RoDTEP Scheme

RoDTEP Scheme

Context: The Indian government is developing a system to verify tax refunds provided under the Remission of Duties and Taxes on Exported
Products (RoDTEP) Scheme. It aims to prevent countervailing duties (CVDs) imposed by major importing countries like the EU and the USA. Countervailing duties (CVDs) are tariffs levied by importing countries to counter subsidies offered by exporting nations, protecting their domestic industries.

Need for Verification

• USA requested clarity on India’s method for verifying the rates provided to exporters under the Scheme.
• The commerce ministry determines the RoDTEP rates based on recommendations of the GK Pillai committee. The USA does not recognise the method and is seeking an official verification system.

New Verification Mechanism

• The Finance and Commerce Ministries are collaborating to establish an institutional verification system for
RoDTEP. This system will likely involve:
• Defined procedures and formats for verification.
• Deployment of teams at the field level to conduct verifications.
• Collaboration with the Directorate General of Trade Remedies (DGTR).