The RoDTEP scheme — one of India’s main export incentive mechanisms — has been extended once again, this time to 31 December 2026. For exporters, the practical takeaway is simple: nothing about the rates or process has changed, but the deadline that governs eligible shipments has moved, and missing a declaration or a Let Export Order date can still mean losing the benefit entirely for that shipment.
RoDTEP Extension 2026: Key Facts
| Item | Position as of 1 October 2026 |
|---|---|
| Scheme Name | Remission of Duties and Taxes on Exported Products (RoDTEP) |
| Governing Bodies | DGFT notifies rates; CBIC administers claims through ICEGATE |
| Parent Policy | Foreign Trade Policy (FTP) 2023, Paragraph 1.02, under the FT(D&R) Act, 1992 |
| Legal Basis for Extension | DGFT Notification No. 41/2026-27, dated 30 September 2026 |
| Who It Covers | Exporters of notified goods from DTA, AA, SEZ, and EOU units |
| Benefit Structure | A percentage of FOB value, credited as an e-scrip, subject to a per-unit cap |
| Rate Range | 0.01% to 3.9% of FOB value under Appendix 4R |
| Validity | Up to 31 December 2026 |
| Where to Claim | Declared on the shipping bill, processed via the e-scrip module on ICEGATE |
Why This Extension Matters More Than Previous Ones
The scheme’s budget has been cut sharply. According to budget documents, RoDTEP allocation stood at ₹18,232.50 crore in the Revised Estimate for 2025-26, but has been reduced to ₹10,000 crore for 2026-27 — roughly a 45% cut for the same pool of exporters.
A smaller budget means less margin for compliance mistakes. An incorrect HS code, a missed RoDTEP declaration, or a late Annual RoDTEP Return now carries a proportionally higher cost than it did a year ago, since there is less room in the system to absorb errors.
What Is RoDTEP?
RoDTEP is an export remission scheme that refunds embedded central, state, and local taxes on exported goods — taxes that aren’t refunded through any other mechanism, such as electricity duty, fuel VAT, and mandi tax. It is administered jointly by DGFT and CBIC under Foreign Trade Policy 2023.
RoDTEP replaced the Merchandise Exports from India Scheme (MEIS) from 1 January 2021 and was specifically designed to be WTO-compliant, since it refunds taxes actually incurred rather than offering a flat export subsidy.
RoDTEP operates alongside two related mechanisms:
- Duty Drawback refunds customs duty paid on imported inputs.
- RoSCTL (Rebate of State and Central Taxes and Levies) covers apparel and made-ups under HS Chapters 61, 62, and 63 — these chapters receive RoSCTL instead of RoDTEP.
Rates are published in two schedules: Appendix 4R for DTA exports, and Appendix 4RE for exports by AA holders, SEZ units, and EOUs. Both are available on the DGFT portal under Regulations → RoDTEP.
How Much RoDTEP Do Exporters Actually Get?
RoDTEP pays whichever is lower: a percentage of FOB value, or the applicable per-unit cap. CBIC Notification No. 76/2021-Customs (N.T.) adds a further restriction — the value base is capped at 1.5 times the market price of the goods where that figure is lower than FOB.
There is no one-time or setup benefit under RoDTEP. It is purely a recurring, shipment-by-shipment credit, earned only when the declaration is correctly made.
