Government Proposals to Help Exporters in Cases of Countervailing Duties
The government is actively addressing countervailing duty challenges faced by exporters through the RODTEP scheme, according to an official statement.
This effort gains significance as certain domestic units have faced countervailing or anti-subsidy duties from the US and the European Union.
These duties were imposed on products where levies such as electricity duty, VAT on fuel, or APMC taxes were reimbursed under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP), which complies with WTO regulations.
The official clarified that duties were imposed due to insufficient documentation provided by some units during investigations.
To assist exporters, the Ministry of Commerce is facilitating proper documentation through guidance notes from the Directorate General of Trade Remedies (DGTR).
Furthermore, a joint verification mechanism involving DGFT, DGTR, and DoR officials is being established to randomly verify units and ensure compliance with duty incidence.
This system aims to validate claims made under the RoDTEP scheme, ensuring that reimbursement matches the actual duty incidence.
Before imposing countervailing duties, thorough investigations are conducted to identify subsidized products, a practice deemed unfair by the WTO.
Imposition of countervailing duties aims to level the playing field for domestic industries without restricting imports.
Indian government and exporters have vehemently defended against subsidy allegations, both at central and state levels, during investigations.
The RoDTEP scheme, operational since January 2021, refunds unrefunded taxes/duties/levies incurred during manufacturing and distribution of exported products.
Implemented by the Central Board of Indirect Taxes and Customs (CBIC), the scheme operates in an end-to-end IT environment, ensuring efficient processing.
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