Question 1
The "RODTEP" scheme (Remission of Duties and Taxes on Exported Products) was introduced to replace which scheme?
View Explanation
RODTEP replaced MEIS because MEIS was found to be non-compliant with WTO rules. RODTEP ensures that exporters are refunded embedded taxes/duties that were not previously rebated.
Question 2
Which institution primarily provides Export Credit Insurance in India?
View Explanation
ECGC Limited is a government enterprise that provides export credit insurance facilities to exporters and banks to protect them from the risk of non-payment by foreign buyers.
Question 3
What is the primary tax benefit for a unit set up in a Special Economic Zone (SEZ) under the SEZ Act, 2005?
View Explanation
SEZ units enjoy 100% income tax exemption on export income for the first 5 years, 50% for the next 5 years, and 50% of the plowed-back export profit for the next 5 years (Section 10AA of Income Tax Act).
Question 4
A country is said to have a "Trade Surplus" when:
View Explanation
Trade Balance specifically refers to the difference between exports and imports of physical goods. If Exports > Imports, it is a Surplus.
Question 5
The "Export Promotion Capital Goods" (EPCG) scheme allows import of capital goods at:
View Explanation
The EPCG scheme allows exporters to import capital goods (machinery) at zero customs duty, provided they fulfill an export obligation equivalent to 6 times the duty saved within 6 years.
