3.1 Measure Directly Affecting Imports
3.1.4 Tariffs
3.1.4.1 Applied tariffs
Page 40 Para 3.22
"The simple average applied MFN tariff in 2014-15 is 13%, up from 12% at the time of the last Review (2010-11). The overall increase is mainly due to a rise in tariffs in agriculture (WTO definition), whose overall average at 36.4% remains considerably higher than the average for non-agricultural products (9.5%). The increase in the average tariff for agriculture is mainly due to an increase in tariffs for cereals and preparations thereof (from 30.4% in 2010-11 to 40.9% in 2014-15), oilseeds and fats (from 18.5% to 33.2%), and sugars and confectionary (from 33.4% to 41%). Above average tariff protection is also found in a number of other products such as beverages, spirits and tobacco (77.5%), and coffee and tea (74.8%). The average MFN tariff for non-agricultural products also rose from 8.9% to 9.5%, primarily due to increased tariffs on transport equipment from 21.5% to 32.1%. Average tariffs also rose for minerals and metals, chemicals, textiles, leather and rubber and electric machinery (Table 3.4)."
Question:
-
When does India plan to reduce tariffs on its agricultural products which are high compared to non-agriculture products?
Reply: The effective tariff rate of agricultural products is fixed in response to the price volatility in the domestic market and as a measure of balancing the interests of consumers and domestic farmers.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measure Directly Affecting Imports
3.1.5 Other charges affecting imports
Page 42 Para 3.27
"The AD and SAD continue to be applied to imports in lieu of excise (CENVAT) and local state taxes respectively. The AD, which was introduced in 1975 to offset domestic excise taxes, is currently charged at the general rate of 12.5%, raised from 10% at the time of previous Review. […] Imports that are exempt from customs duty, either through an exemption notification or by the tariff and the AD, are exempt from payment of the SAD as well."
Question:
-
The report indicates that India imposes an Additional Duty (AD) and Special Additional Duty (SAD) on imports. On what basis are these duties applied? And what are the basis for the increase?
Reply: Additional Duty of Customs (CVD) is levied at a rate equivalent to the rate of excise duty charged on the domestic production of a similar item. Similarly, Education Cess and Higher Education Cess charged as a percentage of the Excise Duty for domestic goods was also charged on similar imported goods. However, w.e.f 01.03.2015, Education Cess and Secondary & Higher Education Cess leviable on all excisable goods has been fully exempted. Simultaneously, the standard ad valorem rate of duty of excise (i.e. CENVAT) has been increased from 12% to 12.5%.
Similarly, Special Additional Duty (SAD) is charged on imported goods in lieu of sales tax/value added tax charged on the domestic sale of goods.
Both these taxes are in the nature of countervailing/equalizing taxes and thus would apply to imported goods so as to provide a level playing field for domestic industry. Moreover, the credit of these additional duties is available to be set-off against domestic taxes such as Central Excise Duty and Service Tax under the CENVAT Credit Rules. Likewise, a full refund of the SAD can be claimed by an importer once the imported goods are sold in the domestic market on payment of State VAT.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measure Directly Affecting Imports
3.1.9 Import prohibitions, restrictions, and licensing
3.1.9.4 Import quotas
Page 51 Para 3.51
"India maintains import quotas for marble and similar stones (HS 25151100 and 25151210) and for sandalwood (HS 44039922). Quotas are established annually and administered on an MFN basis. There is no maximum limit to be allocated per applicant. Applications are examined upon receipt and assessed according to the criteria stated in the notifications and circulars issued by DGFT on a yearly basis."
Question:___How_often_is_the_list_of_Indian_standard_products_updated__Reply'>Question:
-
Why does India maintain import quotas on these two products?
Reply: India maintains import quota on Marble and similar stones on the ground of "Conserving exhaustible natural resources". These items have been notified to WTO in 1997(WT/BOP/N/24 dated 22.05.1997) by India under Article XX(g).
For sandalwood, Import restrictions have been put on because India imports only legally produced Sandalwood and does not become party to illegal international trade in sandal wood and also to keep account of imported sandalwood so that illegally felled domestic sandalwood is not passed off by the unscrupulous elements as imported sandalwood.
-
What are the determinants behind the quota level?
