What Is Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme is a Government of India initiative introduced in 2021 to help exporters recover eligible taxes, duties and levies that remain embedded in the cost of exported goods but cannot be reclaimed through existing tax refund mechanisms.

Under RoDTEP, eligible exporters receive a digital duty credit called an e-scrip. The benefit is generally calculated as a percentage of the shipment's Free on Board (FOB) value, although certain products may qualify for a fixed amount per unit.

Eligible costs can include fuel-related taxes, electricity duties, mandi fees, market cess and certain non-creditable taxes on inputs and services, subject to the applicable product conditions.

RoDTEP replaced the Merchandise Exports from India Scheme (MEIS) and was introduced to address unrefunded taxes and duties embedded in exported goods rather than provide a general export incentive. For the latest applicable rates and updates, always check the <a href="https://www.skydo.com/blog/rodtep-scheme-guide">RoDTEP scheme rates, notifications and benefits</a>.

Manufacturer exporters and merchant exporters of Indian-origin goods are eligible for RoDTEP, with no minimum turnover requirement, provided several specific conditions are also met.

No turnover threshold applies to either manufacturer or merchant exporters, which keeps the scheme open to small and large exporters alike. Additionally,

Products under export restrictions or prohibitions, deemed exports, and goods manufactured in bonded warehouses all fall outside the scheme. Apart from this,

Beyond RoDTEP, several other export incentive schemes exist for Indian exporters, covered in<a href="https://www.skydo.com/blog/export-promotion-schemes"> export promotion schemes</a>.

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme provides a rebate on eligible central, state and local duties, taxes and levies that remain embedded in exported goods and are not refunded through another mechanism. The benefit is generally calculated against the Free on Board (FOB) value of the export at the rate notified for the relevant tariff line, subject to any applicable per-unit cap.

The benefit is issued electronically as a transferable RoDTEP e-scrip through the Indian Customs Electronic Gateway (ICEGATE). The e-scrip can be used to pay Basic Customs Duty (BCD) on eligible imports or transferred to another eligible ICEGATE user.

<a></a>Covered vs Uncovered Expenses Under RoDTEP

The RoDTEP claim generally moves through four stages:

Note: The exact RoDTEP rate depends on the product's tariff line and the notification applicable to the export. Rates and value caps can change, so exporters should check the current notified rate for their specific product rather than rely on a single scheme-wide percentage.

RoDTEP's core benefits are the rebate of previously unrecoverable taxes, transferable e-scrips that can be monetised, a WTO-compliant structure, improved cash flow, and fully digital processing.

E-scrip validity is worth a direct note here, since published guides genuinely disagree on this point, quoting one year, eighteen months, or two years. The usable life is tied to each e-scrip's own creation date, shown in the exporter's ICEGATE ledger. Checking the validity printed on the actual scrip beats trusting any generic figure quoted elsewhere.

What Are the Current RoDTEP Scheme Rates?

RoDTEP rates are notified as a percentage of the Free on Board (FOB) value of exported goods, with a per-unit value cap applying to some products. The applicable rate is linked to the product's 8-digit Harmonized System (HS) code, so exporters need to check the rate for their exact tariff line rather than rely on a general sector-wide figure.

As per Directorate General of Foreign Trade (DGFT) Notification No. 74/2025-26 dated 31 March 2026, the RoDTEP Scheme was extended from 1 April 2026 to 30 September 2026 at the rates and value caps applicable on 31 March 2026. Exporters should therefore treat 30 September 2026 as the current end date unless the scheme is extended further.

A temporary 50% reduction in RoDTEP rates and value caps, introduced through DGFT Notification No. 60/2025-26 dated 23 February 2026, was withdrawn with effect from 23 March 2026. The earlier notified rates and caps were consequently restored.

<a></a>Illustrative RoDTEP Rate Bands for 2026

The following bands are illustrative rather than fixed rates for every product within a sector. The actual benefit depends on the exact 8-digit HS code and the applicable notified rate and value cap.

Rates can be higher for certain textile, apparel and other labour-intensive product lines. To identify the rate applicable to an export, check the exact 8-digit HS code in the current DGFT RoDTEP schedule (Appendix 4R). A mismatch in the HS code declared on the shipping bill can result in the wrong rate being applied or affect the claim.

