Step by Step process for RoDTEP Scheme -A step towards Zero Rating of exports- FTP
Background:
Foreign Trade Policy 2015-20 and other schemes provide promotional measures to boost India’s exports with the objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field. Most of the incentive schemes like MEIS etc. implemented under FTP are not World Trade Organization (WTO) compliant as the rate of incentives provided under such schemes will not reimburse all of the State and Local levies which are still incorporated in the price of the goods exported. Due to which there is a deviation in the basic principles of foreign trade “Goods are exported, taxes are not”.
India being a member of WTO has to follow the guidelines/conditions specified in the WTO agreement. However, the United States has challenged the following export subsidy schemes given by the Indian Governments to their exporters as prohibited export subsidies, since these schemes are inconsistent with the WTO agreements
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