Reply: Quotas are being determined in consideration of the need of certain categories of marble and sandalwood for Indian market.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measure Directly Affecting Imports
3.1.12 Standards and other technical requirements
3.1.12.1 Standards
Page 59 Para 3.87
"Standards in India are established based on the provisions of the Bureau of Indian Standards (BIS) Act 1986 and BIS Rules 1987. The BIS is responsible for formulating and enforcing standards for 14 sectors, and development of activities relating to certification of product and quality systems, testing and calibration, enforcement, international cooperation, and creating awareness among consumers; other agencies are responsible for enforcement of standards (and technical regulations) in other areas (Table A3.3). Sectoral coordination committees have been established for food processing, power, steel, automotives, textiles, and information technology, in order to develop harmonized standards at the national level. International standards are often adopted as Indian standards under the numbering system of ISO/IEC, or are harmonized with international standards in areas of India's trade interests."
Question:
-
How often is the list of Indian standard products updated?
Reply: The list of Indian Standards is updated as and when the Standards are published/revised/withdrawn and is available on BIS website http://www.bis.org.in.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measure Directly Affecting Imports
3.1.12 Standards and other technical requirements
3.1.12.3 Certification and conformity assessment
Page 60 Para 3.96
"The BIS is the national certifying body. Conformity assessment procedures are regulated by the BIS Act 1986, the BIS Rules 1987, and BIS (Certification) Regulations 1988. The central Government, on grounds of public interest, notifies which articles or processes should conform to an Indian standard and should bear the BIS certification mark under a licence from BIS. Some 92 products are subject to the mandatory BIS certification mark. As at 1 January 2015, there were 842 products under voluntary certification. According to the authorities, the requirements for the use of the BIS certification mark are the same for domestic and imported products. Besides the normal product certification scheme, the BIS also grants licences to environment friendly products under a special scheme and awards the ECO mark to such products."
Question:
-
Please indicate the criteria for determining which product should carry the mandatory BIS certification mark?
Reply: The criteria for determining which product shall carry the mandatory BIS Certification Mark is as per clause 14 of BIS Act 1986 which is reproduced below:
"14. If the Central Government, after consulting the Bureau, is of the opinion that it is necessary or expedient so to do, in the public interest, it may, by order published in the Official Gazette,
a.notify any article or process of any scheduled industry which shall conform to the Indian Standard; and
b.direct the use of the Standard Mark under a licence as compulsory on such article or process.
Explanation - For the purposes of this section, the expression "scheduled industry" shall have the meaning assigned to it in the Industries (Development and Regulation) Act, 1951."
The various Ministries of the Government of India issue Quality Control orders from time to time, relevant link for which are given in BIS website, http://www.bis.org.in and websites of other ministries of the Government of India.
-
Can India please indicate which products have been licensed as being "environment-friendly"?
Reply: The details of the products covered are given in the BIS website http://www.bis.org.in/cert/prod_cert_scheme.asp.
-
What are the specific criteria for a product to be granted an ECO license?
Reply: The specific criteria for products covered under eco-marking scheme are given at http://www.bis.org.in/cert/prod_cert_scheme.asp.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measure Directly Affecting Imports
3.1.13 Sanitary and phytosanitary requirements
Page 63 Para 3.107
"The Food Safety and Standards Authority of India (FSSAI), established under FSSA, is mandated to establish standards for articles of food and to regulate their manufacture, storage, distribution, sale and import with a view to ensuring availability of safe and wholesome food for human consumption, and contributing to the development of international technical standards for food, sanitary and phytosanitary standards. Other main institutions involved in the establishment and implementation of SPS measures are the Ministry of Health and Family Welfare, the Department of Animal Husbandry, Dairying, and Fisheries in the Ministry of Agriculture; the Directorate of Plant Protection, Quarantine and Storage in the Ministry of Agriculture; the BIS; and other state government agencies. India's national enquiry points under the WTO SPS Agreement are: the Department of Animal Husbandry, Dairying, and Fisheries for animal health and related issues; the Ministry of Health and Family Welfare for food safety related issues; and the Department of Agriculture and Cooperation for plant health or phytosanitary issues. Between 2011 and 2014, India made 23 notifications to the Committee on SPS Measures."
