Indirect Tax Laws · Foreign Trade Policy

Export Promotion Schemes: RoDTEP, RoSCTL and Advance Authorisation

Updated 5 October 2026

Export promotion schemes under FTP 2023 remove or refund taxes embedded in exports. Advance Authorisation gives duty-free import of inputs against an export obligation. RoDTEP and RoSCTL refund embedded taxes through scrips on a notified percentage of FOB value. To solve, identify the scheme, check eligibility, exclusions and obligation.

Understand Export Promotion Schemes: RoDTEP, RoSCTL and Advance Authorisation

Exports should leave the country without tax. GST is zero-rated, so IGST on exports is refunded or not charged. But exporters still bear other costs: customs duty on imported inputs, and taxes that are not refunded anywhere, such as state levies on fuel, electricity duty and mandi tax. The export promotion schemes in the Foreign Trade Policy 2023 deal with these two problems.

The first group works on inputs. Advance Authorisation (AA) lets you import inputs without paying customs duty, if the inputs are physically incorporated in the export product (allowing normal wastage). In return you accept an export obligation (EO): you must export the resultant product within the period fixed in the Handbook of Procedures, generally 18 months from the date of issue. Some categories have different periods, so the Handbook of Procedures governs. AA is issued before export and is non-transferable. AA has no fixed 20% value-addition condition in FTP 2023. Duty Free Import Authorisation (DFIA) is an older scheme that you may meet in earlier notes. Historically, it was issued after export (post-export, after realisation of exports), was transferable (unlike AA) and needed 20% value addition. Do not treat it as a current scheme without confirming its status against the FTP 2023 text. Use it only as a historical contrast with AA.

The second group works on embedded taxes. RoDTEP (Remission of Duties and Taxes on Exported Products) refunds central, state and local duties and taxes that are embedded in the export product and not refunded under any other mechanism. RoSCTL (Rebate of State and Central Taxes and Levies) does the same for exports of apparel, garments and made-ups. Both pay through an electronic scrip, as a notified percentage of the FOB value of the export.

The exclusions are not identical for the two schemes. RoDTEP is not available on exports under Advance Authorisation, by EOUs or by SEZ units. RoSCTL has its own notified exclusions, so do not assume the same bar applies. Check the notification of the scheme named in the question. An export cannot claim both RoDTEP and RoSCTL. Drawback of customs and central duties and RoDTEP are not both given for the same embedded taxes, because RoDTEP covers only taxes not otherwise refunded. Most exam questions test exactly this: which scheme fits, and which are excluded.

Compare with EPCG, which is different in purpose. EPCG allows import of capital goods at zero duty against an EO of six times the duty saved, to be fulfilled within six years from the date of issue of the authorisation. AA is for raw materials; EPCG is for machinery.

Key rules to remember

Advance Authorisation: what is allowed: Duty-free import of inputs physically incorporated in the export product (with normal wastage) + fuel, oil, catalyst consumed in obtaining the export product; Linked to input-output norms (SION or self-declared norms). AA and the inputs imported under it are not transferable, even after the EO is completed. Diversion of the inputs attracts duty, interest and possible penalty or confiscation under the Customs Act.
Advance Authorisation: export obligation: Export the resultant product within the EO period (generally 18 months from date of issue of the authorisation; the Handbook of Procedures governs); Check the Handbook of Procedures for the exact period, category-wise differences and extension rules. AA has no fixed 20% value-addition condition in FTP 2023.
RoDTEP / RoSCTL credit: Scrip amount = FOB value of export × notified rate (subject to any per-unit cap); Rates are notified product-wise. The scrip is electronic and transferable. RoSCTL applies to apparel, garments and made-ups only.
EPCG export obligation: EO = 6 × duty saved, within 6 years from date of issue of the authorisation; Use this to contrast with AA in a difference question.
Exclusion rule: RoDTEP: exports under AA, by EOUs and by SEZ units are excluded. RoSCTL: has its own notified exclusions. RoDTEP and RoSCTL cannot be claimed on the same export. Drawback and RoDTEP are not both given for the same embedded taxes; Do not assume the two schemes have an identical bar. Confirm the exclusions and other conditions against the notification of the scheme named in the question. RoDTEP covers only taxes not otherwise refunded.
DFIA features (historical contrast only): Issued after export (post-export); transferable; 20% value addition (historical features); Confirm DFIA's current status against the FTP 2023 text and do not present it as an available scheme. Learn it only as a contrast with AA, which is issued before export and is non-transferable.

