Government considering revamping of RoDTEP following anti-subsidy actions

Hit by two anti-subsidy actions from US and EU, the government is looking to revamp the Remission of Duties and Taxes on Exported Goods(RoDTEP) scheme. RoDTEP was implemented 3 years ago, replacing the Merchandise Exports from India Scheme(MEIS), which was found to be non-compliant with World Trade Organization(WTO) regime.

The government has been informed that exporters in some cases may be getting more duty than they had paid and ideally the payment should be in line with the actual payment of taxes.

The government could build a more robust and exhaustive verification system for the refunds. The intent is to look at ways to verify the claims of Exporters and the payments to be made to them but still being wary that the system does not turn into an exercise that puts burden on businesses and makes life difficult for the exporters.

Businesses and exporters on their part could streamline this by maintaining complete records and Audit trails to simplify this activity. Timely and Accurate availability of information can help exporters ensure that they are on the right side of any such exercise.

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Haresh Calcuttawala Kharbanda Sunil Shailesh Sapale