Question:
-
Could India explain whether the regulation by FSSAI also applies to domestically-produced product as is the case of imported products?
Reply: The regulations notified by the FSSAI are equally applicable to the domestically produced product as well as imported products without any discrimination.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.2 Measures Directly Affecting Exports
3.2.4 Export prohibitions, restrictions, and licensing
3.2.4.1 Export prohibitions
Page 67 Para 3.125
"Export prohibitions apply mainly for environmental, food-security, marketing, pricing, and domestic supply reasons, and to comply with international treaties. Since its previous Review, the list of products subject to export prohibitions in India has remained largely unchanged; on 9 September 2011, export prohibition on non-basmati rice and wheat was removed. (Table A3.4)."
Question:
-
Could India gives detailed information on the list of products that are prohibited for export?
Reply: The list of items which are prohibited for exports is attached as Annex A at the end of this note. These can also be seen at dgft.gov.in.
Annex A- List of Items prohibited for exports
Sl. No.
|
Tariff Code/
Chapter
|
Description
|
1
|
0106
0208
0210
0300
0407
0408
0410
0502
0504
0505
0506
0507
0508
0509
0510
0511
1504
1506
1516
1517
1518
1600
3000
|
All wild animals, animal articles (including their products and derivatives), excluding those for which ownership certificates have been granted and those required for transactions for education, scientific research, and management under the Wild Life (Protection) Act 1972, including their parts and products
|
2
|
01063100
01063200
01063900
|
Live exotic birds, excluding albino budgerigars, budgerigars, Bengali finches, white finches, and zebra finches (which may be exported subject to preshipment inspection).
|
3
|
02011000
02012000
02013000
02021000
02022000
02023000
|
Beef of cows, oxen and calf
|
4
|
02061000
02062100
02062200
02062900
02102000
|
Beef in the form of Offal of cows, oxen, and calf
|
5
|
02011000
|
Meat of buffalo (both male & female) fresh and chilled or frozen: carcasses and half-carcasses.
|
6
|
02012000
|
Meat of buffalo (both male & female) fresh and chilled or frozen: Other cuts with bone in.
|
7
|
03000000
|
Marine species and their parts, products, and derivatives mentioned in the Schedules of the Wild Life (Protection) Act 1972 and included in the schedule of CITES
|
8
|
03037999
|
Bêche de mer (sea cucumber)
|
9
|
03057100
|
Shark fins of all species of Shark
|
|
10
|
03061100
03062100
|
Rock lobsters: Panulirus Polyphagus 300 gmas whole chilled, live or frozen, 250 gm as whole cooked; 90 gm as tail.
|
11
|
03061100
03062100
|
Rock lobsters: Panulirus Homarus 200 gmas whole live, chilled or frozen, 170 gm as whole cooked; 50 gm as tail.
|
12
|
03061100
03062100
|
Rock lobsters: Panulirus Ornatus 500 gmas whole live/chilled or frozen, 425 gm as whole cooked; 150 gm as tail.
|
13
|
03061210
03061290
03062200
|
Sand lobster: Thenus orientalis 150 gm as whole; 45 gm as tail.
|
14
|
05061049
05119999
|
Human skeletons
|
15
|
05059010
|
Peacock tail feathers.
|
16
|
05119999
|
Handicrafts and articles of peacock tail feathers.
|
17
|
05061041
05061049
05079040
|
Shavings of shed antlers of Chital and Sambhar.
|
18
|
05119999
|
Manufactured articles of shavings of shed antlers of Chital and Sambhar
|
19
|
05080050
|
Sea shells, including polished sea shells and handicrafts made out of those species included in the Schedules of Wild Life (Protection) Act 1972.