The percentage rate and any applicable per-unit value cap must be checked together, since both can determine the final RoDTEP credit.

RoDTEP and Duty Drawback can both be claimed on the same shipping bill, because the two schemes rebate different things rather than competing for the same benefit.

Where most of an exporter's cost recovery would come from customs duty paid on imported inputs, Duty Drawback becomes the more relevant scheme of the two. Exporters relying heavily on imported inputs should weigh both schemes rather than optimising for just one.

How To Claim RoDTEP Scheme: A Step-by-Step Guide

Claiming RoDTEP benefits involves a series of steps, starting with declaring the scheme in the shipping bill and ending with generating the e-scrip. Here is how the RoDTEP claim process works:

Step 1: Declare RoDTEP in the shipping bill

When filing the electronic shipping bill, explicitly select the RoDTEP scheme code for each eligible item. This declaration activates the benefit and cannot be added once the Export General Manifest is filed.

Step 2: Customs processes the claim after EGM

Once the carrier files the Export General Manifest, the customs system checks the shipping bill for RoDTEP eligibility and computes the rebate against the notified rate and per-unit cap.

Step 3: Scroll generation on ICEGATE

After verification, customs generates a scroll listing all eligible shipping bills and the admissible RoDTEP amount for each. This scroll uploads to the exporter's ICEGATE account, tagged to their IEC, confirming the benefit has been approved.

Step 4: Create the RoDTEP credit ledger account

Logging into ICEGATE with a valid IEC, the exporter creates a RoDTEP credit ledger account under the e-scrip section. This is a one-time setup, a precondition for receiving any credits, and it requires a valid Class 3 Digital Signature Certificate.

Selecting the relevant scroll and shipping bills in ICEGATE moves the credit from scroll status to usable scrip status. The e-scrip then appears in the ledger, ready for use or transfer.

Step 6: Use or transfer the e-scrip

The e-scrip can offset Basic Customs Duty on the exporter's own imports at Bill of Entry filing, or it can be sold to another domestic importer with BCD liability. E-scrips can only offset BCD, not IGST, anti-dumping duty, or other import levies.

Note: The HSN code determines the rate that applies. The refund percentage follows the notified HSN code of the exported item, typically between 0.3% and 4.3% of FOB value.

Which Documents Are Needed to Claim Benefits under RoDTEP Scheme?

Claiming RoDTEP benefits requires a valid IEC, the shipping bill, an eBRC, and a DSC. ICEGATE registration, export invoice and packing list, bill of lading, EDI registration, and GST returns where applicable complete the list.

The RoDTEP Annual Return, officially Appendix 4RR, is a mandatory yearly compliance filing submitted on the DGFT portal. It reconciles the e-scrips an exporter earned during the year against their actual factory expenses.

What the ARR covers, the ₹50 lakh rule

The return covers production and export values; meaning total units manufactured, quantities exported, and FOB value realised. It also needs an input tax breakdown, line-by-line consumption data for raw materials, electricity, and fuels, including the specific un-refunded tax paid on each. A final comparison then demonstrates to DGFT that the cumulative embedded tax value matches or justifies the e-scrips collected.

Missing the deadline causes ICEGATE to automatically suspend scroll generation, freezing all pending and future RoDTEP claims at the port until compliance is restored. A composition fee also applies for late filing. DGFT has set this fee at different amounts across recent extension notices, so confirming the current figure directly with DGFT is worth doing before assuming a specific number. Raw material bills, fuel logs, and utility records also need preserving for 5 years from the filing date, in case of risk-based scrutiny.

Consider an Indian garment exporter shipping USD 15,000 worth of readymade garments to a buyer in the US. If the applicable exchange rate is approximately ₹83 per USD, the shipment has an illustrative FOB value of ₹12,45,000.

Assume the product's applicable RoDTEP rate is 0.5%. The actual rate must be checked against the product's exact HS code and the prevailing RoDTEP schedule.

RoDTEP credit = 0.5% × ₹12,45,000 = ₹6,225.

