1. Summary
  2. WTO’s findings against Export Schemes
  3. Requisites of providing the info


The WTO’s dispute settlement panel dominated that India’s export grant schemes, together with the availability of special economic zones, profaned core provisions of worldwide trade norms. several WTO’s findings against Export Scheme are as follows –

  • advantages provided by the Republic of India are subsidies since such benefits don’t have any direct correlation with the payment of taxes;
  • MEIS theme isn’t meant for compensation of taxes however these square measure awards.
  • Taxes refunded don’t seem to be however average;
  • The capital product that is foreign beneath EPCG are used for producing domestic products;
  • By exempting the importation of products in EOU/STP and EPCG theme from custom duties, the Reserve Bank of India has past revenue otherwise due and thus provides monetary contribution;

WTO’s findings against Export Schemes

In this scenery, a brand new theme Remission of Duties & Taxes on the Export product (RoDTEP) is being written by The Ministry of Commerce to interchange the prevailing Schemes. this theme aims to refund un-refunded taxes or duties/ levies, not exempted or rebated nowadays by the other mechanism. The contours of the planned new theme for Remission of Duties and Taxes on the Exported product (RoDTEP) are being elaborate and can be notified severally once approved by the competent authority. within the interim, to see and suggest the rates and price caps for varied things in numerous export sectors beneath the planned theme for Remission of Duties and Taxes on the Exported product (RoDTEP), it’s been determined that the prevailing Sectoral Norms Committees structure within the DGFT Headquarters, also will operate as Sectoral RoDTEP Committees (SRCs).

Therefore, the involved goods boards/Trade & Trade Associations/Chambers of commerce are requested to hunt the info within the prescribed formats from the members of the industry/ firms/ exporters. The involved associations are the nodal agencies to act with the SRCs. The trade bodies square measure requested to supply information to the involved Export Promotion Councils, with relevant un-rebated taxes/ duties/levies employed in the manufacture of the export product(s)in prescribed formats. The involved associations would successively consolidate the info product-wise, supported ITC-HS code, and forward such consolidated information along with all supporting submissions by different exporters/manufacturers and trade associations, for every product within the prescribed proforma to the current committee for additional process

The trade Bodies are requested to compile data received from member exporters/firms and submit it to the involved EPCs. EPCs would additionally compile the info received by them from the exporters/manufacturers. EPCs would successively submit the compiled information in conjunction with supporting documents collected to the territorial Sectoral RoDTEP Committee(s) in DGFT Hqrs, in conjunction with their recommendations, during a separate report. Recommendations created by the EPCs/Associations/Trade Bodies ought to mention the HS Code wise incidence of taxes/ duties/ levies at present terms with relevant FOB price of every product (as per Unit of measuring (UQC) and may be supported with relevant notifications/ circulars/ justifications on tax incidence that are nowadays not refunded by the other mechanism.

Requisites of providing the info

  • data could also be submitted by manufacturers/ manufacturer exporters for each export product severally during a separate file/document altogether 3 proforma/ formats i.e. R1, R2, and R3.
  • information about DTA Unit and/or SEZ unit/ EOU/ FTWZ/ Warehouse beneath section sixty-five of the Customs Act, because the case could also be, must be filed severally for every such unit.
  • A listing of indicative taxes that ought to be counted for estimating the non-reimbursed/nonrefunded tax incidence shall be annexed with the prescribed formats. usually used UQC Codes have additionally been annexed for reference. it’s going to be ensured that solely taxes/ levies/ duties borne on the exported product that is nowadays not obtaining refunded/ reimbursed beneath the other mechanism are counted whereas shrewd the tax incidence on the exported product.
  • Information provided ought to be from manufacturers/manufacturer businesspersons and it ought to be properly scrutinized and authorized by the manufacturer/ manufacturer exporter and their hired bourgeois/Cost Accountant.
  • Whereas forwarding the recommendations on every HS code/export product, the EPCs/ trade bodies have to be compelled to make sure that data from a minimum of 5 units/ companies are enclosed therefore on be representative of the trade. The units ought to have an illustration of the little, medium further as giant manufacturer exporters.
  • The info ought to be supported by relevant documents like sample Shipping Bills of export and different relevant documents forming the idea of calculation, like Mandi rate circular, Electricity Duty circular of the various state and may have correct justifications for counseled tax incidence.
  • The info provided ought to pertain to solely those manufacturers/units that comply with having their records and production processes inspected by the govt for the aim of verification. Verification of data/ processes would be undertaken by DGFT if needed.