UPSC Prelims Practice Questions — RODTEP rates cut

Q1. With reference to the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and its predecessor, the Merchandise Exports from India Scheme (MEIS), consider the following statements: 1. MEIS was challenged at the World Trade Organization as an export subsidy inconsistent with the Agreement on Subsidies and Countervailing Measures, whereas RoDTEP is structured as a remission of embedded taxes. 2. Unlike MEIS, the benefits under RoDTEP are issued as transferable electronic duty credit scrips that can be used to pay Basic Customs Duty on imports. 3. RoDTEP, unlike MEIS, is administered by the Central Board of Indirect Taxes and Customs and not by the Directorate General of Foreign Trade. Which of the statements given above is/are correct?

  1. MEIS was challenged at the World Trade Organization as an export subsidy inconsistent with the Agreement on Subsidies and Countervailing Measures, whereas RoDTEP is structured as a remission of embedded taxes.
  2. Unlike MEIS, the benefits under RoDTEP are issued as transferable electronic duty credit scrips that can be used to pay Basic Customs Duty on imports.
  3. RoDTEP, unlike MEIS, is administered by the Central Board of Indirect Taxes and Customs and not by the Directorate General of Foreign Trade.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. As per DGFT Notification No. 60/2025-26 dated 23 February 2026, the notified RoDTEP rates and value caps for all HS lines under Appendix 4R and Appendix 4RE were restricted, with immediate effect, to what percentage of the previously notified levels?

  • A. 25 per cent
  • B. 50 per cent
  • C. 75 per cent
  • D. 90 per cent

Q3. With reference to the structural features of the RoDTEP scheme, consider the following: 1. It is a WTO-compliant scheme notified under the Foreign Trade Policy. 2. Benefits are issued as transferable electronic duty credit scrips usable to pay Basic Customs Duty on imports. 3. It reimburses the Goods and Services Tax already refunded to exporters through input tax credit. 4. Exports by Export Oriented Units (EOUs) and Special Economic Zones (SEZs) are covered under a separate Appendix 4RE rate schedule. Which of the above is/are correctly identified?

  1. It is a WTO-compliant scheme notified under the Foreign Trade Policy.
  2. Benefits are issued as transferable electronic duty credit scrips usable to pay Basic Customs Duty on imports.
  3. It reimburses the Goods and Services Tax already refunded to exporters through input tax credit.
  4. Exports by Export Oriented Units (EOUs) and Special Economic Zones (SEZs) are covered under a separate Appendix 4RE rate schedule.
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q4. The RoDTEP scheme, including the February 2026 rationalisation of its rates and value caps, is operationalised by which one of the following authorities?

  • A. Central Board of Indirect Taxes and Customs under the Ministry of Finance
  • B. Directorate General of Foreign Trade under the Ministry of Commerce and Industry
  • C. Department of Revenue under the Ministry of Finance
  • D. Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry
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