Once the eligible RoDTEP amount is available in the exporter's ICEGATE ledger, the exporter can generate the e-scrip. If the exporter later imports a textile machinery part carrying ₹6,225 in Basic Customs Duty (BCD), the e-scrip can be used to pay that BCD, thereby reducing the cash duty outflow by ₹6,225. ICEGATE confirms that RoDTEP e-scrips can be used for BCD on imports.

For a larger example, suppose a mid-sized textile exporter records ₹10 crore in annual FOB exports and the applicable average RoDTEP rate across its products is 1.2%. The resulting credit would be approximately ₹12 lakh. If the exporter later has a ₹12 lakh BCD liability on an eligible machinery import and has sufficient valid e-scrip credit available, that credit could cover the BCD liability.

The basic RoDTEP cycle is therefore:

Export goods &gt; declare RoDTEP in the shipping bill &gt; eligible credit becomes available on ICEGATE &gt; generate the e-scrip &gt; use or transfer the e-scrip.

Note: The 0.5% and 1.2% rates above are illustrative. RoDTEP rates are product- and HS-code-specific. The applicable rate and any per-unit cap should always be checked before calculating the expected credit.

What Are The Common Mistakes While Claiming RoDTEP Scheme and How to Fix Them?

The most common RoDTEP mistakes revolve around skipping the declaration step, mapping the wrong HS code, letting data mismatch across documents and assuming e-scrips cover more than they actually do.

How Does Skydo Help Receive International Payments?

RoDTEP benefits depend on proper export documentation and realisation of export proceeds. Receiving international payments through a compliant channel and maintaining the required FIRA and eBRC records can help exporters keep their export documentation in order and support their incentive claims.

<a href="https://www.skydo.com/">Skydo</a> is a cross-border payment aggregator that helps Indian goods exporters, freelancers and Amazon sellers receive international payments. It is designed for receiving money from abroad rather than sending international payments.

Skydo provides virtual receiving accounts in USD, EUR, GBP, SGD, AUD and CAD, with account setup taking about 5 minutes and no monthly fees. Its pricing is transaction-based:

Skydo also uses live FX rates with zero FX margin. Every transaction includes an automatically generated FIRA (Foreign Inward Remittance Advice), giving exporters a digital record of the foreign payment received.

For eligible exporters, Skydo also supports eBRC generation by linking the Directorate General of Foreign Trade (DGFT) account, bulk-uploading shipping bills and matching IRMs with the relevant export records. This reduces the manual work involved in reconciling export payments with shipping bills.

Skydo also provides EDPMS closure assistance, helping exporters manage the documentation associated with export proceeds without relying entirely on manual bank follow-ups.

Payments are settled within 24 hours, with real-time payment tracking so exporters can monitor the status of their transactions. Skydo also offers India-based customer support through multiple channels, thereby giving exporters a local support option when they need help with payment or compliance-related issues.

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IEC renewal is the annual update DGFT requires from every IEC holder. Between April 1 and June 30 each year, you log in to the DGFT portal, check your business details, and resubmit them.

The name is where the confusion comes from. An IEC has lifelong validity, so nothing lapses and you never have to reapply. The annual update exists only to keep the existing code active.

You still have to file it when your address, contact details, and bank information match last year's. Confirming unchanged details counts as the update.

Miss the June 30 deadline, and DGFT deactivates the IEC on July 1, with no warning and no suspension stage in between. Imports and exports stop clearing, and banks can hold inward foreign payments linked to that code until it's active again.

The requirement comes from <a href="https://content.dgft.gov.in/Website/DGFT%20Notification%20No.%2058%20(English).pdf">DGFT Notification No. 58/2015-20</a>, dated February 12, 2021, which amended the <a href="https://www.skydo.com/blog/iec-code">IEC</a> provisions of the Foreign Trade Policy. Until then, an IEC was issued once and asked nothing of you afterward.

Since that amendment, every IEC holder has to confirm details electronically each year during the April to June window. IECs that aren't updated get deactivated and become active again only after the pending update goes through.

IEC Renewal (Updation) vs Modification vs Reactivation: What Is the Difference?

The DGFT portal handles three separate actions on your IEC, and they differ by when you do them, what changes, and what they cost.