|
20
|
0713
07131000
07132000
07133100
07133200
07133300
071339
07133910
07133990
07134000
07135000
071390
07139010
07139091
07139099
|
Dried leguminous vegetables, shelled, whether or not skinned or split [excluding Kabuli Chana and 10,000 MTs of Organic pulses and lentils per annum]
|
21
|
100610
10061090
10062000
100630
10063010
10063090
10064000
|
Non basmati rice through non- EDI ports (except export under Food Aid Programme and export to Maldives under bi-lateral Trade Agreement). (Export of non-basmati rice was prohibited since October, 2007. The same has been made free by the private parties out of privately held stocks only through EDI ports vide Notification No. 71 dated 09.09.2011 and also through LCS on Indo-Nepal and Indo-Bangladesh border vide Notification No. 98 dated 23.02.2012)
|
22
|
100110
10011090
100190
10019020
10019039
|
Wheat (including durum wheat) and meslin through non-EDI ports (Export of wheat was prohibited since February, 2007. The same has been made free through EDI ports vide Notification No. 72 dated 09.09.2011 and also through LCS on Indo-Nepal and Indo-Bangladesh border vide Notification No. 99 dated 23.02.2012). Government has also permitted 20 lakh tons of wheat out of FCI stocks through CPSUs of Department of Commerce.
|
23
|
06010000
06020000
12110000
06011000
06012010
06021000
06029020
06029030
|
Plants and plant portions of wild origin, of species specified in any of the Schedules of the Wild Life (Protection) Act 1972 or Appendix I of CITES or in the Export Licensing Note 1.
|
24
|
14011000
|
Muli Bamboo ( Export was free till 31.03.2010)
|
25
|
15010000
15020010
15020020
15020030
15020090
15030000
15050010
15050020
15050090
15060010
15060090
|
Tallow, fat and/or oils of any animal origin, excluding fish oil, buffalo tallow and lanolin
|
26
|
All Codes under Chapter 15
|
All edible oils under Chapter 15 of Schedule 1 of ITC(HS) Classification of Export and Import Items [except a few exemptions namely export of (a) Castor Oil (b) coconut oil from all EDI Ports and through all Land Customs Stations on Indo-Bangladesh, Indo-Nepal, Indo-Bhutan and Indo-Pakistan borders (c) Deemed export of edible oils(as input raw material) from DTA to 100% EOUs for production of non-edible goods to be exported (d) edible oils from DTA to SEZ to be consumed by SEZ units for manufacture of processed food products subject to applicable value addition norms (e) export of oil produced out of minor forest produce even if edible, ITC(HS) Code 15159010, 15159020, 15159030, 15159040, 15179010 and 15219020) (f) 10,000 MTs of organic edible oil per annum subject to certain conditions and (g) edible oil in branded consumer packs of up to 5 Kgs through EDI ports subject to MEP of USD 900 per MT]
|
27
|
2903
|
Chemicals under the Montreal Protocol when exported to a country which is not party to the Montreal Protocol on substances that deplete the ozone layer.
|
28
|
40141010
|
Condoms (Which are meant for Family Planning operations of Government of India)
|
29
|
44011000
44012100
44013000
|
Wood and wood products in the form of logs, timber, stumps, roots, barks, chips, powder, flakes, dust, pulp and charcoal, other than sawn timber made exclusively out of imported logs/timber.
|
30
|
44011010
44011090
|
Fuel wood in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms
|
31
|
44020010
44020090
|
Wood charcoal whether or not agglomerated
|
32
|
44071010
44071020
44071090
44072910
44072990
44079910
44079920
44079990
|
Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end jointed, of a thickness exceeding 6 mm, other than sawn timber made exclusively out of imported logs/timber
|
33
|
12119050
44039922
|
Sandalwood in any form, but excluding finished handicraft products of sandalwood, machine finished sandalwood products, sandalwood oil
|
34
|
44039918
44079990
|
Red sanders wood in any form, whether raw, processed or unprocessed, excluding Value added products of Red Sanders wood such as Chips, Powder, Extracts, Dyes, Musical Instruments, Parts of Musical Instruments, Furniture, Parts of various sizes of furniture (maximum cross section: sizes: 15 cm X 15 cm; Planks: 20 cm X 7.5 cm and maximum length 2.5 Mtrs), toys, dolls & other handicrafts made from Red Sanders wood procured from legal sources.
|
35
|
47010000
|
Mechanical wood pulp
|
36
|
47020000
|
Chemical wood pulp, dissolving grades
|
37
|
47030000
|
Chemical wood pulp, soda or sulphate, other than dissolving grades
|
38
|
47040000
|
Chemical wood pulp, sulphite, other than dissolving grade
|
39
|
47050000
|
Semi chemical wood pulp
|
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