-31, implemented through two parts called NIRYAT PROTSAHAN for trade finance and NIRYAT DISHA for market readiness. RELIEF is implemented by ECGC Ltd., the Export Credit Guarantee Corporation of India, which provides export credit insurance. Component II encourages exporters to obtain fresh ECGC cover for upcoming shipments to specified regions with 95 percent risk coverage at pre disruption premium levels. It covers full container load, less than container load and reefer containers, excluding energy shipments, for policies obtained on or after 16 March 2026. Egypt and Jordan were later added to the eligible list, showing how the disruption zone has widened beyond the Gulf.
How Benefits Are Calculated, Claimed and Tracked
RoDTEP is calculated as a notified percentage of the FOB value of each export item, subject to a maximum rupee cap per unit where specified. The exporter must declare the intent to claim RoDTEP for each item in the shipping bill. Once the export manifest is filed, Customs processes the claim and generates a scroll, which is the sanctioned amount for those shipping bills. The exporter then logs in to ICEGATE, creates a credit ledger account using the Importer Exporter Code and digital signature, and converts the scroll into an electronic scrip. The scrip can be used to pay Basic Customs Duty or transferred in full to another Importer Exporter Code holder. It is valid for a limited period and must be tracked for expiry.
Rates are listed Harmonized System code wise in Appendix 4R and Appendix 4RE on the Directorate General of Foreign Trade portal. The schedule was aligned with changes to the Customs Tariff through the Finance Act with effect from 1 May 2026, with 142 tariff lines added and 50 lines removed. RoSCTL follows the same electronic scrip route through Customs. Its rebate continues through transferable duty credit scrips at prevailing rates and caps unless notified otherwise. Exporters can check RoDTEP scroll status, RoSCTL sanctioned status and duty drawback status on ICEGATE through the shipping bill enquiry and drawback status modules. Large claimants must also file a RoDTEP Annual Return giving product and tax details, which helps the government review rates and keep expenditure within budget. This annual review explains why rates are periodically restored, corrected or aligned rather than changed with every extension.
Key Takeaways
- The RoDTEP scheme was extended till 31 December 2026 by Notification No. 41/2026-27 dated 30 September 2026 for DTA, Advance Authorisation, SEZ and EOU exports.
- The RoSCTL scheme for apparel and made-ups was extended from 1 October to 31 December 2026 at existing rates by the Ministry of Textiles.
- RoDTEP stands for Remission of Duties and Taxes on Exported Products and has been effective since 1 January 2021 as a World Trade Organization compliant replacement for MEIS.
- RoSCTL stands for Rebate of State and Central Taxes and Levies and covers only Chapters 61, 62 and 63, while other goods fall under RoDTEP.
- RoDTEP and RoSCTL benefits are issued as transferable electronic duty credit scrips on ICEGATE for payment of Basic Customs Duty, while duty drawback is paid in cash.
- The extension is linked to RELIEF under the Export Promotion Mission, whose Component II provides 95 percent ECGC risk coverage for shipments to specified West Asia regions.
