Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Remission of Duties and Taxes on Export Products (RODTEP) Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level : RODTEP Scheme

Mains level : Not Much

The notification of benefit rates payable to exporters under the Remission of Duties and Taxes on Export Products (RODTEP) scheme is expected to take more time as it is facing ‘teething issues’.

Try this PYQ:

Q.Among the following, which one is the largest exporter of rice in the world in the last five years? (CSP 2019)

(a) China

(b) India

(c) Myanmar

(d) Vietnam

RODTEP Scheme

  • RoDTEP is a scheme for Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
  • It has replaced the current Merchandise Exports from India Scheme, which is not in compliance with WTO norms and rules.
  • The new RoDTEP Scheme is a fully WTO compliant scheme.
  • It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.

Why need such a scheme?

  • The scheme was announced last year as a replacement for the Merchandise Export from India Scheme (MEIS), which was not found not to be compliant with the rules of the World Trade Organisation.
  • Following a complaint by the US, a dispute settlement panel had ruled against India’s use of MEIS as it had found the duty credit scrips awarded under the scheme to be inconsistent with WTO norms.

Back2Basics: Merchandise Exports from India Scheme (MEIS)

  • MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
  • This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and will be in existence till 2020.
  • MEIS intended to incentivize exports of goods manufactured in India or produced in India.
  • The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
  • The MEIS covered almost 5000 goods notified for the purpose of the scheme.
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments