World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Singapore 1:

The WTO Secretariat report (WT/TPR/S/249, page 20, para 2) notes that India uses trade policy to attain short term goals such as containing inflation. We would like to seek India's elaboration on some of these trade policy measures.

Reply: Given the persisting inflationary situation affecting the common man, some trade policy measures were taken to contain prices of essential commodities. These include: reduction of import duties to zero on rice, wheat, pulses, edible oils (crude) and onion; ban on export of non basmati rice, edible oils (except coconut oil and forest based oil) and pulses (except Kabuli chana and organic pulses up to a maximum of 10000 tonnes per year); suspension of futures trading in rice, urad and tur by the Forward Markets Commission, reduction of duty under tariff rate quota (TRQ) for skimmed milk powder (SMP) from 15% to 5% for imports up to an aggregate of 10000 metric tonnes in a financial year; import of 30000 tonnes of milk powder and 15000 tonnes of milk fat at zero duty allowed to National Dairy Development Board (NDDB) during 2010 11 under TRQ; and reduction in import tariffs on crude oil and petrol and diesel etc.

Goods Related Issues

Singapore 2:

The WTO Secretariat report (WT/TPR/S/249, page 36, para 9) states that "Re imported goods are subject to duties, except goods exported for repairs abroad, for exhibitions or as samples which may be re imported duty free". We would like to seek clarification of the re import procedures and also whether repaired goods would include remanufactured goods.

Reply: The re import procedures are dealt with under Section 20 of the Customs Act, 1962 and the various exemption notifications. The re imported goods are liable to duty and are subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof. However, there are exemption notifications relating to re import. As for instance, under notification No. 158/95 Cus., dated 14.11.1995, goods manufactured in India and re imported into India for repairs or for reconditioning are exempt from duty subject to the conditions, inter alia, that such re importation takes place within 3 years from the date of exportation and the Customs is satisfied as regards identity of the goods and that the goods after repairs or reconditioning are exported. Likewise, under notification No. 43/96 Cus., dated 23.7.1996, goods manufactured in India and exported for carrying out coating, electroplating or polishing operations, when re imported into India, after completion of the said processes are charged to duty on the value comprising the fair cost of the said processes carried out abroad and insurance and freight, both ways. One of the conditions for availing of this facility is establishment of the identity of goods.

Chapter VIII of the Indian Customs Tariff, Vol II, published by the Directorate of Publicity and Public Relations, Customs, Central Excise and Service Tax, New Delhi provides the details of exemptions. The details can also be viewed at www.cbec.gov.in.