Report by the Secretariat (WT/TPR/S/249):III. TRADE POLICIES AND PRACTICES BY MEASURE: (2) Measures Directly Affecting Imports: (i) Customs procedures: Page 38, paragraph 15:
The report indicates that imports under duty exemptions and free-trade zone schemes are required to execute a bond equal to the amount of payable duty on the imported goods. How is a determination made on the amount of payable duty?
Reply: The amount of payable duty is the total duty payable on the imported goods as per the rates applicable, but for the exemption available and claimed under the said schemes.
U.S. Follow-Up Question: Is the rate applicable the MFN rate or another rate? Is the amount of payable duty based on the rate applicable for the good as imported from the free trade zone or as entered into the free trade zone? If the applicable rate is based on the total duty payable for the good at the time it is imported from the free-trade zone, how does India know what the final good will be for purposes of determining the total duty applicable? Are similar bonding requirements imposed on goods that are not imported under duty exemptions or free-trade zone schemes?
Reply: The rates applicable are the MFN rates. The amount of payable duty is calculated with reference to the rates applicable on the imported goods as they enter into the free trade zone. Generally speaking, the goods are not subjected to bonding requirements if they are not imported under the duty exemption or free trade zone schemes.
