Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)

28 Sep 2023 Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)

This article covers “Daily Current Affairs” and the topic details “Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)”. This topic has relevance in the Economy section of the UPSC CSE exam.

For Prelims:

About (RoDTEP)?

For Mains:

GS 3: Economy

Need for the Scheme?

Why in the news:

The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) support, which was notified till 30th September 2023, is now being extended till 30th June 2024 at the same rates as the existing export items.

About (RoDTEP):

• The RoDTEP Scheme, officially known as the Scheme for Remission of Duties and Taxes on Exported Products, is a crucial initiative that supports India’s exporters.
• Under the RoDTEP Scheme, exporters receive rebates based on a certain percentage of the Freight On Board (FOB) value of their exports. These rebates are granted in the form of transferable duty credits or electronic scrips (e-scrips). The details of these e-scrips are digitally recorded and managed by the Central Board of Indirect Taxes and Customs (CBIC).
• The RoDTEP Committee, which operates under the Department of Revenue, plays a pivotal role in this scheme. Its primary responsibility is to assess and recommend the maximum rates for various export sectors eligible for benefits under the RoDTEP Scheme. This committee’s work is vital in ensuring that the scheme effectively supports and promotes India’s export industry.

Objective: 

• The primary goal of the RoDTEP Scheme is to offer extensive assistance to exporters by reimbursing the duties and taxes incurred throughout the production and distribution processes of exported products. It’s worth noting that RoDTEP encompasses taxes, duties, and levies at the central, state, and local levels, which are not reimbursed through any other existing mechanisms.

Financial Allocation: 

• In the financial year 2023-24, the Indian Government has allocated a substantial budget of Rs. 15,070 crores to bolster the RoDTEP Scheme. This allocation underscores the government’s commitment to providing significant financial support to exporters through this initiative.

Stakeholder Engagement: 

• To kickstart its operations, the RoDTEP Committee has recently initiated engagement efforts with Export Promotion Councils (EPCs) and Chambers of Commerce. This proactive approach ensures that key stakeholders in the export industry are involved and informed, fostering cooperation and effective implementation of the scheme.

Need for the Scheme:

• The need for the RoDTEP Scheme arose from a significant challenge India faced in 2018 when the United States raised objections to five of India’s export subsidy programs in the World Trade Organization (WTO). These five schemes were:
  • Merchandise Export from India Scheme (MEIS)
  • Export Oriented Units (EOU)
  • Electronics Hardware Technology Parks (EHTP)
  • Special Economic Zone (SEZ)
  • Export Promotion Capital Goods (EPCG)
• In October 2019, the WTO ruled that these schemes violated WTO agreements by providing prohibited export subsidies. The WTO panel recommended that the Indian government should withdraw these schemes to align with international trade regulations.
• In response to this WTO ruling and the need to comply with international trade rules, the Indian government introduced the RoDTEP Scheme. The RoDTEP Scheme was designed to be WTO-compliant, addressing the concerns raised by the WTO while still providing support to Indian exporters. This move aimed to ensure that India’s trade practices remained in line with international trade regulations and to avoid potential trade disputes with other countries, especially the United States.

Source:https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1961010#:~:text=The%20Scheme%20for%20Remission%20of,to%20the%20existing%20export%20items.

Download Yojna daily current affairs eng med 28th Sep 2023

Q.1 The RoDTEP Scheme, a significant initiative to support India’s exporters, primarily focuses on providing:

1. Direct financial incentives to exporters.
2. Infrastructure development for export industries.
3. Quality control measures for export products.

How many of the above statement/s is/are correct? 

(a) Only one 

(b) Only two 

(c) All three 

(d) None

ANSWER: A

Q.2 Analyze the multifaceted impacts of export promotion policies on a nation’s economy, taking into account both short-term and long-term effects.

rishabh