Full RoDTEP Benefits Restored: What MSME Exporters Must Do Now

In a major relief for India’s export community, the government has restored full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, reversing last month’s decision to halve rates for most products. The move comes at a critical time, as MSME exporters are grappling with elevated freight charges, war-related disruptions in the West Asian maritime corridor and rising insurance premiums following recent geopolitical tensions.

RoDTEP, introduced in 2021, refunds unremitted central, state and local taxes embedded in the manufacturing and distribution of export goods. These include electricity duties, fuel taxes, mandi fees and other levies that were previously unrecoverable. Refund rates under the scheme broadly range from 0.3% to 3.9%, depending on the product category.

The Directorate General of Foreign Trade has now reinstated the earlier rates and value caps applicable as on February 22, 2026. These restored benefits will apply from February 23, 2026 to March 31, 2026 for all eligible products. The step is aimed at supporting cost-pressed exporters and ensuring competitiveness amid unstable global markets.

For MSMEs, this reinstatement offers timely cash-flow support. Exporters across sectors like textiles, engineering goods, handicrafts, leather, and processed foods can now factor in the full refund while costing orders, especially important at a time when freight rates and transit risks are rising.

How MSMEs Can Actually Claim RoDTEP Benefits

RoDTEP is not applied for manually; it flows automatically through the customs system if exporters follow a set of essential steps:

1. Correctly declare RoDTEP in the shipping bill.
At the time of export, MSMEs must ensure that the RoDTEP field is marked as “Yes” and all mandatory declarations are provided. Missing this step makes the shipment permanently ineligible.

2. Track scroll generation on ICEGATE.
Once the Export General Manifest (EGM) is filed, Customs generates a refund scroll for eligible items. Exporters can view this on the ICEGATE portal: https://www.icegate.gov.in/

3. Generate the e-Scrip using ICEGATE login.
Using a DSC, exporters can convert the scroll credits into a tradable e-Scrip under
Services → Incentives → RoDTEP → Generate e-Scrip.

4. Use or transfer the e-Scrip.
The e-Scrip can be used to pay Basic Customs Duty or electronically transferred to another importer.

With freight costs rising and global markets unstable, the restoration of full RoDTEP benefits provides MSMEs with critical cushioning. Exporters who ensure correct declarations, timely tracking on ICEGATE and proper documentation will be best positioned to maximise the support available under the reinstated scheme.