Lok Sabha Question No. 1724 (UNSTARRED), answered on 2023-12-13
Subject: RODTEP Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1724 TO BE ANSWERED ON 13/12/2023

## RODTEP SCHEME

## 1724.   SHRI MANISH TEWARI:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

(a) the details of Remission of Duties or Taxes on Export Products (RODTEP) scheme;

(b) the  rationale  for  replacing  the  existing  Merchandise  Exports  from  India  Scheme (MEIS) considering that India had already appealed against the finding of the WTO Panel in 2019 against MEIS;

(c) whether it is true that the EU and the US have imposed countervailing duties (CVD) against India in response to the RODTEP scheme and if so, the reasons given by them to do so;

(d) whether India has responded to their contentions and if so, the steps taken to settle this dispute amicably between the concerned parties;

(e) the details of the products on which the CVDs have been imposed;

(f) whether  the  EU  and  the  United  States  have  made  any  justification  regarding  the products on which the CVDs have been imposed and if so, the details thereof; and

(g) whether India is willing to issue a formal dispute before the WTO if the issue isn't resolved bilaterally and if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a): Remission  of  Duties  or  Taxes  on  Export  Products  (RoDTEP)  scheme  has  been implemented  for  exports  w.e.f  01.01.2021  to  refund,  currently  un-  refunded  taxes/  duties/ levies, which are not being refunded under any other mechanism, at the central, state and local level,  but  which  are  incurred  in  the  process  of  manufacture  and  distribution  of  exported products. The details on RoDTEP scheme guidelines and rates are available at https://www.dgft.gov.in. The Scheme is being implemented by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue in an end to end IT environment.

(b): Merchandise Exports from India Scheme (MEIS), which was operational for exports from 01.04.2015 to 31.12.2020, was a scheme to offset infrastructural inefficiencies and associated costs. RoDTEP Scheme, which is a duty remission scheme, is not a replacement scheme to MEIS and both the schemes operate on different principles and there is no correlation between the two schemes.

The US had challenged the MEIS at WTO in DS541. The appeal filed by India against the said Panel report stands withdrawn and the dispute stands terminated, following the notification of mutually agreed solution by India and the US.

(c) to (f): 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 United States of America (USA) and Certain graphite electrode systems by 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.

While imposing CVD, it has been stated that there is a need for a reasonable and effective system to confirm inputs, consumption amount and imposed indirect taxes.

(g): Any party may approach the WTO Dispute Settlement mechanism, if a WTO member adopts any measure that are inconsistent with the agreements under the WTO.

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