Annual updation is the yearly confirmation. You log in between April 1 and June 30, review your existing profile, and submit it without making any changes. No fee applies, per DGFT Public Notice No. 49/2015-20. [Source: <a href="https://content.dgft.gov.in/Website/dgftprod/88df17ca-462a-4d66-9a54-afcaf57aa347/PN.19E.pdf">DGFT Public Notice No. 49/2015-20, March 31, 2021</a>]

Modification is for when something about your business actually changes. A shifted registered office, a new branch, a change in directors or partners, a different bank account. You edit the relevant field, upload proof, and pay the ₹200 application fee. This one has no window attached to it, so you do it whenever the change happens, not in April.

Say you move your registered office in November. Waiting until the next April window would leave a wrong address on file for five months, and DGFT notices would keep going to the old one. You file a modification in November instead, then still complete the annual update in April.

Reactivation applies after the fact. If June 30 passed without an update and your IEC went inactive, the portal still accepts the pending update. Submitting it restores the code without a separate application and without a DGFT penalty fee.

How To Renew Your IEC Online on the DGFT Portal?

The whole process runs online and takes under an hour when nothing has changed.

Go to <a href="http://dgft.gov.in">dgft.gov.in</a> and click Login at the top right. Sign in with your registered email ID and password. If you've never registered on the current portal, create an account first using your PAN.

Step 2: Open IEC profile management

From the top navigation, open the Services menu. Select IEC Profile Management, then click Update IEC.

Step 3: Confirm or change your details

The portal displays your current details in the following sections: firm details, proprietor, partner or director details, and bank account details.

If nothing has changed, read through each section, confirm the entries are accurate, and move ahead. If something has changed, edit the field and upload supporting proof, such as a new lease agreement for an address change or a recent bank statement for updated account details.

Step 4: Authenticate with DSC or Aadhaar eSign

Once you reach the declaration section, sign the submission using either a valid Class 3 Digital Signature Certificate or Aadhaar eSign with an OTP on your linked mobile number. Proprietors usually find the Aadhaar route quicker since it needs no hardware token.

Review the application summary and submit. With authentication completed correctly, the system processes the update immediately.

Step 6: Download the updated certificate

Your updated e-IEC certificate becomes available for download immediately. To confirm it went through, go back to Services, then IEC Profile Management, then View IEC or Print IEC. The IEC status field should read Active.

One timing detail matters here. After the update reflects on DGFT, ICEGATE can take 24 to 48 hours to sync the active status. Customs clearances run off ICEGATE, so leave that buffer before scheduling a shipment against a freshly updated IEC.

What Documents Are Required for IEC Renewal?

For a straight annual update, the portal asks for no document uploads. As long as you're only confirming details that haven't changed, digital authentication via DSC or Aadhaar eSign completes the process. That's per DGFT Notification No. 58/2015-20, which requires electronic confirmation, not physical.

You will need a few things on hand to get through the login and the review:

Documents come into it only when you're changing something during the same session. Modifying your address, directors, or bank details means uploading proof, and that path carries the ₹200 fee covered earlier.

Freelancers and service exporters usually fall in the first camp. No shipments, no new branches, nothing to prove. You log in, read through three sections, sign with an Aadhaar OTP, and you're out in ten minutes.

What Is the Deadline for IEC Renewal (Updation)?

June 30 is the deadline every year. The window opens on April 1 and closes on June 30, giving you 90 days to complete a task that usually takes ten minutes.

If you miss it, DGFT will deactivate the IEC from July 1. There's no grace period, no warning notice, and no intermediate suspended state where you can still operate while you sort it out. The status flips to deactivated and stays there until you file the pending update.

The window itself comes from DGFT Notification No. 58/2015-20 dated February 12, 2021, the same amendment that made annual updation compulsory.

DGFT does send reminders by email and through portal alerts, but those go to the contact details sitting in your profile. If that email is stale, the reminders land somewhere you'll never see, and the responsibility for filing on time stays with you regardless.

For anyone billing foreign clients, there's a practical reason to move early. Your inward payments go through banks that verify IEC status, so a deactivation in July can intercept funds that are already on their way from a client. Which brings up what actually happens when the deadline slips.

What Happens If IEC Renewal (Updation) is Missed?

The IEC is automatically deactivated on July 1, without notice or an officer reviewing your case. Four things follow.

Customs stops clearing shipments. ICEGATE blocks shipping bills and bills of entry, so cargo already at a port sits there while demurrage builds.