RoDTEP Rate Table 2026: Appendix 4R vs Appendix 4RE
| Sector | HS Code | Product | Unit | 4R Rate | 4R Cap (₹/unit) | 4RE Rate | 4RE Cap (₹/unit) |
|---|---|---|---|---|---|---|---|
| Marine | 03061720 | Vannamei shrimp, frozen | kg | 3.0% | 42 | 1.9% | 25.2 |
| Marine | 03061790 | Other frozen shrimps/prawns | kg | 3.0% | 42 | 1.9% | 25.2 |
| Agriculture | 07011000 | Seed potatoes | kg | 3.9% | 1 | 2.4% | 0.6 |
| Agriculture | 07020000 | Tomatoes, fresh/chilled | kg | 3.9% | 1.1 | 2.4% | 0.7 |
| Agriculture | 08013220 | Cashew kernel, whole | kg | 2.4% | 8.5 | 1.5% | 5.1 |
| Spices | 09041190 | Pepper, not crushed | kg | 0.9% | No cap | 0.6% | No cap |
| Rice | 10063020 | Basmati rice | kg | 0.9% | No cap | 0.6% | No cap |
| Textiles | 52052410 | Cotton yarn, grey | kg | 3.4% | 10 | 2.3% | 6.8 |
| Textiles | 52103110 | Shirting fabrics | sq m | 3.5% | 8.5 | 2.6% | 2.0 |
| Carpets | 57011010 | Hand-made carpets, wool | sq m | 2.5% | 28.4 | 1.6% | 17.0 |
| Footwear | 64035111 | Leather footwear, men’s | pair | 1.2% | No cap | 0.8% | No cap |
| Stone | 68029100 | Marble, travertine articles | kg | 0.9% | No cap | 0.6% | No cap |
| Jewellery | 71131145 | Silver jewellery, studded | kg | 0.01% | No cap | 0.006% | No cap |
| Engineering | 84137010 | Water pumps | unit | 0.9% | No cap | 0.6% | No cap |
| Auto Parts | 87089900 | Motor vehicle parts, other | kg | 0.5% | No cap | 0.3% | No cap |
Based on Appendix 4R (version effective 10 October 2024) and Appendix 4RE. Tariff lines were realigned under DGFT Notification No. 15/2026-27, effective 1 May 2026, for certain products. Always confirm your exact 8-digit line on the DGFT portal before pricing an order.
Worked Example: When the Cap Decides the Payout
Take cotton grey yarn (HS 52052410) at a 3.4% rate with a ₹10/kg cap under Appendix 4R:
- Ship 4,000 kg at an FOB value of ₹10 lakh → the rate calculation gives ₹34,000; the cap allows up to ₹40,000 → you receive ₹34,000.
- Ship the same 4,000 kg at ₹14 lakh FOB → the rate calculation now gives ₹47,600; but the cap still limits it to ₹40,000 → you receive ₹40,000.
This illustrates a point many exporters miss: a higher invoice price does not automatically translate into a higher RoDTEP benefit once the per-unit cap is reached.
What Exactly Changed With This Extension
Only the end date has moved. DGFT Notification No. 41/2026-27 pushes the RoDTEP sunset from 30 September 2026 to 31 December 2026. Rates, caps, and conditions remain unchanged.
| Parameter | Previous Position | Current Position | What It Means |
|---|---|---|---|
| Scheme end date | 30 September 2026 | 31 December 2026 | Shipments up to 31 December 2026 remain eligible |
| Length of extension | Six months (Apr–Sep 2026) | Three months (to Dec 2026) | Shorter windows; plan pricing quarter by quarter |
| Rates and caps | As in force on 31 March 2026 | Unchanged from 30 September 2026 | No new rate list to download for this round |
| Units covered | General wording in earlier notification | DTA, AA, SEZ, EOU named explicitly | AA/SEZ/EOU exporters have clear written cover to 31 Dec 2026 |
| 50% rate cut episode | Rates halved from 23 Feb 2026 (except HS Ch. 1–24) | Full rates restored from 23 March 2026 | Shipments between 23 Feb–22 Mar 2026 stay at the reduced rate |
| Tariff line alignment | Older 8-digit lines | New lines added from 1 May 2026 | Use updated HS codes or risk a claim mismatch |
| Annual RoDTEP budget | ₹18,232.50 crore (RE 2025-26) | ₹10,000 crore (2026-27) | Smaller pool; further rate cuts are possible |
Four Facts Where Outdated Information Is Still Circulating
Several widely shared sources still carry details that no longer match the official position. It’s worth verifying each of these before relying on them:
- The March 2026 restoration date. DGFT Notification No. 66/2025-26 initially set full-rate restoration from 23 February 2026, but a corrigendum later moved this to 23 March 2026. Shipments with an LEO between 23 February and 22 March 2026 are still subject to the reduced rate.
- E-scrip validity. Many guides still state one year. CBIC Circular No. 21/2022-Customs confirms that e-scrip validity was extended to two years from the date of creation in the ledger, following Notification No. 79/2022-Customs (N.T.).
- The RoDTEP rate range. Some sources quote 0.3% to 4.3%. Based on the current Appendix 4R schedule, the highest rate is 3.9% (for items like seed potatoes and tomatoes), while gems and jewellery lines under Chapter 71 can run as low as 0.01%.
- The export realisation period. Content published before 22 September 2026 often states a 15-month window for payment realisation on exports from 1 October 2026. Later reports indicate the period was kept at nine months following an RBI amendment — this should be confirmed against the current text on rbi.org.in.
