Indirect Tax Laws and Practice · Export Promotion Schemes under Foreign Trade Policy

RoDTEP and RoSCTL: Duty Remission Schemes Explained

Updated 11 October 2026 · Fact-checked

RoDTEP and RoSCTL are export schemes under the Foreign Trade Policy that refund taxes and duties embedded in exported goods and not refunded elsewhere. RoDTEP covers most embedded central, state and local levies; RoSCTL covers such levies on apparel, made-ups and garments. To solve questions, identify the product, check eligibility, apply the notified rate to FOB value, and avoid double benefit with drawback.

Understand Duty Remission Schemes: RoDTEP and RoSCTL

Exporters should not export taxes. GST on exports is zero-rated, so IGST paid or input tax credit is refunded. But some costs stay embedded in the product and are not refunded by GST. Examples are duty on fuel used in transport and manufacture, electricity duty, and mandi tax. If these stay in the price, the Indian exporter becomes less competitive.

RoDTEP (Remission of Duties and Taxes on Exported Products) remits these embedded central, state and local duties and taxes. RoSCTL (Rebate of State and Central Taxes and Levies) does the same for apparel/garments and made-ups. The two cannot be claimed together on the same item.

Duty drawback is the older scheme. It refunds customs duty paid on imported inputs and central excise or service tax embedded in inputs, using All Industry Rates or Brand Rates. The drawback rates are built to exclude the components covered by RoDTEP or RoSCTL. So the three schemes sit side by side and are designed not to overlap.

The benefit is a percentage of the FOB value of the exported product, at rates notified by the government for each tariff line, usually with value caps for some items. The benefit is given as a transferable electronic scrip or credit in the exporter's ledger, which can be used to pay basic customs duty. The exact rates, caps and conditions come from notifications and the Foreign Trade Policy, so check the current notification in the exam.

The legal base is the Foreign Trade (Development and Regulation) Act, 1992. Rules under section 19 may specify the form and conditions for a licence, certificate, scrip or any instrument bestowing financial or fiscal benefits. Under section 14, no penalty or confiscation order can be made without a written notice stating the grounds and allowing a written representation and a hearing if desired.

Key rules to remember

Benefit under RoDTEP or RoSCTL: Benefit = FOB value of eligible exported goods × notified rate %; Apply any value cap per unit if the notification gives one. Rates are per tariff line.
No double benefit: RoDTEP and RoSCTL cannot both be claimed on the same product; drawback rates exclude components covered by them; Choose the scheme that applies to the product (garments and made-ups under RoSCTL, otherwise RoDTEP). Confirm in the current notification.
Appeal period under Section 15 FT(D&R) Act: 45 days from service of the order, plus up to 30 days more for sufficient cause; For a penalty or redemption charges, the amount must be deposited first, unless the Appellate Authority dispenses with it for undue hardship.
Show-cause rule under Section 14: Notice in writing with grounds, reasonable time for written representation, and hearing if desired; Required before any penalty or confiscation order.

How to solve Duty Remission Schemes: RoDTEP and RoSCTL questions

Use this order for any question on RoDTEP, RoSCTL or drawback.

1Identify the exported product and its tariff line. Garments and made-ups point to RoSCTL; most other goods point to RoDTEP.
2Check eligibility: the goods must be exported and the scheme must cover the tariff line. Note any excluded category given in the question.
3Find the value base. Use the FOB value stated in the shipping bill unless the question gives another base.
4Apply the notified rate to the base. Apply any per-unit cap if one is stated.
5Check for overlap. Ensure the same item is not claimed under both RoDTEP and RoSCTL, and that drawback is claimed only on its own component.
6State the form of benefit: a transferable electronic scrip or credit in the exporter's ledger that can pay basic customs duty.
7If the question is about a dispute, apply Section 14 (notice and hearing) and Section 15 (appeal timelines and deposit).
8Close with a clear recommendation or conclusion.

Quickest way: Product-first scheme choice

When to use it: Use this for MCQs and short numerical questions where time is tight.

Garments or made-ups? Take RoSCTL. Otherwise take RoDTEP.
Multiply FOB value by the rate given. Check for a cap.
If drawback is also mentioned, treat it as a separate refund of input duty, not part of RoDTEP.
If the question asks about appeal, recall 45 days plus 30 days and the penalty deposit rule.

