World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

The duties are levied on the customs value of goods which, inter alia, includes the landing charges. These charges are not paid to the customs authorities.

4. 
   Tariffs
   

WTO Secretariat's report, page 45, para. 31

The reports of both India and the Secretariat note that tariffs have been progressively reduced in recent years. As noted in both reports, India attributes its overall enhanced productivity and competitiveness to this increased openness.

However, some sectors remain highly protected: the average of 33.2% for agricultural goods masks some exceptionally high peaks, i.e. 150% for spirit drinks, or the average of 8.9% for manufactured goods hides the 60% rate applied to passenger cars.

11. 
    When does India plan to further reduce tariffs in these sectors in order to bring the stimulus of international competition to these parts of the Indian economy?
    

Reply: India has autonomously reduced its tariffs from time to time on a number of agricultural products, as part of its domestic policy aimed, inter alia, at domestic supply management, and in keeping with its continuing commitment to trade openness.

(v) Other charges affecting imports

WTO Secretariat's report, page 50 51, para. 43

The report of the WTO Secretariat notes that most imports remain subject to the SAD.  In the case of spirit drinks the headline rate of 4% is effectively 10% cif because it is applied on the duty paid value i.e. 4% x (cif + BCD @150% cif). The report further states that the SAD is refundable for those imported goods on which State level sales/value added taxes are paid. However, the procedures for reclaiming the SAD are so bureaucratic and time consuming that many importers conclude that seeking a refund is not cost effective.

11. 
    Does India plan to give early consideration to suspension of the SAD on those imported goods for which the former Additional Duty (AD) has already been suspended?