Centre not to re-work RoDTEP scheme as it is WTO compliant: officials

Last Updated24/01/2024

The Centre has no plans of re-working the popular Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exporters

The government order despite the US government imposing anti-subsidy duties against it.
the problem was not with the WTO compatibility of the scheme but with the inability of exporters to provide adequate documents to US investigating teams.
The Directorate General of Foreign Trade (DGFT) and the Directorate General of Trade Remedies (DGTR) are now working on familiarising exporters.

“RoDTEP is a remission scheme and is fully WTO compliant.
The RoDTEP scheme, announced in January 2021, replaced the WTO-incompatible MEIS scheme
- Which had faced several challenges from partner countries at the WTO as it was not transparently determined.
RoDTEP was designed carefully to ensure that it was totally transparent and the refund rates were based on embedded duties and taxes
- Such as VAT on fuel used in transportation, mandi tax and duty on electricity used during manufacturing of the exported items.
However, earlier this fiscal, both the US and the EU imposed countervailing (anti-subsidy) duties on Indian products, against RoDTEP payments availed.