Context:
DGFT extends RoDTEP scheme by one year.
RoDTEP Scheme:
- Purpose – Refunds embedded central, state, and local duties/taxes to exporters that were previously non-refundable.
- Exclusions – Does not rebate duties/taxes already exempted, remitted, or credited.
- Launched on – January 2021.
- Replaced Merchandise Export from India Scheme (MEIS).
- MEIS was non-compliant with World Trade Organisation (WTO) rules due to its provision of export subsidies for a broad spectrum of goods.
- Claim – Based on the percentage of the Freight On Board (FOB) value of exports.
- Rates Notification – By the Department of Commerce.
- Rebates Issuance – In the form of transferable duty credit/electronic scrip (e-scrip).
- Maintenance via – Electronic ledger by the Central Board of Indirect Taxes and Customs (CBIC).
Freight on Board (FOB):
- A shipment term that specifies the point in the supply chain when a buyer or seller becomes liable for the goods being transported.
- Purchase orders between buyers and sellers specify the FOB terms and help determine ownership, risk, and transportation costs.
- FOB Origin –
- Buyer assumes all risk once the seller ships the product.
- Buyer is liable for any damage or loss during transit.
- FOB Destination –
- Seller retains all risk during transit.
- Seller is liable for any damage or loss until the goods reach the buyer.
Source: The Hindu
Previous Year Question
Which of the following best describes the term ‘import cover’, sometimes seen in the news?
[UPSC Civil Services Exam – 2016 Prelims]
(a) It is the ratio of value of imports to the Gross Domestic Product of a country
(b) It is the total value of imports of a country in a year
(c) It is the ratio between the value of exports and that of imports between two countries
(d) It is the number of months of imports that could be paid for by a country’s international reserves
Answer: (d)