Common mistakes in Duty Remission Schemes: RoDTEP and RoSCTL

Treating RoDTEP as a refund of GST.
Both are export incentives and both mention taxes.
Fix: GST on exports is handled by zero rating and refund. RoDTEP covers embedded taxes that GST does not refund.
Claiming RoDTEP and RoSCTL on the same product.
Students see both as general export benefits.
Fix: Treat them as alternatives by product. Garments and made-ups go under RoSCTL; do not stack the two.
Applying the rate to the invoice value including freight and insurance.
The words export value are used loosely.
Fix: Use FOB value as the base unless the question says otherwise.
Saying drawback and RoDTEP refund the same duties.
Both are called duty refunds.
Fix: Drawback relates to duties on inputs. RoDTEP covers other embedded levies. Drawback rates exclude RoDTEP/RoSCTL components.
Quoting appeal time as 30 days.
Mixing up with other statutes.
Fix: Under Section 15 of the FT(D&R) Act, it is 45 days, extendable by up to 30 more days for sufficient cause.
Treating MEIS or SEIS as live schemes.
Older material still lists them.
Fix: Both are discontinued; RoDTEP and RoSCTL replaced them for embedded-tax relief. Treat MEIS and SEIS as historical.

Worked examples

Example 1

Surya Exports Ltd, Tiruppur, exports cotton shirts with FOB value ₹80,00,000. The notified RoSCTL rate for the item is 6%. No cap applies. Compute the RoSCTL benefit and state whether RoDTEP can also be claimed on the same shirts.

Show the solution

Cotton shirts are apparel, so RoSCTL is the applicable scheme.
Benefit = FOB value × rate = ₹80,00,000 × 6% = ₹4,80,000.
RoDTEP cannot be claimed together with RoSCTL on the same product, so no additional claim is allowed.

Answer: RoSCTL benefit is ₹4,80,000. RoDTEP cannot also be claimed on the same shirts.

Example 2

Bharat Auto Components Pvt Ltd exports parts with FOB value ₹50,00,000. The notified RoDTEP rate is 1.5%, with a cap of ₹40,000 per consignment for this item. Compute the benefit. Separately, the Director General imposed a penalty on the firm by an order served on 1 March; the firm wants to appeal. State the appeal period and the deposit position.

Show the solution

Uncapped benefit = ₹50,00,000 × 1.5% = ₹75,000.
The cap is ₹40,000, which is lower than ₹75,000, so the benefit is ₹40,000.
The order is by the Director General, so the appeal lies to the Central Government under Section 15.
The appeal must be filed within 45 days of service of the order, extendable by up to 30 more days if sufficient cause is shown.
Because the order imposes a penalty, the penalty amount must be deposited before the appeal is entertained, unless the Appellate Authority dispenses with it for undue hardship.

Answer: RoDTEP benefit is ₹40,000 after the cap. Appeal to the Central Government within 45 days (plus up to 30 days for sufficient cause), with the penalty deposited unless dispensed with for undue hardship.

Exam tips

In MCQs, the usual traps are product-to-scheme matching and the no-overlap rule. Read the product name first.
For numericals, always check for a cap before giving the final benefit.
In case-based answers, give a clear recommendation: which scheme applies, the amount, and the form of benefit.
Learn the Section 14 and Section 15 timelines and conditions exactly; they are easy marks.
Rates and conditions are notified and change. Use the figures given in the question, not memory.

Practice questions from Export Promotion Schemes under Foreign Trade Policy

Duty Remission Schemes: RoDTEP and RoSCTL: frequently asked questions

What is the difference between duty drawback and RoDTEP?

Drawback refunds duties on inputs, such as customs duty on imported materials. RoDTEP remits other embedded central, state and local taxes that are not refunded elsewhere. Drawback rates exclude the components covered by RoDTEP.

Who can claim RoSCTL?

RoSCTL is for exporters of apparel/garments and made-ups. Eligibility depends on the product tariff line in the notification and on the goods actually being exported. It cannot be claimed together with RoDTEP on the same item.

How is the RoDTEP benefit claimed on a shipping bill?

The exporter declares the scheme on the shipping bill for the eligible tariff line. The benefit is calculated on FOB value at the notified rate and credited as an electronic scrip or ledger credit after export. Check the current customs procedure for exact declarations.

Can the RoDTEP credit be used to pay GST?

The scrip is generally used to pay basic customs duty and is transferable. Do not assume it can pay IGST or other taxes unless the question or notification says so.