Consider the following statement regarding RoDTEP Scheme:

1. RoDTEP is a WTO-compliant scheme, that replaced the Merchandise Exports from India Scheme (MEIS).

2. This scheme reimburses currently un-refunded Central, State, and Local taxes and duties.

The correct statement/s is/are:

Statement 1 is Correct: RoDTEP was launched specifically to replace the MEIS (Merchandise Exports from India Scheme). The MEIS was challenged by the USA at the World Trade Organization (WTO) on the grounds that it was a prohibited export subsidy. RoDTEP is designed to be WTO-compliant because it does not provide a direct subsidy; instead, it simply ensures that taxes and duties are not exported, following the global principle that "taxes should not be exported."

Statement 2 is Correct: The primary mechanism of this scheme is to reimburse exporters for various embedded taxes and duties that were previously not refunded under other schemes (like GST or Drawback). This includes VAT on fuel used in transportation, Mandi tax, Coal Cess, and electricity duties.

Key Features of RoDTEP

Implementation: It is managed by the Department of Revenue (Ministry of Finance) and implemented via a digital end-to-end automation system.

Transferable Scrips: The refund is issued in the form of transferable duty credit scrips maintained in an electronic ledger with the Customs department. These scrips can be used to pay basic customs duty on imports or sold to other importers.

Inclusivity: It covers a vast range of sectors (over 8,000 items) to boost the competitiveness of Indian exports in the global market.