---
title: "Duty drawback and RoDTEP: which applies and how to claim · SSL"
description: "Two export refunds, often claimed together: duty drawback (All Industry Rate or brand rate) returns customs duty on inputs; RoDTEP returns embedded taxes…"
url: https://safeandsecure.in/global/guides/duty-drawback-rodtep/
canonical: https://safeandsecure.in/global/guides/duty-drawback-rodtep/
updated: 2026-09-29
lang: en-IN
publisher: Safe & Secure Logistics Private Limited
---

Guide · Export incentives

# Duty drawback and RoDTEP: which applies and how to claim

Two export refunds, often claimed together: duty drawback (All Industry Rate or brand rate) returns customs duty on inputs; RoDTEP returns embedded taxes as transferable e-scrips. Eligibility, rates, how to claim on the shipping bill, and the common reasons claims get stuck.

Updated 29 Sep 2026. General guidance, not legal or tax advice: rules change by notification, so check the linked primary source before you file.

Indian exports carry two kinds of hidden tax. One is the **customs duty** paid on imported inputs and materials. The other is the **tax embedded along the way**: VAT on the diesel that ran the factory’s generator, electricity duty, mandi tax, stamp duty on export documents. GST refunds cover neither. Two schemes return them, and most exporters can claim both on the same shipping bill.

|  | Duty drawback | RoDTEP |
| --- | --- | --- |
| What it refunds | Customs duty on inputs used in the export product | Embedded central, state and local taxes not refunded elsewhere |
| Law | Section 75, Customs Act, 1962; Drawback Rules, 2017 | Foreign Trade Policy 2023; DGFT notifications |
| Administered by | CBIC (customs) | DGFT sets rates; customs runs the IT system |
| Rates | Drawback Schedule (All Industry Rates), or a brand rate | Appendix 4R, as % of FOB value, often with a per-unit cap |
| Paid as | Money to your bank account | Transferable e-scrip in the ICEGATE ledger |
| Claimed on | The shipping bill | The shipping bill |

## Duty drawback

### Section 75: drawback on manufactured exports

When imported materials go into a product that is exported, the customs duty paid on those materials is refunded as **drawback**. There are two ways to get it.

**All Industry Rate (AIR).** The Ministry of Finance publishes a **Drawback Schedule** with rates for thousands of product lines, based on the average duty incidence in the industry. It is updated from time to time. Most exporters use it: you enter the drawback serial number for each item on the shipping bill and the claim is processed automatically. Some lines also carry a per-unit cap.

**Brand rate.** If your product has no AIR, or the AIR covers less than a set share of the duty you actually paid, you can apply to the jurisdictional customs authority for a brand rate specific to your product, supported by input-output data and duty-paid invoices. It takes longer but can be worth much more for import-heavy products.

### Section 74: re-exporting imported goods

A different case: goods imported and then re-exported as they are. Under section 74, most of the import duty (98% if the goods were not used) can be claimed back if they are re-exported within the time allowed, and identified as the same goods.

### How drawback is paid

1. **Register your bank account on ICEGATE** and have it validated.
2. **Declare drawback on the shipping bill** item by item, with the correct serial number from the schedule.
3. After Let Export Order and the export manifest, the claim is processed and the money is **credited to your account**.

## RoDTEP

The **Remission of Duties and Taxes on Exported Products** scheme started on 1 January 2021, replacing MEIS. It is designed to be consistent with WTO rules: it refunds taxes actually embedded in exports, not a subsidy on top.

### Rates

Rates are listed by 8-digit tariff line in **Appendix 4R**, as a percentage of the FOB value, often with a value cap per unit. The scheme runs within a fixed budget, so DGFT revises rates and coverage by notification. Always check the current appendix rather than last year’s rate.

### Eligibility, briefly

- The product’s tariff line must be in Appendix 4R with a rate.
- Some exports are excluded, for example restricted or prohibited items, and goods exported through certain routes.
- **Apparel and made-ups** (chapters 61, 62 and 63) use **RoSCTL** instead.
- Exports by **Advance Authorisation holders, EOUs and SEZ units** have been covered through separate, time-bound notifications. Check the current DGFT notification before counting on it.

### How RoDTEP is claimed

1. On the shipping bill, **declare that you intend to claim RoDTEP** for each item.
2. After the export manifest is filed, the claim appears on ICEGATE. **Generate the scrip** in your RoDTEP ledger.
3. Use the **e-scrip** to pay basic customs duty on your own imports, or **transfer** it to another importer, which is how most exporters turn it into cash. The scrip is valid for **one year** from generation.

