Indian move to cut alcohol beverage duties 'positive': US
Sunday, 8 July 2007
WASHINGTON, July 7 (AFP): The United States yesterday welcomed as "positive" India's announcement that it would reduce some duties on alcoholic beverages following a World Trade Organisation (WTO) complaint.
"We are studying India's recent announcement that it has withdrawn the additional duty on imports of alcoholic beverages," said US Trade Representative Susan Schwab.
"Withdrawal of this duty would be a positive step in addressing US concerns. What we are seeking is a level playing field, consistent with India's WTO commitments."
Both the United States and Europe filed complaints to the WTO, arguing that the layers of custom duties on wines and spirits ran counter to New Delhi's WTO commitments.
India Thursday confirmed that a tax known as the additional customs duty had been removed earlier this week, while the basic customs duty had been raised.
"The total effect will be a reduction in prices," spokesman BS Chauhan said in New Delhi.
US officials said in their complaint that India, on top of its basic customs tariffs, imposes an additional duty of 20 to 75 per cent on the value of imports of beer and wine and from 25 to 150 per cent on imports of distilled spirits.
Moreover, India applies an "extra additional duty" on these imports that puts the total duties in a range of 150 to 550 per cent.
The changes announced by New Delhi could make less-expensive wines substantially cheaper for consumers, but would actually increase the duty rate for higher-end wines.
In Brussels, the European Commission welcomed the cuts, but made no promise to drop its case before the WTO.
The EU began probing India duties on European wine and spirits in September 2005 after receiving complaints from EU producers, for whom India represents a potentially huge market.
In April, the WTO agreed to take up the European Union's complaint on Indian import duties on wines and spirits. The United States, Chile, Australia and Japan said they would participate in that dispute as third parties.
"We are studying India's recent announcement that it has withdrawn the additional duty on imports of alcoholic beverages," said US Trade Representative Susan Schwab.
"Withdrawal of this duty would be a positive step in addressing US concerns. What we are seeking is a level playing field, consistent with India's WTO commitments."
Both the United States and Europe filed complaints to the WTO, arguing that the layers of custom duties on wines and spirits ran counter to New Delhi's WTO commitments.
India Thursday confirmed that a tax known as the additional customs duty had been removed earlier this week, while the basic customs duty had been raised.
"The total effect will be a reduction in prices," spokesman BS Chauhan said in New Delhi.
US officials said in their complaint that India, on top of its basic customs tariffs, imposes an additional duty of 20 to 75 per cent on the value of imports of beer and wine and from 25 to 150 per cent on imports of distilled spirits.
Moreover, India applies an "extra additional duty" on these imports that puts the total duties in a range of 150 to 550 per cent.
The changes announced by New Delhi could make less-expensive wines substantially cheaper for consumers, but would actually increase the duty rate for higher-end wines.
In Brussels, the European Commission welcomed the cuts, but made no promise to drop its case before the WTO.
The EU began probing India duties on European wine and spirits in September 2005 after receiving complaints from EU producers, for whom India represents a potentially huge market.
In April, the WTO agreed to take up the European Union's complaint on Indian import duties on wines and spirits. The United States, Chile, Australia and Japan said they would participate in that dispute as third parties.