Banks can hold your foreign payments. Inward remittances tied to a deactivated IEC get questioned or frozen. Service exporters get caught here most often, since they have no shipments and assume an inactive IEC is only a paperwork issue.

Incentives and refunds pause. Pending scheme benefits, subsidies, and GST refunds stay unprocessed until the code is active.

Trade partners notice. A deactivated IEC is seen as a compliance lapse by banks and buyers.

All of it is reversible. Completing the pending update restores the code, which the next section covers.

How to Reactivate a Deactivated IEC Code?

Reactivation runs through the same annual updating process, just filed after the deadline. The portal keeps accepting the pending update even though the window closed on June 30, and there's no separate reactivation form to hunt for.

DGFT charges no penalty for filing late. What the delay costs you is time, because imports, exports, and foreign payment processing remain blocked until the reactivation is reflected across systems.

ICEGATE matters again here. Allow 24 to 48 hours after the DGFT status turns active before booking customs clearance, since customs works off the ICEGATE record rather than the DGFT one.

An active IEC opens the door. Getting the money through it is the next job.

Skydo gives Indian exporters and freelancers free virtual accounts in USD, EUR, GBP, SGD, AUD, and CAD. Share the details with a foreign client and payments arrive directly, with no SWIFT copies to chase.

Fees are flat rather than a percentage that grows with your invoice: $19 for invoices under $2,000, $29 for invoices up to $10,000, and 0.3% for invoices above that. Skydo estimates banks take up to 8% through forex markups and charges.

Every transaction includes a free FIRA. Credit is available within 1 working day, setup takes 5 minutes, and there are no monthly fees.

For DGFT compliance, <a href="https://www.skydo.com/">Skydo</a> also assists with eBRC closure. Link your account, bulk-upload shipping bills, and generate the eBRC with a click. EDPMS closure help is available too.

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What Is an IEC Code and Why to Register for it?

An <a href="https://www.skydo.com/blog/iec-code">IEC</a>, or Importer-Exporter Code, is a 10-digit business identification number issued by the Directorate General of Foreign Trade (DGFT). You need it to legally import or export goods and services across India's borders.

After GST, your IEC uses the same number as your PAN. But it doesn't appear automatically when you get a PAN. It's a separate certificate you apply for through DGFT, and you only ever get one IEC per PAN. Once issued, it stays valid for the life of your business, with no renewal fee or expiry date. The only catch is a mandatory annual update on the DGFT portal, which we'll cover later.

So why does it matter? An IEC does a few specific jobs:

What Documents Are Required for IEC Registration?

You need five core documents at the time of <a href="https://www.skydo.com/blog/iec-code-registration">applying for an IEC code online</a>:

Then there are the entity-specific documents. Companies and partnerships need the Director's or Partner's PAN plus a registration document: the Certificate of Incorporation with MoA/AoA for companies, an LLP Agreement for LLPs, or a Partnership Deed for firms. Trusts and societies submit their trust deed or society registration certificate.

At the time of filing, you'll authenticate with an Aadhaar OTP or a Digital Signature Certificate (DSC).

How to Apply for IEC Code Online: Step-by-Step DGFT Process

The whole process is online, done on the official DGFT portal at dgft.gov.in. No office visit, no physical paperwork. Proprietorships, partnerships, LLPs, private limited companies, trusts, and societies can all apply the same way.

Go to <a href="http://dgft.gov.in">dgft.gov.in</a>.

On the homepage, open the 'Services' tab and select 'IEC Profile Management.' Register as a new user (importer/exporter) using your PAN, email, and mobile number. Verify with the OTP to get a temporary password. Log in and change it right away.

<a></a>Step 3: Start a fresh IEC application (Form ANF 2A)

From your dashboard, click "Apply for IEC" and begin a new application. Pick the entity type that matches your business. Enter your legal business name exactly as it reads on your PAN and GST records, then add proprietor, director, or partner details along with your bank information.

Upload scanned copies of your PAN, proof of identity, proof of business address, canceled cheque or bank certificate, and any entity-specific documents like an incorporation certificate, partnership deed, or LLP agreement.

