Duty drawback and RoDTEP
Duty drawback refunds customs duty paid on inputs that were used to make exported goods, and RoDTEP separately rebates embedded central, state and local levies that no other scheme refunds.
The principle behind both is that taxes should not be exported. If a duty or levy is embedded in the cost of something shipped abroad, the exporter is at a disadvantage against a competitor whose government does not do that.
Drawback is claimed at notified rates against the shipping bill and is credited to the exporter's bank account. RoDTEP is issued as transferable scrip credited in an electronic ledger, which can be used against basic customs duty or sold.
Both are claimed against realised exports, which is why they connect directly to BRC and EDPMS. An export that has not been realised is an incentive that has not been earned, and claims made on unrealised exports get clawed back.
Key facts
- Drawback rates are notified by tariff item and claimed against the shipping bill.
- RoDTEP is credited as transferable scrip in an electronic ledger.
- The declaration to claim must be made on the shipping bill at the time of export.
- Claims connect to realisation evidence via BRC.
- The two schemes cover different levies and an exporter may be eligible for both.
Who this affects
Exporters of goods, particularly manufacturers using imported inputs.
How YarnTally handles it
Drawback, RoDTEP and MEIS claims are tracked with a summary view, alongside DGFT licences such as EPCG and Advance Authorisation.
See what else it doesReviewed September 2026. This is general information about how these rules work, not tax or legal advice, and thresholds and due dates do change. Check your own position with your chartered accountant before acting on it.