New Delhi: The government is working on a verification system to help exporters deal with cases of countervailing duty on domestic products on the RoDTEP scheme, an official said.
This practice is significant because countervailing or anti-subsidy duties were imposed on some domestic units by the US and the European Union (EU).
The products examined by these countries included reimbursement of electricity duty, VAT on fuel or APMC taxes under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
This scheme is a WTO (World Trade Organization) compliant measure.
The official said duty was imposed only on a few units and that too because they could not produce correct documents to the investigating authorities.The Commerce Ministry is helping Indian exporters maintain proper documentation to deal with these matters.
“We will give guidance notes from DGTR (Directorate General of Trade Remedies) to the units so that whenever there is an investigation, they are in a position to provide proper documents,” the official said.
Apart from examining the documents of the units, the investigating officers also pay attention to the official verification mechanism to ensure that the incidents of government duties are not being investigated randomly.
On the government side, the official said, "We are trying to set up a joint verification mechanism of DGFT (Directorate General of Foreign Trade), DGTR and DOR (Department of Revenue), where officials will randomly verify some units on this issue And keep records”.
This system will help in verifying the claims that a unit is receiving under the RodTEP scheme."Suppose we are giving reimbursement of 1.7 per cent to RodTEP, I do not need to convince myself from time to time that the actual incidence of duties of the unit is not less than 1.7 per cent," the official said.
"So we will set up this verification system. We will maintain records to show that we also have official verification to investigate off-duty incidents," the officer said.
Before imposing a countervailing or anti-subsidy duty (CVD), a country conducts detailed investigations on products that it believes its trading partner is subsidizing for export purposes. Giving subsidy on exports is a type of unfair trade practice.Countervailing duty can be imposed only if the investigating agency of the importing country determines that imports of the product concerned are subsidized and are causing injury to the domestic industry.
Imposition of this duty does not impose a ban or restriction on imports. The World Trade Organization (WTO) allows its member countries to use these tools to provide a level playing field to their domestic players.
The US had conducted a counter-investigation and submitted a final decision on three Indian products – Paper File Folders, Plain Aluminum Sheet and Forged Steel Fluid End Blocks.
The European Commission had also conducted similar investigations on some graphite electrode systems in India.The Government of India and the affected exporters have strongly defended the allegation of subsidy against various programs and schemes of the Government at both the Central and State levels in their written and oral responses during the investigation.
RoDTEP scheme for exports has been implemented from January 2021 to refund the currently unrefunded taxes/duties/levies which are not being refunded under any other mechanism at the Central, State and local levels, But which are incurred in the process of manufacturing. and distribution of exported products.
The scheme is being implemented in an end-to-end IT environment by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue.
This practice is significant because countervailing or anti-subsidy duties were imposed on some domestic units by the US and the European Union (EU).
The products examined by these countries included reimbursement of electricity duty, VAT on fuel or APMC taxes under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
This scheme is a WTO (World Trade Organization) compliant measure.
The official said duty was imposed only on a few units and that too because they could not produce correct documents to the investigating authorities.The Commerce Ministry is helping Indian exporters maintain proper documentation to deal with these matters.
“We will give guidance notes from DGTR (Directorate General of Trade Remedies) to the units so that whenever there is an investigation, they are in a position to provide proper documents,” the official said.
Apart from examining the documents of the units, the investigating officers also pay attention to the official verification mechanism to ensure that the incidents of government duties are not being investigated randomly.
On the government side, the official said, "We are trying to set up a joint verification mechanism of DGFT (Directorate General of Foreign Trade), DGTR and DOR (Department of Revenue), where officials will randomly verify some units on this issue And keep records”.
This system will help in verifying the claims that a unit is receiving under the RodTEP scheme."Suppose we are giving reimbursement of 1.7 per cent to RodTEP, I do not need to convince myself from time to time that the actual incidence of duties of the unit is not less than 1.7 per cent," the official said.
"So we will set up this verification system. We will maintain records to show that we also have official verification to investigate off-duty incidents," the officer said.
Before imposing a countervailing or anti-subsidy duty (CVD), a country conducts detailed investigations on products that it believes its trading partner is subsidizing for export purposes. Giving subsidy on exports is a type of unfair trade practice.Countervailing duty can be imposed only if the investigating agency of the importing country determines that imports of the product concerned are subsidized and are causing injury to the domestic industry.
Imposition of this duty does not impose a ban or restriction on imports. The World Trade Organization (WTO) allows its member countries to use these tools to provide a level playing field to their domestic players.
The US had conducted a counter-investigation and submitted a final decision on three Indian products – Paper File Folders, Plain Aluminum Sheet and Forged Steel Fluid End Blocks.
The European Commission had also conducted similar investigations on some graphite electrode systems in India.The Government of India and the affected exporters have strongly defended the allegation of subsidy against various programs and schemes of the Government at both the Central and State levels in their written and oral responses during the investigation.
RoDTEP scheme for exports has been implemented from January 2021 to refund the currently unrefunded taxes/duties/levies which are not being refunded under any other mechanism at the Central, State and local levels, But which are incurred in the process of manufacturing. and distribution of exported products.
The scheme is being implemented in an end-to-end IT environment by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue.
