India Blinks for
Ninth Time, Extends Retaliatory Tariff on US Products till June 16
As Washington delays GSP decision, New
Delhi is looking at pushing back tariffs by a month
The government on Tuesday extended the
deadline to impose retaliatory import tariffs on 29 US products till June 16.
A Finance Ministry notification said the
duties, which were to come into effect from May 16, have been
postponed by a month.
The move comes as New Delhi hopes to
sort out trade issues with Washington after the general elections are over and
a new government is in place. The duties, which were to come into effect from
May 16, are now likely to be applicable from mid-June.
The Finance Ministry had issued a
notification earlier this month postponing the date of imposing retaliatory
duties on the US from May 2 to May 16.
India had announced retaliatory tariffs
worth $230 million on about 29 American goods in June last year in response to
imposition of penal tariffs of 25 per cent on steel and 10 per cent on
aluminium from the country by the US.
“The US was supposed to withdraw the GSP in
the beginning of May. Since it did not happen, India postponed the retaliatory
duty till May 16 hoping that it would be clear by then
what was playing on the US’ mind. During US Secretary for Commerce Wilbur Ross’
visit last week, it became clear that Washington did not want to withdraw the
GSP scheme till it gave an opportunity to the new
government formed after the general elections to sort out its concerns. That is
why India is planning to postpone the retaliatory duties till the mid of next
month,” the official explained.
While the US seems to be dilly-dallying
on GSP withdrawal, it has not given any indication yet on whether it was
willing to take back the penal duties imposed on Indian steel and aluminium.
The US wants India to address the price
cap issue for medical devices, provide greater market access for dairy and
agricultural products and also reduce high import
tariffs for mobile phones.
In 2018, bilateral trade in goods and
services registered a growth of 12.6 per cent to $142 billion, from $126
billion in 2017.
[Notification
No. 15/2019-Customs dated 14 May 2019]
Seeks to further amend notification No.
50/2017-customs dated 30th June 2017 to postpone the implementation
of increased customs duty on specified imports originating in USA from 16th
May, 2019 to 16th June, 2019.
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and
sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the
Central Government, being satisfied that it is necessary in the public interest
so to do, hereby makes the following further amendments in the notification of
the Government of India, Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June,
2017, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide, number G.S.R. 785(E), dated
the 30th June, 2017, namely:-
In
the said notification, in the third proviso for the words and figures “16th day
of May, 2019”, the words and figures “16th
day of June, 2019” shall be substituted.
[F.
No. 341/15/2018- TRU]