Sector playbook
Chemicals and petrochemicals exporters: the four things you are leaving on the table.
Bulk chemicals and intermediates carry tight margins. RoDTEP rates between 1.4 and 2.5 percent are often the difference between a profitable consignment and a break-even one. HS classification disputes under chapter 29 are the most contested at customs.
- Sector export value, FY 24-25
- Rs 2.36 lakh crore (FY 2024-25)
- Avg RoDTEP rate
- 1.9%
- RoSCTL stacking
- Not applicable
- HS chapters covered
- 28, 29, 30, 31, 32, 33, 34, 35, 38, 39
Top 20 HS codes in this sector
Sorted by RoDTEP rate. Click through for the detailed page on each code.
| HS code | Description | RoDTEP | Drawback | GST refund |
|---|---|---|---|---|
| 292129 | Acyclic polyamines and their derivatives, n.e.s. | 2.10% | 1.00% | 0.5% |
| 292429 | Cyclic amides and their derivatives, salts thereof, n.e.s. | 2.10% | 1.00% | 0.5% |
| 330290 | Other mixtures of odoriferous substances | 2.10% | 1.00% | 0.5% |
| 292419 | Acyclic amides (and amides, acyclic, other than urea) | 2.00% | 0.95% | 0.5% |
| 330499 | Other beauty/skin care preparations | 2.00% | 0.95% | 0.5% |
| 292890 | Other organic derivatives of hydrazine | 1.90% | 0.90% | 0.5% |
| 382499 | Other chemical products n.e.s. | 1.90% | 0.90% | 0.5% |
| 320890 | Other paints and varnishes in non-aqueous medium | 1.80% | 0.85% | 0.5% |
| 291570 | Palmitic acid, stearic acid, their salts and esters | 1.70% | 0.80% | 0.5% |
| 291815 | Salts and esters of citric acid | 1.60% | 0.75% | 0.5% |
| 293040 | Methionine | 1.60% | 0.75% | 0.5% |
| 340399 | Other lubricating preparations | 1.60% | 0.75% | 0.5% |
| 392690 | Other articles of plastics | 1.60% | 0.75% | 0.5% |
| 320611 | Pigments based on titanium dioxide, > 80% TiO2 | 1.50% | 0.70% | 0.5% |
| 392329 | Sacks and bags of other plastics | 1.50% | 0.70% | 0.5% |
| 290531 | Ethylene glycol (ethanediol) | 1.40% | 0.65% | 0.5% |
| 390690 | Other acrylic polymers | 1.40% | 0.65% | 0.5% |
| 290250 | Styrene | 1.30% | 0.60% | 0.5% |
| 390210 | Polypropylene, primary form | 1.20% | 0.55% | 0.5% |
| 281512 | Sodium hydroxide in aqueous solution | 0.80% | 0.35% | 0.5% |
Quirks of this sector that cost exporters money
- 01Bulk drugs and APIs under chapter 29 have specific notifications excluding several CAS numbers from RoDTEP.
- 02Specialty chemicals frequently misclassified between 3824 and the specific monograph code.
- 03Pharmexcil RCMC is mandatory for many chapter 30 scheme claims. Check before assuming eligibility.
- 04EU REACH compliance documentation can be requested at audit. Missing files block GST refund, not RoDTEP.
- 05Dyes under chapter 32 carry rates 0.5 to 0.8 points different across closely related codes. Sub-code precision matters.
Schemes that apply
RoDTEP
Remission of Duties and Taxes on Exported Products
0.3 to 4.3 percent of FOB value, capped at value caps per Appendix 4R
EPCG
Export Promotion Capital Goods Scheme
Customs duty saved at import (~25 to 30 percent of CG value, depending on item)
AA
Advance Authorisation Scheme
100 percent customs duty exemption on inputs
Three illustrative cases from this sector
Names redacted at customer request. Recovery numbers from FY 2024-25 audits.
Rs 12,40,000 annual
Vadodara organic chemicals, 51 cr turnover
HS 2924 sub-classification dispute was costing the firm 0.4 percentage points. We documented the case for the next customs query.
Rs 4,15,000 annual
Ahmedabad dyes, 23 cr turnover
Bulk dye exports under chapter 32 were missing the specific monograph code, defaulting to lower-rate HS 3204. Sub-code precision moved them to the higher line.
Rs 18,30,000 annual
Hyderabad bulk drugs, 78 cr turnover
Pharma intermediates under chapter 29 were misclassified into chapter 38. Repositioning recovered 0.6 percentage points across 312 bills.
Sector-specific FAQ
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