World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Indonesia 7:

Report by the Secretariat: MEASURES DIRECTLY AFFECTING IMPORTS: Sanitary and Phytosanitary Measures (SPS)

Imports of animal products into India require sanitary imports permits issued by the Department of Animal Husbandry, Dairy and Fisheries; permits must be obtained prior to shipping from the country of origin. The Department approves or reject the application after an import risk analysis on a case by case basis. Could India please provide further explanation concerning the mechanism of approval and rejection on a case by case basis? Are the import risk analysis based on commodity kind, country, kind of animal disease, or other parameters? (WT/TPR/S/249, Page 73, Para 121).

Reply: The sanitary import permit is issued for import of livestock products if, after a detailed import risk analysis, it is found that the import of the consignment will not adversely affect the health of the animal and human populations of the country. The import risk analysis is conducted by a committee of officers of the Department on the basis of internationally recognized scientific principles of risk analysis. The analysis is conducted with reference to the specific product and the disease situation prevailing in the exporting country vis à vis the disease situation in India.

Indonesia 8:

Report by the Secretariat: MEASURES AFFECTING PRODUCTION AND TRADE: Incentives

As noted in the report by secretariat, the central government allocates funds to subsidize interest rates, including to exporters managed by Ministry of Finance, and of Heavy Industries and Public Enterprises. Preferential interest rates to exporters, was given to many sectors during 1 April 2007 up to 31 March 2011.

Could India please provide further explanation to ensure that the allocated funds to subsidize interest rate to Indian exporters are still in accordance with WTO Rules (SCM Agreement). Does India intend to maintain its policy in the future? (WT/TPR/S/249, Page 92, Para 181).

Reply: The Benchmark Prime Lending Rate (BPLR) system was replaced by the Base Rate System with effect from 1 July 2010. Banks may choose any benchmark/methodology to arrive at the Base Rate that may be disclosed transparently. Banks may determine their actual lending rates on loans and advances with reference to the base rate and by including such other customer specific charges as considered appropriate. Accordingly, under the Base Rate System interest rates applicable for all tenors of fresh/renewed rupee export credit advances are at or above base rate.