How to solve Export Promotion Schemes: RoDTEP, RoSCTL and Advance Authorisation questions

Use this method for any question on duty remission and exemption schemes. It keeps the answer in provision-facts-conclusion form.

1Read the facts and find what the exporter wants to recover: duty on imported inputs, duty on capital goods, or embedded taxes on the export product.
2Match the need to the scheme: inputs for export - AA; capital goods - EPCG; embedded taxes - RoDTEP, or RoSCTL if the product is apparel, a garment or a made-up.
3State the rule in plain words: what is allowed, who is eligible, and the export obligation or the rate basis.
4Check the conditions in the facts: physical incorporation, EO period, wastage, transferability.
5Check exclusions: is the export under AA, EOU or SEZ? If so, RoDTEP is excluded; for RoSCTL, check its own notified exclusions. Is the exporter trying to claim two schemes on the same export, or drawback and RoDTEP for the same embedded taxes?
6Compute where numbers are given: scrip = FOB × rate; EPCG EO = 6 × duty saved; any cap.
7Write a clear conclusion that names the scheme, the benefit and the consequence of a default.

Quickest way: Three-question scheme filter

When to use it: Use it for case-scenario MCQs where you have about one minute per question.

Ask: what is being exempted or refunded? Inputs = AA. Machinery = EPCG. Embedded taxes = RoDTEP/RoSCTL.
Ask: is the product apparel, a garment or a made-up? If yes, RoSCTL; otherwise RoDTEP.
Ask: is the export under AA, EOU or SEZ? If yes, cross out RoDTEP. For RoSCTL, check the exclusions in its notification.
For calculations, multiply FOB by the rate, or multiply duty saved by 6, and stop.

Common mistakes in Export Promotion Schemes: RoDTEP, RoSCTL and Advance Authorisation

Claiming RoDTEP on an export made by an Advance Authorisation holder, an EOU or an SEZ unit, or assuming RoSCTL has the identical bar.
Students treat each scheme as an independent benefit and assume the two schemes have the same exclusions.
Fix: Remember that exports under AA, by EOUs and by SEZ units are excluded from RoDTEP. RoSCTL has its own notified exclusions, so check the notification named in the question.
Saying DFIA and AA are the same, or presenting DFIA as a current scheme without checking.
Both gave duty-free imports of inputs, and older notes still list DFIA.
Fix: AA is issued before export and is non-transferable. DFIA was issued after export (post-export), was transferable and, historically, needed 20% value addition. AA has no fixed 20% value-addition condition in FTP 2023. Confirm DFIA's status against the FTP 2023 text before treating it as available.
Confusing RoDTEP with duty drawback.
Both refund taxes on exported goods.
Fix: Drawback refunds customs and central duties on inputs used. RoDTEP refunds other embedded taxes (state and local levies, fuel, electricity duty) not refunded elsewhere. The two are not both given for the same embedded taxes. IGST on exports is dealt with separately under GST.
Applying the EPCG rule of six times duty saved to Advance Authorisation.
Both schemes have an export obligation.
Fix: AA's EO is to export the resultant product, generally in 18 months as per the Handbook of Procedures. The six-times rule belongs to EPCG, with a six-year period.
Using RoSCTL for any textile product.
The word 'textile' is read loosely.
Fix: RoSCTL is for apparel, garments and made-ups. Other products with embedded taxes go under RoDTEP.
Treating the RoDTEP rate as a percentage of the domestic price or of the import cost.
Students forget that rates are on FOB value.
Fix: Always apply the notified rate to the FOB value of the export, then check any cap.

