Centre developing mechanism to validate refund claimed under RoDTEP

The government is developing a ‘verification mechanism’ to validate the refund claimed by exporters under Remission of Duties and Taxes on Export Products (RoDTEP). This will ensure that countries don’t retaliate against the scheme claiming that the reimbursements paid are subsidies.

The scheme came into effect over three years ago to refund the embedded non-creditable central, state and local levies paid on inputs to exporters to boost India’s exports.
 

However, last year, countries, including the United States (US), imposed countervailing or anti-subsidy duty on a few Indian products as retaliation against RoDTEP.
 

India has been strongly defending the subsidy allegation and