Consider the following w r t recent export oriented strategies of government New scheme for Remissio...........

Economic Affairs Foreign Trade - Trends and Policy

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Consider the following w.r.t. recent export oriented strategies of government;

New scheme for Remission of Duties or Taxes on Export Product (RoDTEP) will replace Merchandise Exports from India Scheme (MEIS) for reimbursement of taxes & duties for export promotion
The Union commerce ministry will be the nodal agency for its implementation

Which of the above is/ are correct?

both 1 and 2

1 only

2 only

neither 1 nor 2

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Explanation:

The Government of India reacted strongly and quickly to the recent contraction of exports, which reduced by 6.05% , a 25 quarter low resulting in plunging of economic growth of the country by 5% year on year for April-June quarter slowest in over six years. Finance Minister Nirmala Sitharaman announced RoDTEP Scheme (Remission of Duties or Taxes on Export Products Scheme) a new measures to boost exports.

The RoDTEP Scheme came into effect from 1st January 2020 and will replace MEIS and RoSCTL but the support given to garments exports through either the MEIS or Rebate of State and Central Taxes and Levies (RoSCTL) scheme will continue till December, 31, 2019. The rates are yet to be decided in the new RoDTEP scheme but it will be based on previous method.

Export Credit Anounced

The RoDTEP Scheme will provide an additional export credit of up to Rs.68,000 crores and the projected forgone revenue will be up to Rs.50,000 crores.

Automated ITC

The ministry of finance (MoF) will Create a fully automated procedure for ITC for manufacturing and service sector through Form GST RST-01, which will cover 60% of all loan to exporters with a 90% increase. Automation will reduce double taxation, help claims for deemed exporters, calming GST tax refund and act as authentic reference for foreign entities like UN, WTO etc. Form GST RST-01 come in will effect from September 2019.

Affordable testing and Certification of Products Under RoDTEP Scheme

Affordable testing and Certification will be deployed for exporters in the country instead of relying on international organization. It will be done through Public Private Partnership(PPP). Also a New working group on Standards will also be established that will be responsible for laying down roadmap for adoption of standards, enforcement and timeliness. The group will also provide support for exporters to deal with non-tariff barriers like export clearance process and slow testing.

Features of RoDTEP Scheme

Decrease in credit interest rates to MSMEs.
Increase in loan availability for exporters introduced through ECG acting as guarantee for loans availed.
A budget of Rs.1,700 crore to provide higher insurance cover through Export Credit Guarantee Corporation (ECGC), to increase the lending opportunities from banks
Ministry of finance also emphasized on reducing turnaround time on airports and ports to decrease delays in exports. A real time monitoring of clearance status via digital platform will be made available.