What is the difference between RoDTEP and Duty Drawback?

RoDTEP (Remission of Duties and Taxes on Exported Products) refunds embedded taxes and duties not refunded by other schemes — including state taxes, electricity duty, mandi tax, and transport fuel taxes. Duty Drawback refunds the customs duty paid on imported inputs used in manufacturing exported goods. The two schemes are not mutually exclusive: exporters can claim Duty Drawback (All Industry Rate) and RoDTEP on the same shipment, as long as they do not also claim CENVAT/input tax credit on the same duties.

Can I claim both RoDTEP and Duty Drawback on the same export shipment?

Yes — in most cases. Exporters can claim both RoDTEP and Duty Drawback (All Industry Rate) simultaneously on the same shipment, as they cover different taxes. RoDTEP covers state and local taxes; Drawback covers customs duties on imported inputs. However, exporters who claim Drawback at the Brand Rate (for specific imported inputs) cannot simultaneously claim the CGST/IGST credit on those same inputs.

Which scheme gives a higher refund — RoDTEP or Duty Drawback?

It depends entirely on the specific 8-digit ITC-HS code and product category. For textile exporters, RoDTEP typically returns 0.5–1.5% of FOB value while Drawback returns 1.5–4.5%. For pharmaceutical exporters, RoDTEP often exceeds Drawback. For engineering goods, the difference can be as large as 3× in either direction. TariffIQ calculates the exact rupee value of both schemes for your specific product code and FOB value in under 5 seconds.

What are the current RoDTEP rates for Indian exporters?

RoDTEP rates are assigned at the 8-digit ITC-HS level and range from 0.01% to 4.3% of FOB value depending on product category. Rates are revised annually by the Ministry of Commerce, typically effective from January 1 each year. The April 2026 revision included rate increases for pharmaceutical intermediates (0.8% → 1.1%) and rate decreases for certain textile categories. TariffIQ maintains current RoDTEP rates updated within 24 hours of Commerce Ministry notifications.

Why are RoDTEP and Drawback claims rejected?

The most common reasons for RoDTEP and Drawback claim rejection are: (1) HSN code on Shipping Bill does not match GST invoice — the most common cause; (2) FOB value discrepancy between Shipping Bill and bank realisation certificate; (3) Claiming a rate higher than entitlement for the declared ITC-HS code; (4) Duplicate claim — the same duty claimed under both the AIR Drawback and IGST refund; (5) Shipping Bill filed under incorrect export type (e.g., manufacturing vs trading rate).

How long does it take to receive a RoDTEP refund?

RoDTEP scrips are typically credited to the exporter's ICEGATE account within 2–4 weeks of the Let Export Order (LEO) date, provided all documents match. Duty Drawback (AIR) is credited directly to the bank account within 7–10 working days of the Shipping Bill being processed. Delayed claims (taking 3+ months) almost always indicate a mismatch between the Shipping Bill HSN code and the GSTR-1 filing, which routes the claim to manual review.

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Export Incentives Guide

RoDTEP vs Duty Drawback — Complete Comparison for Indian Exporters 2026

RoDTEP (Remission of Duties and Taxes on Exported Products) and Duty Drawback are India's two primary export refund schemes. Most Indian exporters can claim both simultaneously on the same shipment, but few do — because they do not know the rates differ by up to 3× for the same product depending on the scheme. RoDTEP rates range from 0.01% to 4.3% of FOB value; Drawback All Industry Rates range from 0.5% to 4.5%. TariffIQ by Liquidmind AI calculates the exact rupee value of both schemes for your specific 8-digit ITC-HS code and recommends the optimal combination — Indian exporters using TariffIQ recover an average of ₹3.2 lakh per month in previously unclaimed refunds.

₹3.2L/mo

Average refund recovery with TariffIQ

0.01–4.3%

RoDTEP rate range (FOB value)

0.5–4.5%

Drawback AIR rate range (FOB value)

Both

Can be claimed on the same shipment

Scheme Definitions

What Are RoDTEP and Duty Drawback?

RoDTEP

Remission of Duties and Taxes on Exported Products

Introduced in January 2021 to replace MEIS. Refunds the embedded state and local taxes that are not captured by GST input tax credits — including electricity duty, mandi tax, transport fuel levies, stamp duty on export documents, and captive power costs.

