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RoDTEP: U.S., EU slap countervailing duties on four Indian goods

  • Published
    15th Dec, 2023

The U.S. and the European Union have now imposed countervailing duties (CVDs) on four Indian products, as a retaliation against the Remission of Duties and Taxes on Export Products (RoDTEP) scheme introduced for outbound shipments in January 2021.

 What is RoDTEP?

  • RoDTEP stands for Remission of Duties and Taxes on Export Products.
  • It is formed to replace the existing MEIS (Merchandise Exports from India Scheme).
  • The scheme will ensure that the exporters receive the refunds on the embedded taxes and duties previously non-recoverable.
  • The scheme was brought about with the intention to boost exports which were relatively poor in volume previously.

Key Features of the scheme

  • Refund of the previously non-refundable duties and taxes:Mandi tax, VAT, Coal cess, Central Excise duty on fuel etc. will now be refunded under this particular scheme. All the items under the MEIS and the RoSTCL (Rebate of State and Central Taxes and Levies) are now under the purview of the RoDTEP Scheme.
  • Automated system of credit: The refund will be issued in the form of transferable electronic scrips. These duty credits will be maintained and tracked through an electronic ledger.
  • Quick verification through digitisation: Through the introduction of the digital platform, the clearance happens at a much faster rate. Verification of the records of the exporters will be done with the help of an IT-based risk management system to ensure speed and accuracy of transaction processing.
  • Multi-sector scheme: Under RoDTEP, all sectors, including the textiles sector, are covered, so as to ensure uniformity across all areas.
  • Countervailing Investigations and Determinations:
    • Countervailing investigations conducted by the U.S. and the European Commission (EC) have led to final determinations of Countervailing Duties (CVD) on various products.
    • Products affected include paper file folders, common alloy aluminum sheet, forged steel fluid end blocks (by the U.S.), and certain graphite electrode systems (by the EC).
  • Defensive Measures and Subsidy Allegations:
    • The Indian government and impacted exporters vigorously defended subsidy allegations related to government programs at both Central and State levels.
    • Strong written and oral responses were presented during the investigation processes.
  • Potential WTO Dispute Resolution:
    • Responding to queries about escalating the matter to the World Trade Organisation (WTO), Minister Anupriya Patel stated that any party can resort to the WTO Dispute Settlement mechanism if inconsistencies with WTO agreements arise.


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