Reply: Generally, goods that are exempt from local taxes such as state VAT by the States are also exempted from special additional duty.
27. What mechanisms are used in India to ensure that an importer has predictability of the tariffs it must pay? What actions are being taken by the Government of India to resolve the complexity of tariffs? (Pages xi and 27, paragraphs 10 and 50)
Reply: The tariff structure has been simplified considerably in recent years. However, this is an on going process. It is Government's endeavour to gradually remove exemptions.
With the adoption of the Electronic Data Interchange (EDI) system and automation of businesses, the rates of duty and exemptions are automatically determined. All notifications relating to tariff changes are published in the Official Gazette and are made available on the official website.
28. The report indicates that "tariff values" should be reviewed every two weeks, however, some of these values have remained unchanged since 2006. How do you ensure that the values that India is using are not incorrect or arbitrary? (Page xi and xii, paragraph 11)
Reply: Tariff values are currently being fixed only in respect of palm group of oils, crude soybean oil, poppy seeds and brass scrap. These values are frequently reviewed and revised on the basis of prevailing international prices of these goods as observed from the various reputed international journals and other publications. The tariff values are not arbitrary values.
29. Have all prohibitions, licensing and restrictions, requirements for packaging, quality and sanitary conditions been reported by India to the WTO? (Page xii, paragraph 15)
Reply: As and when changes are made in existing regulations or standards and conformity assessment procedures thereof or new regulation or standard and conformity assessment procedures are drafted, this is duly notified to the WTO as per transparency obligations prescribed in the SPS and TBT Agreements.
30. The report notes that it may impose import restrictions on grounds of self sufficiency among others. How is the self sufficiency determined? What is the legal basis to allow this provision? (Page xii, paragraph 15)
