After USA withdrawn
the Generalized System of Preferences (GSP) earlier this month India has taken
decision to impose its long-promised retaliatory tariffs on more than 28
products imported from the US, including almonds, fresh apples and phosphoric
acid, amidst rising trade tensions between the two countries. The move will be
taken in action from Sunday, as per the notification from the Central Board of
Indirect Taxes and Customs (CBIC) late Saturday.
A separate
notification has also been released by the CBIC stating to raise the standard
customs duty (applicable for all countries) for lentils, boric acid and some
diagnostic reagents.
The
standard duty for lentils has been raised from 40 percent to 50 percent, for
boric acid to 27.5 per cent from 17.5 per cent and for diagnostic reagents
other than those for pregnancy confirmation and diagnosing AIDS to 30 per cent
from 20 per cent. As per the notification the raise has been seen of 10 percent
on each of the product
According
to the latest notifications, the import duties on fresh or dried shelled
almonds has been raised to Rs 41/kg, while the tariffs on fresh apples, has
gone up to 70 percent, earlier it was 50 percent. The import duty on phosphoric
acid has been set at 10 per cent.
India is
the largest importers of almonds from the US, with imports worth $615.12
million of fresh or dried shelled almonds in annual year of 2018-19. Its
imports of fresh apples stood at $145.20 million and phosphoric acid at $155.48
million during the same period, information’s are from the Indian commerce
ministry. The import of diagnostic reagents stood at nearly $145 million that
year.
India had
first notified the retaliatory tariffs on over $200 million worth of goods in
June 2018 after the US imposed tariffs on steel and aluminum products. However,
the government deferred the move several times over the course of the last
year.
The US is
one of India’s largest trading partners, exporting $33.1 billion worth of goods
to India in 2018. However, India still had a goods trade surplus of $21.3
billion with the country.
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