Who Is Eligible for RoDTEP Through 31 December 2026
An exporter qualifies for RoDTEP when all of the following conditions are met:
- The Importer Exporter Code (IEC) is active and updated on the DGFT portal.
- The product’s 8-digit HS code appears in Appendix 4R (DTA) or Appendix 4RE (AA, SEZ, EOU).
- The goods are of Indian origin — both merchant exporters and manufacturer exporters can claim.
- The export is routed through an EDI (electronic data interchange) port.
- The RoDTEP declaration is made on the shipping bill before the LEO is issued.
- Export proceeds are realised within the period allowed by the RBI.
There is no minimum turnover requirement and no need for Udyam registration. However, keeping your Registration-cum-Membership Certificate (RCMC) active is still advisable, since many other FTP benefits require it.
Who Is NOT Eligible
Under Paragraph 4.55 of FTP 2023, the following categories cannot claim RoDTEP:
- Export of imported goods under paragraph 2.46 of FTP (import for re-export)
- Trans-shipment goods made in a third country passing through India
- Products subject to a Minimum Export Price or export duty
- Products restricted or prohibited under Schedule 2 of the ITC (HS) Export Policy
- Deemed exports
- Supplies from DTA units to SEZ or FTWZ units
- Goods made wholly or partly in a customs bonded warehouse under Section 65 of the Customs Act, 1962
- Apparel and made-ups under HS Chapters 61, 62, and 63 (covered by RoSCTL instead)
Note: AA, SEZ, and EOU exports were originally excluded at launch but were restored from 1 June 2025 under DGFT Notification No. 11/2025-26, at Appendix 4RE rates. Notification No. 41/2026-27 continues this cover through 31 December 2026.
Edge Cases Exporters Should Know About
Shipment on 30 September vs 1 October 2026
Both dates are covered at the same rate — there is no gap. Notification No. 74/2025-26 covered exports to 30 September 2026, and Notification No. 41/2026-27 continues coverage from there to 31 December 2026 at the rates applicable on 30 September 2026.
Shipping Bill Filed in December 2026, LEO Issued in January 2027
This is the riskiest scenario. Customs systems generally treat the LEO date, not the filing date, as the date of export for incentive purposes. If no further extension is notified, an LEO dated 1 January 2027 may earn nothing under the current notification. Exporters should push December cargo to secure LEO on or before 31 December 2026.
Exporters With Both DTA Production and an Advance Authorisation
Goods exported against the AA earn the (typically lower) Appendix 4RE rate, while goods made from duty-paid inputs outside the AA earn the Appendix 4R rate. Keeping separate shipping bills for each ensures the correct rate is applied; deemed exports under AA remain excluded regardless.
Shipments During the 50% Rate Cut Window
A shipment with LEO between 23 February and 22 March 2026 earned only half the notified rate (except for ITC HS Chapters 1–24). The corrigendum to Notification No. 66/2025-26 restored full rates only from 23 March 2026 onward, and this difference cannot be claimed retroactively.
How to Claim RoDTEP: Stage by Stage
Stage 1: Before You Apply
- Update your IEC on the DGFT portal (the annual IEC updation window runs from 1 April to 30 June).
- Register on ICEGATE with a Class 3 Digital Signature Certificate (DSC) linked to the IEC.
- Register your AD code (your bank’s port-linking code) at every port you ship from.
- Confirm your 8-digit HS code against Appendix 4R or 4RE and match it to your invoice description.
Stage 2: Filing the Shipping Bill
- Provide your Customs Broker with the correct 8-digit HS code, the RoDTEP scheme declaration, and the applicable schedule (4R or 4RE).
- Ensure the RoDTEP claim is marked at the item level for every eligible product, not just the first line.
- Check that the quantity and unit (kg, unit, pair, sq m) match the schedule’s unit exactly — a mismatch can distort the cap calculation.
- Review the checklist carefully before approval; this is the last opportunity to catch a missing declaration.
Stage 3: After Filing
- Once the LEO is issued, the shipping line files the Export General Manifest (EGM).
- Customs processes the claim and generates a scroll (the approved list of shipping bills and amounts) in your ICEGATE account.
- Create an e-scrip from the scroll within one year of the scroll date; otherwise the system generates it automatically, port by port.
