Economics · Economy
The Foreign Trade Policy (FTP) 2023 introduced the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) as a replacement for the discontinued Merchandise Exports from India Scheme (MEIS). Which of the following accurately describes the core principle distinguishing RoDTEP from MEIS in the context of global trade compliance and World Trade Organization (WTO) norms?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1RoDTEP mandates that all export proceeds must be realized within 90 days, a condition that was relaxed under the earlier MEIS scheme.
- 2Unlike MEIS, RoDTEP is an export subsidy program notified under the WTO's Agreement on Subsidies and Countervailing Measures (SCM) to give India a competitive edge.
- 3RoDTEP operates on the principle of remitting embedded Central, State, and local levies that are not refunded through other mechanisms like GST, ensuring the WTO compliance of the scheme as a duty neutralisation measure.✓
- 4RoDTEP allows for the refund of all duties and taxes, including corporate income tax and GST, which were previously fully borne by exporters under MEIS, thereby increasing the effective incentive rate.
Correct answer
RoDTEP operates on the principle of remitting embedded Central, State, and local levies that are not refunded through other mechanisms like GST, ensuring the WTO compliance of the scheme as a duty neutralisation measure.
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