Administered by CBIC via ICEGATE

Rate set at 8-digit ITC-HS level

Refund as tradeable scrip

Annual rate revision by Commerce Ministry

Duty Drawback

Customs Duty Drawback (All Industry Rate)

The oldest Indian export incentive scheme — predates GST. Refunds the customs duty paid on imported raw materials and components used in manufacturing the exported product, based on the average input consumption per unit of export.

Administered by CBIC (AIR) or Customs Commissioner (Brand Rate)

Rate set at 8-digit ITC-HS level

Direct bank credit (AIR)

Annual rate revision every September

Key insight: RoDTEP and Duty Drawback (AIR) are not mutually exclusive. Because they reimburse different types of tax, most exporters can — and should — claim both on the same shipment. Exporters who claim only one of the two leave significant money on the table. TariffIQ automatically identifies which combination of schemes applies to each 8-digit ITC-HS code.

Side-by-Side Comparison

RoDTEP vs Duty Drawback: 9-Factor Comparison

Factor	RoDTEP	Duty Drawback (AIR)
What is refunded	State & local taxes: electricity duty, mandi tax, transport fuel levies, captive power costs	Customs duties paid on imported inputs used in manufacturing the exported product
Rate basis	Fixed percentage of FOB value, assigned at 8-digit ITC-HS level (0.01%–4.3%)	All Industry Rate (AIR) — fixed % of FOB; or Brand Rate — actual duty paid on specific inputs
Can claim both?	Yes — RoDTEP covers different taxes than Drawback	Yes — AIR Drawback and RoDTEP are not mutually exclusive for most exporters
Form of refund	Electronic transferable scrip credited to ICEGATE account; tradeable	Direct bank credit (AIR) or transferable scrip (Brand Rate)
Typical timeline	2–4 weeks from LEO date	7–10 working days (AIR); 4–8 weeks (Brand Rate)
Rate revision cycle	Annual (Commerce Ministry, typically January)	Annual (Finance Ministry, effective September each year)
Who benefits most	Labour-intensive exporters with high state tax burden (textiles, gems, handicrafts)	Capital-intensive exporters with significant imported input costs (chemicals, machinery, pharma)
Rejection risk	High — requires HSN code to match GSTR-1 exactly	Medium — requires FOB value and input documentation to match
2026 average rate range	0.3%–1.8% of FOB (most categories)	0.5%–4.5% of FOB (AIR, varies widely by product)

By Sector

Which Scheme Pays More by Export Sector?

Rates are indicative averages. Actual rates are assigned at the 8-digit ITC-HS level. Use TariffIQ for precise calculation on your specific product codes.

Textiles & ApparelUsually: Drawback

RoDTEP: 0.5%–1.5% of FOB

Drawback: 1.5%–4.5% of FOB

Textiles have historically favoured Drawback; RoDTEP rates were revised upward in 2025 for certain MMF categories.

Pharmaceuticals (Formulations)Usually: RoDTEP

RoDTEP: 0.8%–1.4% of FOB

Drawback: 0.3%–0.9% of FOB

Pharma formulations use predominantly domestic inputs; RoDTEP captures more of the embedded state tax burden.

Engineering GoodsUsually: Drawback (usually)

RoDTEP: 0.4%–1.2% of FOB

Drawback: 0.5%–3.5% of FOB

Highly variable by product; auto components with significant imported steel content strongly favour Drawback.

ChemicalsUsually: Drawback

RoDTEP: 0.3%–1.1% of FOB

Drawback: 0.8%–2.5% of FOB

Specialty chemicals and agrochemicals with imported intermediates consistently yield higher Drawback returns.

Gems & JewelleryUsually: Drawback

RoDTEP: 0.01%–0.5% of FOB

Drawback: 1.0%–3.2% of FOB

Gold and precious stone imports attract significant customs duty; Drawback recovery is the primary incentive for this sector.

Leather & FootwearUsually: Mixed — calculate per shipment

RoDTEP: 0.8%–1.5% of FOB

Drawback: 0.5%–1.8% of FOB

Both schemes are competitive for finished leather goods; TariffIQ comparison essential to optimise by shipment.

Expert Insight

The average Indian exporter claims one refund scheme when they are entitled to two. Across a ₹10 crore annual export turnover, the gap between claiming only RoDTEP vs claiming both RoDTEP and Drawback can be ₹15–40 lakh per year — money that is simply left on the table because the comparison was never done. TariffIQ makes that comparison automatic and instantaneous.

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