Export Incentives: Understanding MEIS/RODTEP Schemes for Indian Sellers
–- MEIS gives a 4 % export rebate on landed cost, while RODTEP offers a 2 % rebate on freight and handling charges.
- Eligibility hinges on FSSAI, GST, and export‑logistics partners (e.g., Delhivery, Shadowfax).
- Leveraging Edgistify’s EdgeOS and Dark Store Mesh can cut lead‑time, boost compliance, and maximize incentive claims.
Introduction
The Indian e‑commerce landscape is shifting fast. While metros like Mumbai and Bangalore dominate, tier‑2 and tier‑3 cities—Guwahati, Jaipur, and Pune—are now pulling up the flag. Yet, many sellers still grapple with cash‑on‑delivery (COD) expectations, return‑to‑origin (RTO) complications, and the high cost of cross‑border logistics. The Government’s Minimum Export Incentive Scheme (MEIS) and Ready Overseas Delivery To Exporters Programme (RODTEP) are designed to tip the balance in favor of exporters, but only if sellers know how to navigate them.
MEIS: The Minimum Export Incentive Scheme
Eligibility Matrix
| Criteria | Minimum Requirement | Notes |
|---|---|---|
| Export Volume | ≥ ₹1 crore in a 12‑month period | Self‑declared, verified by customs |
| Exporter Registration | E‑commerce exporter certificate | Issued by the Ministry of Commerce |
| Payment Mode | Pre‑payment or net payment | COD not eligible |
| Product Category | Excludes restricted goods (e.g., alcohol) | Check the latest list |
Incentive Structure
| Export Type | Landed Cost | Incentive Rate | Net Benefit |
|---|---|---|---|
| Goods | ₹100,000 | 4 % | ₹4,000 |
| Services | ₹200,000 | 4 % | ₹8,000 |
Problem–Solution Matrix for Tier‑2 Sellers
| Problem | Causes | Solution (MEIS) |
|---|---|---|
| High landed cost due to customs duties | Duty‑on‑import (DPI) | 4 % rebate reduces net landed cost |
| Cash‑flow strain from COD | Cash outlay before delivery | Pre‑payment through e‑commerce gateways |
| Limited logistics partners | Dependence on local couriers | Partner with national carriers like Delhivery |
RODTEP: Ready Overseas Delivery To Exporters Programme
What RODTEP Covers
- Freight & Handling Charges (up to 2 % of the total export value)
- Customs Formalities (simplified documentation)
- Insurance & Tracking (via partner networks)
Eligibility & Incentive Table
| Requirement | Threshold | Incentive |
|---|---|---|
| Export Volume | ₹50 lakh in 12 months | 2 % on freight & handling |
| Mode of Export | Sea, Air, Rail | Same incentive rate |
| Partner Network | Signed with RODTEP‑approved logistics | Valid for claims |
Use‑Case: Guwahati Seller
A small apparel brand in Guwahati exported ₹80 lakh in 2023. By switching to RODTEP‑approved Shadowfax for air freight, they secured ₹1.6 lakh in rebates, cutting overall logistics cost by 8 %.
How to Claim & Optimize These Schemes
- 1. Register Early – Obtain the exporter certificate and link it to your e‑commerce platform.
- 2. Track Shipments with EdgeOS – EdgeOS’s real‑time visibility ensures you hit the 12‑month window for claims.
- 3. Leverage Dark Store Mesh – Position dark‑stores near major ports (Mumbai, Chennai) to reduce inland freight.
- 4. Implement NDR Management – Manage “Non‑Delivery Reports” to avoid costly RTOs; NDR data feeds into customs claims.
- 5. Maintain Detailed Records – Keep invoices, customs clearance documents, and EdgeOS logs for audit trails.
Conclusion
MEIS and RODTEP are not just subsidies—they are strategic levers that can transform the profitability of Indian exporters, especially those operating from tier‑2 and tier‑3 markets. By aligning logistics with Edgistify’s EdgeOS, Dark Store Mesh, and NDR Management, sellers can streamline compliance, cut lead times, and maximize incentive claims. The next step? Map your current export workflow against these eligibility criteria and start claiming what the government is already ready to give.
FAQs –
- 1. What is the difference between MEIS and RODTEP?
- 2. Can I claim MEIS if I use COD for my overseas customers?
No. MEIS requires pre‑payment or net payment; COD is not eligible.
- 3. Do I need to use a specific courier to qualify for RODTEP?
Yes. You must partner with a RODTEP‑approved logistics provider like Delhivery or Shadowfax.
- 4. How do I track my incentive claims?
Use EdgeOS for real‑time shipment status and maintain all export documentation for audit.
- 5. Is there a minimum export volume to qualify for MEIS?
Yes, exporters must have a minimum of ₹1 crore in export volume over the last 12 months.