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What's the difference between RoDTEP and duty drawback, and do I need to apply for both?

The short answer

They're complementary, not competing, Duty Drawback refunds the customs duty you paid on imported inputs, while RoDTEP refunds embedded state and local taxes (like VAT on the fuel used in transport) that never get credited anywhere else. Rates are modest, RoDTEP runs roughly 0.3-4.3% of FOB value depending on product, paid as transferable e-scrips, not cash to your bank account. Claim both if you're eligible; it's essentially free margin back on every compliant export shipment, but the numbers change, so verify current rates before building them into your pricing.

A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.

Here are the resources

Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.

3 resources 3 India-specific 2 link-checked

Read

📄 Article
✓ Link checked India Free Intermediate

Why we picked it A clear plain-language breakdown of what RoDTEP actually refunds and why it replaced MEIS, useful before you assume it works like a simple cashback scheme.

RoDTEP Scheme: Full Form, Rates, Guidelines, Eligibility, Features, Benefits

From cleartax.in by ClearTax

  • RoDTEP refunds embedded taxes/duties not covered by any other scheme
  • Replaced MEIS from January 2021 to keep India WTO-compliant
  • Benefit comes as transferable e-scrips, not direct cash to your account
Open cleartax.in
📄 Article
✓ Link checked India Free Beginner

Why we picked it The IEC is the one document you cannot export without, and this explains what it is, who needs it, and the DGFT application steps in plain language for first-time exporters.

Importer-Exporter Code (IEC): Meaning, Benefits, How to Apply

From sell.amazon.in by Amazon India

  • IEC is a 10-digit DGFT code, mandatory for exporting from India, with lifetime validity
  • Any firm type qualifies, proprietorship, partnership, LLP, company, with PAN and a bank account
  • Application is online via the DGFT portal and typically issued within a few days
Open sell.amazon.in
📄 Article
India Free Intermediate

Why we picked it A logistics company's read on RoDTEP is useful precisely because it connects the scheme to actual shipping and documentation workflow, not just the tax mechanics.

RoDTEP Scheme: A Complete Guide

From dhl.com by DHL

  • Explains RoDTEP rates as a percentage of FOB (Free On Board) value
  • Connects the scheme to the shipping-bill documentation you already file
  • Rates vary widely by product category, verify current rates before pricing
Open dhl.com

People also ask

What's the very first paperwork I need before I ship one export order out of India? Three things, non-negotiable: an IEC (Importer-Exporter Code) from DGFT, around Rs 500, usually issued within a few working days, active GST regist... Beginner 4 resources → What is an HS code and how do I find the right one for my product? An HS (Harmonized System) code is the universal 6-digit product classification customs authorities use worldwide; India's ITC-HS adds two more digi... Beginner 4 resources → What do DDP and DDU/DAP mean, and which should I choose at checkout? DDP (Delivered Duty Paid) means you collect and pay the destination duty upfront so the customer's price is all-in with zero surprises at the door;... Intermediate 3 resources → Do I need an LUT to avoid paying IGST upfront on export orders? Yes, file a Letter of Undertaking (LUT) on the GST portal, it's free, valid for a financial year, and lets you export goods and services without pa... Intermediate 3 resources → What compliance mistakes get first-time exporters' shipments stuck at customs? Wrong or vague HS codes are the number-one cause, customs holds the parcel to reclassify it, which can take weeks. Close behind: mismatched invoice... Advanced 4 resources → What is RoDTEP and how does it help if I export through Amazon Global or Shopify? RoDTEP refunds embedded central, state and local duties that never get credited anywhere else in your export chain - worth roughly 0.3% to 4.3% of ... Intermediate 4 resources →
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