Worked examples

Example 1

Shree Textiles, a garment manufacturer, imports fabric under an Advance Authorisation and exports shirts. It has some imported fabric left over and plans to sell it in the domestic market. Advise.

Show the solution

Scheme: AA allows duty-free import of inputs physically incorporated in the export product, against an export obligation.
Transferability: AA and the materials imported under it are not transferable, even after the EO is completed. Selling the surplus fabric domestically is not permitted under the authorisation.
Consequence: if the material is diverted, the exemption conditions are breached. Duty and interest become payable, and penalty or confiscation may follow under the Customs Act.

Answer: Shree Textiles cannot sell the imported fabric domestically, since the AA and the inputs are non-transferable. Diversion would make it liable to duty and interest, with possible penalty or confiscation under the Customs Act. It must use the fabric for the export product within the export obligation period.

Example 2

Meera Exports ships non-garment engineering goods with FOB value ₹40,00,000. Assume the notified RoDTEP rate is 1.5% with no cap, and the exports are not under AA, EOU or SEZ. Separately, an EPCG authorisation shows duty saved of ₹10,00,000 on machinery. Compute the RoDTEP benefit and the EPCG export obligation.

Show the solution

Eligibility: the exports are outside AA, EOU and SEZ, and the goods are not garments, so RoDTEP is the relevant scheme.
RoDTEP scrip = ₹40,00,000 × 1.5% = ₹60,000.
EPCG EO = 6 × ₹10,00,000 = ₹60,00,000.
Period: the EPCG EO must be met within six years from the date of issue of the authorisation.

Answer: The RoDTEP scrip is ₹60,000 (1.5% of FOB value). The EPCG export obligation is ₹60,00,000, to be fulfilled within six years from the date of issue of the authorisation.

Exam tips

Case MCQs often hide an exclusion: look for AA, EOU or SEZ in the facts before choosing RoDTEP, and check the notification for RoSCTL's own exclusions.
For 'distinguish between' questions, use a two-column layout with purpose, benefit, eligibility, EO and transferability.
Use the rate and the FOB value exactly as given. If the question gives a cap, apply it before concluding.
For periods (such as the EO period), say 'as per the Handbook of Procedures' if you are not sure, and state the figure you remember.

Practice questions from Foreign Trade Policy

Export Promotion Schemes: RoDTEP, RoSCTL and Advance Authorisation: frequently asked questions

What is the difference between Advance Authorisation and EPCG?

AA allows duty-free import of inputs used in the export product. EPCG allows import of capital goods at zero duty. EPCG has an EO of six times the duty saved, within six years of issue. AA's EO is to export the resultant product, generally within 18 months as per the Handbook of Procedures.

What is the difference between duty drawback and RoDTEP?

Drawback refunds customs and central duties suffered on inputs used in the export product. RoDTEP refunds other embedded duties and taxes not refunded under any other mechanism, such as state and local levies. The two are not both given for the same embedded taxes, so RoDTEP covers only what is not otherwise refunded.

Who can claim RoSCTL?

Exporters of apparel, garments and made-ups can claim RoSCTL. It has its own notified exclusions, so check the scheme notification rather than assuming the same bar as RoDTEP (which excludes exports under Advance Authorisation, by EOUs and by SEZ units). It also cannot be claimed together with RoDTEP on the same export.

Is Advance Authorisation transferable?

No. The authorisation and the materials imported under it are not transferable, even after the export obligation is completed. Diverting the inputs attracts duty, interest and possible penalty or confiscation. DFIA, an older scheme that was issued after export and was transferable, should be treated only as a contrast; confirm its status against the FTP 2023 text.