The government fee is ₹500, paid through the Bharatkosh gateway. It accepts net banking, debit or credit card, and UPI. Download the receipt once payment goes through.

Sign using either an Aadhaar OTP or your DSC, then submit. DGFT issues the IEC electronically and sends it to your registered email. If your details and documents are correct, this usually takes 1 to 3 working days. You can also download the certificate from the portal any time after it's issued.

Further Read: IEC code verification online → <a href="https://www.skydo.com/blog/iec-code-verification-online">https://www.skydo.com/blog/iec-code-verification-online</a>

What Are the Fees and Processing Time for IEC Registration?

The government fee is ₹500, and that's the only mandatory cost if you apply yourself on the DGFT portal. Processing usually takes 1 to 3 working days once you've submitted a complete, error-free application. DGFT issues the certificate electronically and emails it to you, and you can download it from the portal whenever you need it.

There are no recurring fees after that. Your IEC is a one-time registration valid for the life of your business, and the only ongoing requirement is the free annual update on the DGFT portal.

Costs go up if you hand the job to a consultancy instead of filing directly. One common market example: a Digital Signature Certificate costs around ₹999, and professional fees add roughly ₹2,000, bringing the total to about ₹3,499 through a third party. Filing yourself on the portal skips all of that.

How Does Skydo Help Once Your IEC Code is Ready?

Your IEC clears you to export. But you still need a way to actually receive the money your foreign clients send, and that's where banks quietly eat into your earnings, charging up to 8% in hidden fees on incoming payments.

Skydo is a cross-border payment platform designed for Indian exporters, freelancers, and service businesses that receive international payments. You get free virtual accounts in six currencies (USD, EUR, GBP, SGD, AUD, and CAD) to share with clients like local bank details. Setup takes 10 to 15 minutes, fully online.

Pricing is flat, with no monthly charge: $19 for $0– $2,000, $29 for $2,000 to $10,000, and 0.3% above $10,000. Every transaction generates a free FIRA automatically, and you can link your DGFT account to bulk-generate eBRC in a single click. Settlements land within one working day.

→<a href="https://www.skydo.com/"> https://www.skydo.com/</a>

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What Are IEC Code Charges for Registration?

IEC code charges are the fees you pay to get an <a href="https://www.skydo.com/blog/iec-code">Import Export Code</a> from the Directorate General of Foreign Trade, or DGFT. The IEC is a 10-digit number that works as your business's license to import or export goods and services from India. Without it, your shipment won't clear customs, and your bank can't process an export payment.

The government fee for a new IEC is ₹500. You pay it online on the official DGFT portal (<a href="http://dgft.gov.in">dgft.gov.in</a>), and it's the same ₹500 whether you're a small home exporter or a large trading company, and whether you import, export, or both.

Suppose you run a handloom business in Bhagalpur, and you've just landed your first order from a buyer in Germany. To ship it out and get paid, you need an IEC. Your cost to the government for that code is ₹500, no matter how big or small that first order is.

There are a few other charges you might run into, but they're situational:

IEC Code Registration Charges &amp; Fees: A Full Breakdown

Your total IEC cost depends entirely on how you apply. Do it yourself on the DGFT portal, and you'll pay ₹500. Hand it to a professional service, and you're looking at anywhere from ₹1,500 to ₹5,000 or more, once you add their fee, GST, and a DSC if they insist on one.

A few of these rows deserve a closer look.

Are There Any Hidden Charges for IEC Code Registration?

Applied directly on the DGFT portal, an IEC has no hidden charges. The ₹500 is the full government cost for a new registration, and the portal shows you exactly what you're paying before you confirm.

Hidden costs show up when a third party sits between you and the portal. That's where you might see line items for documentation, consultancy, DSC procurement, or priority processing that DGFT itself doesn't charge for. Some agencies also add 18% GST on their service fee, which is legitimate, though it should be shown clearly rather than buried in a lump sum.

Two official charges do catch people off guard, even though they aren't hidden. A modification to your IEC costs ₹200, and a duplicate certificate costs another ₹200. First-time applicants rarely think about these until they need to change a bank detail or an address months later.

If you want to keep your cost to the ₹500 minimum, three habits help:

How to Pay IEC Code Registration Fees Online on the DGFT Portal?