## Drawback or RoDTEP: which applies to you?

- **You import raw materials or components** and pay customs duty on them: drawback matters most. Check whether your product line has an All Industry Rate, and if your import content is high, whether a brand rate would pay more.
- **You buy everything in India**: drawback at the All Industry Rate may still apply, because the rate reflects the industry’s average duty incidence, not your own purchases. RoDTEP applies if your tariff line has a rate.
- **You import under Advance Authorisation** (duty-free inputs): no drawback on those inputs, because no duty was paid. RoDTEP depends on the notification in force.
- **You export apparel or made-ups**: claim RoSCTL rather than RoDTEP.

## Conditions on both

- **Realise the export proceeds** within the time the RBI allows. If the money never arrives, customs recovers the drawback and RoDTEP with interest.
- **Values must be genuine.** Over-invoicing to inflate a percentage-based claim is an offence under the Customs Act.
- **Keep the records.** Invoices, production records and duty-paid import documents may be asked for years later.

## Why claims get stuck, and the fix

| Symptom | Usual cause | Fix |
| --- | --- | --- |
| Drawback shows “pending” for weeks | Export manifest not filed, or filed with errors | Ask the shipping line or airline to file or correct the manifest |
| Drawback rejected | Bank account not validated on ICEGATE | Re-register and validate the account |
| No RoDTEP scrip to generate | RoDTEP declaration missing from the shipping bill | Declarations are hard to add after the event; build them into your broker’s checklist |
| Lower RoDTEP than expected | Per-unit cap applied, or the rate was revised | Check the Appendix 4R entry in force on the LEO date |
| Recovery notice | Export proceeds not realised in time | Get an extension through your AD bank before the deadline |

The claim is only as good as the shipping bill. Before filing, ask your customs broker to show you the drawback serial numbers and the RoDTEP declaration for every line.

## How SSL fits

SSL's fleet moves your cargo by road: factory to port, inland container depot or air cargo terminal for exports, and port to warehouse for imports, with the e-way bill and lorry receipt that leg needs. Across the land border, SSL runs full truckloads into Nepal and Bhutan. The sea or air leg, and customs clearance, are arranged by our desk. One desk plans the whole movement and stays accountable to you from pickup to delivery.

## Questions

**Can I claim both duty drawback and RoDTEP on the same export?**

Yes. They refund different things: drawback returns customs duty paid on imported inputs, and RoDTEP returns central, state and local taxes embedded in the product that are not refunded any other way. Both are declared on the same shipping bill. Source: DGFT / CBIC.

**How long is a RoDTEP scrip valid?**

A RoDTEP e-scrip is valid for one year from the date it is generated in the ICEGATE ledger. It can be used to pay basic customs duty on imports or transferred to another importer. Source: DGFT / ICEGATE.

**Do apparel exporters get RoDTEP?**

Apparel and made-ups (HS chapters 61, 62 and 63) are covered by RoSCTL, the Rebate of State and Central Taxes and Levies, rather than RoDTEP. Check the Ministry of Textiles notification for the scheme's current period. Source: Ministry of Textiles / DGFT.

## Sources

- [CBIC: Customs Act, 1962, sections 74 and 75](https://www.cbic.gov.in/entities/customs)
- [CBIC: Customs and Central Excise Duties Drawback Rules, 2017, and the Drawback Schedule](https://www.cbic.gov.in/entities/customs)
- [DGFT: RoDTEP scheme (FTP 2023, Appendix 4R rates)](https://www.dgft.gov.in/CP/?opt=RoDTEP)
- [ICEGATE: bank account registration, drawback status, RoDTEP e-scrip ledger](https://www.icegate.gov.in/)
- [Ministry of Textiles: RoSCTL for apparel and made-ups](https://texmin.nic.in/)

Moving an export or import? Our desk plans the whole route.

Tell us the cargo, the origin and the destination. Outside India, email corporatesales@sslpl.in.

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Source: https://safeandsecure.in/global/guides/duty-drawback-rodtep/ (the HTML page is the record; this markdown twin was generated from it on 2026-09-29). Publisher: Safe & Secure Logistics Private Limited, https://safeandsecure.in/. Figures and their periods: https://safeandsecure.in/facts/