- Use the e-scrip to pay Basic Customs Duty on imports, or transfer it to another IEC holder.
The Two Irreversible Mistakes
An e-scrip is valid for two years from its creation date (per CBIC Circular No. 21/2022-Customs). Unused credit lapses permanently after that and cannot be regenerated. Additionally, exporters whose RoDTEP credit exceeds ₹1 crore in a financial year must file the Annual RoDTEP Return (ARR) under Paragraph 4.94 of the Handbook of Procedures 2023 — failing to do so can result in denial of future benefits.
The two mistakes that cannot be fixed after the fact: a missed shipping bill declaration, and a lapsed e-scrip.
RoDTEP by Sector: Practical Pointers
Engineering Goods
Example: valves (HS 84818090) at 0.9% under Appendix 4R. Exporters shipping multiple items on one bill often mark RoDTEP on only some lines — each item requires its own declaration.
Textiles
Example: cotton grey yarn (HS 52052410) at 3.4%, capped at ₹10/kg. Garments under Chapters 61 and 62 don’t earn RoDTEP at all — they fall under RoSCTL, so mills selling both yarn and garments must split their claims by chapter.
Handicrafts and Stone
Example: marble and stone articles (HS 68029100, 68029900) at 0.9%. Inlay work and stone tabletops can fall under different lines, so using the wrong one can mean the wrong rate — or none at all.
Food and Agriculture
Example: basmati rice (HS 10063020) at 0.9%. ITC HS Chapters 1–24 retained full rates during the February 2026 cut. Products under a Minimum Export Price or export duty, however, lose RoDTEP eligibility entirely.
Marine and Seafood
Example: frozen Vannamei shrimp (HS 03061720) at 3%, capped at ₹42/kg. For 10,000 kg at ₹60 lakh FOB, the rate calculation gives ₹1.8 lakh while the cap allows up to ₹4.2 lakh — so the exporter receives ₹1.8 lakh. Seafood units operating under AA or EOU status earn only the lower 4RE rate of 1.9%, capped at ₹25.2/kg.
What RoDTEP Will Not Do
- It will not pay cash directly into your bank account — benefits come only as an e-scrip, usable for import duty payment or transferable to another IEC holder.
- It will not pay on goods whose HS code has no matching line in Appendix 4R or 4RE — the rate is nil regardless of how strong the underlying case is.
- It offers no guarantee beyond 31 December 2026 — Notification No. 41/2026-27 covers only up to that date, so 2027 orders should not be priced assuming automatic continuation.
Frequently Asked Questions
Is RoDTEP extended after 30 September 2026? Yes. DGFT Notification No. 41/2026-27, dated 30 September 2026, extends the scheme to 31 December 2026 with rates and caps unchanged.
Will RoDTEP continue after 31 December 2026? No fresh extension has been notified yet beyond this date. Exporters should check the DGFT notifications page closer to the deadline rather than assume automatic continuation.
Have RoDTEP rates changed from 1 October 2026? No. Rates and value caps remain exactly as they stood on 30 September 2026.
How does RoDTEP money actually reach the exporter? As an e-scrip credited to the exporter’s ICEGATE ledger, which can be used to pay Basic Customs Duty on imports or transferred to another IEC holder — not as a direct cash transfer.
What is the validity of a RoDTEP e-scrip? Two years from the date it is created in the ledger, as confirmed by CBIC Circular No. 21/2022-Customs.
Can I claim RoDTEP and Duty Drawback together? RoDTEP and Duty Drawback cover different components (embedded taxes versus customs duty on imported inputs), so the two can generally apply to the same export, subject to the specific scheme conditions for each.
Can SEZ and EOU units claim RoDTEP in 2026? Yes. Their eligibility was restored from 1 June 2025 under Notification No. 11/2025-26, at Appendix 4RE rates, and this continues through 31 December 2026 under the current extension.
Can a merchant exporter claim RoDTEP? Yes, both manufacturer exporters and merchant exporters can claim, provided the goods are of Indian origin and all other eligibility conditions are met.
What happens if export payment is not received in time? RoDTEP credit can be recovered if export proceeds are not realised within the period allowed by the RBI, so timely realisation is essential to retain the benefit.
Who needs to file the Annual RoDTEP Return (ARR)? Exporters whose RoDTEP credit exceeds ₹1 crore in a financial year must file the ARR under Paragraph 4.94 of the Handbook of Procedures 2023.