You pay the IEC fee online on the DGFT portal using net banking, a debit or credit card, or UPI. It all happens inside the same application flow, so there's no separate payment site to visit.

Here's how the payment fits into the application, step by step:

Payments are processed through the BharatKosh government gateway, so the funds go directly to DGFT. The fee is ₹500 for a new application and ₹200 for a modification. Once you've submitted, DGFT usually processes and approves the IEC within one to three working days.

What Is the Refund Policy for IEC Code Charges?

The ₹500 IEC fee is non-refundable once you've paid it. Even if DGFT rejects your application, cancels it, or turns it down due to an error, that money stays with the government, and you have to pay again to reapply.

When you lose the fee: a rejection due to the wrong PAN, a document mismatch, or a mistake in the form means the ₹500 is forfeited. There is no appeal for the fee itself. You fix the error, resubmit, and pay a fresh ₹500.

When a refund is possible: DGFT considers refunds only in narrow cases, such as a duplicate payment, an excess amount paid by mistake, or a payment that went through without any application being started.

To claim one of those eligible refunds, file an online request through the e-Refund Management Process on the DGFT portal, with your transaction reference number and proof of payment. If DGFT verifies it, the extra amount is either refunded or adjusted against a future IEC application.

You can bring your IEC cost down to just ₹500, the government fee, by applying yourself on the DGFT portal and using Aadhaar e-sign instead of buying a Digital Signature Certificate. Everything above ₹500 is optional, so reducing your cost is mostly about skipping the extras you don't need.

There's no renewal fee for an IEC. Once DGFT issues it, the code is valid for life. It doesn't expire, and you never re-register or pay to keep it.

There is one yearly task, though, and it trips people up because it sounds like a<a href="https://www.skydo.com/blog/iec-renewal"> renewal</a>. Between April 1 and June 30 every year, DGFT requires a free electronic update in which you log in and confirm that your IEC details are current. You do it even if nothing about your business has changed. Think of it as ticking a box to say the IEC is still in use.

Miss that window and DGFT can mark your IEC inactive. A deactivated code can't be used for import or export, so a shipment can get stuck at customs or a payment can stall until you reactivate it. The update takes a few minutes, so it's worth putting a reminder in your calendar for early April.

What Are the Next Steps After Paying IEC Code Charges?

After you've paid the ₹500, the immediate steps are to complete the application submission, download your receipt, wait 1 to 3 working days for DGFT to verify it, and then download your issued IEC certificate. Getting the certificate is really the start, not the finish. A few things need to happen before you can trade and get paid.

Say your IEC gets approved on a Tuesday. By Wednesday you've registered on ICEGATE and emailed your bank to map the code. By the time your first shipment leaves, the paperwork side is done, and the only thing left is making sure the payment from your buyer actually reaches you cleanly.

How Does Skydo Help Exporters Receive Foreign Payments After IEC?

An IEC gives you the legal right to export. It doesn't tell you how to collect the foreign currency your buyer sends, and that's where many first-time exporters lose money without realizing it. This is the gap Skydo fills.

Traditional bank wires can quietly eat up to 8% of an international payment through forex markup and wire charges, so the amount that lands in your account is smaller than what your buyer sent. Skydo replaces that with a flat, predictable fee: ₹19 for payments under $2,000, ₹29 for payments between $2,000 and $10,000, and 0.3% above $10,000. No monthly fee, no surprise deductions.

Setup takes about 5 minutes, with no branch visit and no relationship manager calls. → <a href="https://www.skydo.com/">https://www.skydo.com/</a>

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Export compliance means adhering to the domestic and international laws that control the movement of physical goods, software and technology across borders, along with the financial transactions tied with it. Every cross-border transaction falls into three core categories:

Export compliance requirements can also continue after goods or technology have crossed the border. For example, sharing controlled technology with a foreign national inside domestic offices may constitute a “deemed export” under applicable export-control rules.

<a></a>Who Does Export Compliance Apply to in India?

Export compliance in India applies to any enterprise or individual dispatching physical goods, transferring intangible assets, or providing services to overseas clients where the transaction qualifies as an export of services under applicable regulations. Operating a laptop and serving an international client can therefore bring applicable foreign-exchange and tax compliance requirements into play, even without a physical shipment.

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