RoDTEP vs Duty Drawback: What Indian Exporters Can Claim

RoDTEP vs duty drawback: what exporters can claim

For exporters5 min readUpdated 4 October 2026

The short answer

RoDTEP refunds central, state and local taxes embedded in exported goods that aren't refunded elsewhere, at a rate set per product as a percentage of FOB value. Duty drawback refunds customs and central excise duties paid on inputs used in exports. They are separate schemes with separate rates and eligibility conditions, so check which apply to your product.

Key takeaways

RoDTEP covers embedded taxes that other schemes don't refund; drawback covers duties paid on inputs.

Both are set per product (HSN code) and change by notification.

Whether both can be claimed on the same shipment depends on the product and the scheme conditions.

Model incentives as a range in your price, and confirm the current rate before you quote.

The two schemes side by side

RoDTEP and duty drawback compared (confirm current rates and conditions)
	RoDTEP	Duty drawback
What it returns	Central, state and local taxes and levies embedded in the product and not refunded through other mechanisms	Customs and central excise duties paid on inputs used to make the exported goods
How the rate is set	A percentage of FOB value per tariff item, with caps for some items	All Industry Rate (AIR) per tariff item, or a Brand Rate based on actual input duties
How it is claimed	Declared on the Shipping Bill and credited as an electronic duty credit scrip	Declared on the Shipping Bill and paid as a refund once the export is complete
Changes	Rates and eligibility are notified and revised	AIR schedules are notified and revised

Other schemes to know about

RoSCTL: a separate scheme for state and central taxes and levies on apparel and made-ups.

Advance Authorisation and similar schemes: let eligible exporters import inputs without paying duty, subject to export obligations.

GST refunds: exports are zero-rated, and exporters can claim input tax credit refunds under GST rules.

How to price incentives into a quote

Start from your cost to FOB: ex-factory cost, packing, inland freight and documentation. Add the incentive rates that apply to your product as a percentage of FOB value, and then solve for the price that leaves your target margin. Because incentive rates change, quote with a margin of safety and don't count on a rate you haven't confirmed. The export price calculator does this arithmetic with the rates you enter.

Eligibility and claiming

Each scheme has its own conditions: who qualifies, which products and which kinds of export, and how and when to claim. Whether you can claim more than one scheme on the same shipment depends on the product and the rules in force. Confirm against the current notifications or with your customs house agent, and keep documentation ready, because incentives are claimed on the Shipping Bill.

Questions answered

What is the difference between RoDTEP and duty drawback?

RoDTEP returns embedded central, state and local taxes that aren't refunded elsewhere, as a percentage of FOB value per product. Duty drawback returns customs and central excise duties paid on the inputs used in the exported goods. They have separate rates and eligibility conditions.

Can I claim both RoDTEP and duty drawback?

It depends on the product and the conditions of each scheme at the time. Don't assume both apply. Check the current notifications or ask your customs house agent before building both into a price.

How is the RoDTEP rate decided?

It is set per tariff item by notification, as a percentage of FOB value, and some items have a value cap. Rates are revised from time to time, so look up the current rate for your product's HSN code.

How do I include export incentives in my price?

Work out your cost to FOB, add the incentive percentages as income on FOB value, and solve for the price that gives your target margin. Use the export price calculator, and confirm the current incentive rates before you quote.