Countermeasures on RoDTEP by US and EU

  • The U.S. and the European Union have now imposed countervailing duties (CVD) 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.
  • The products for which countervailing investigations have been conducted and a final determination of CVD has been made include paper file folders, common alloy aluminum sheet and forged steel fluid end blocks by the U.S. and certain graphite electrode systems by the European Commission (EC).
  • “The Indian government and the affected exporters have strongly defended the subsidy allegation against various programs & schemes of the government, both at Central & State level, in their written and oral responses during the conduct of investigations.”

Remission of Duties and Taxes on Export Products (RoDTEP) scheme

  • This scheme has been introduced by the Government of India by making amendments in the Foreign Trade Policy 2015-20.
  • The scheme has been introduced with an objective to neutralize the taxes and duties suffered on exported goods which are otherwise not credited or remitted or refunded in any manner and remain embedded in the export goods.
  • This scheme provides for rebates of all hidden Central, State, and Local duties/taxes/levies on the goods exported which have not been refunded under any other existing scheme.
  • This does not only include the direct cost incurred by the exporter but also the prior stage cumulative indirect taxes on goods.
  • It is a WTO compliant Scheme and follows the global principle that the taxes/duties should not be exported; they should be either exempted or remitted to exporters, to make the goods competitive in the global market.
  • The RoDTEP scheme has been made effective for the exports from 1st January 2021.

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