India-EFTA pact: India to section out import duties on candies, watches, textiles, smartphones

Duties on substantial variety of items imported from EFTA countries–Switzerland, Norway, Iceland and Liechtenstein–including  candies, watches, smartphones, olive oil, corn flakes, equipment, textiles, medicines, cod liver oil, tuna, trout and salmon, will likely be phased out by India beneath the India-EFTA Commerce and Financial Partnership Settlement signed on Sunday.

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“India is providing 82.7 per cent of its tariff traces which covers 95.3 per cent of EFTA exports of which greater than 80 per cent import is gold. The efficient obligation on gold stays untouched. Sensitivity associated to PLI in sectors reminiscent of prescribed drugs, medical gadgets and processed meals have been taken under consideration whereas extending presents,” per a press release launched by the Commerce Division.

Sectors reminiscent of dairy, soya, coal and delicate agricultural merchandise are saved in exclusion listing, it added.

The gadgets on which tariffs will turn into zero instantly on entry into drive of the FTA embody coal (besides steam and coking coal), most medicines, dyes, most textiles and apparels and iron and metal merchandise, based on an evaluation carried out by analysis physique World Commerce Analysis Initiative.

Tariffs on cod liver oil and fish physique oil will likely be eradicated in 5 years time whereas these on tuna, trout, salmon, olive oil, cocoa bean, powder, malt merchandise, corn flakes, instantaneous tea, roasted chicory, most equipment, bicycle elements, clock and watches will likely be eradicated in seven years.

Phasing out of import duties on smartphones, candies, medical gear (most), chocolate, caramel, espresso, avocado, apricot and olives will occur over ten years. 

A number of the obligation reduce presents are unique to Switzerland as it’s by far the most important commerce associate amongst the EFTA international locations. Concessions for some agriculture gadgets have been made based mostly on particular requests.

Responsibility cuts on wines from Switzerland will likely be principally at par with concessions prolonged to Australia beneath the Australia-India Financial Cooperation and Commerce Settlement, the GTRI report mentioned. There will likely be no import obligation discount on wine bottles priced decrease than $5. For bottles priced between $5 and $15, obligation reduce in first 12 months will likely be to 100 per cent from 150 per cent. Duties will subsequently be diminished to 50 per cent in ten equal yearly instalments. 

For wine bottles priced at $15 or extra, obligation reduce within the first 12 months will likely be to 75 per cent from 150 per cent. Duties will lastly be introduced right down to 25 per cent over ten years with yearly discount in ten equal instalments.

India has additionally dedicated to a 50 per cent tariff discount in sugar in 10 years and a 50 per cent tariff discount for reduce and polished diamonds, to 2.5 per cent, in 5 years, the GTRI evaluation famous.

As a lot as 98 per cent of India’s exports to Switzerland (market accounting for 70 per cent of India’s exports to EFTA) are industrial merchandise and they’ll now be imported duty-free, the GTRI report mentioned. “Nonetheless, this doesn’t create new market alternatives since these merchandise had been already getting into Switzerland with out obligation beneath the Most Favoured Nation (MFN) standing,” it added.

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The remaining 2 per cent of exports are agricultural merchandise. “Switzerland has excluded most agricultural gadgets reminiscent of dairy merchandise, honey, numerous greens, wheat, maize flour and cane sugar from these concessions,” it mentioned.